Having a bank account is one of the best ways to keep up with expenses, pay reoccurring bills, and help you save saving and much more. But the question that usually arises is How Many Bank Accounts Should I Have? This is because some people think that having more than one bank account is not necessary.
That is contrary to this article and today I am going to tell you how many banks accounts you should have. If you are among those that are contemplating the number of bank accounts that you need then put everything you are doing aside and read this article to the end.
Because after you are done reading this article today you are going to know exactly how many bank accounts you should have and also the importance of having more than one bank account.
How Many Bank Accounts Should I Have?
Having more than one bank account is totally dependent on your financial situation and the financial goals you are looking to achieve. So there is no specific reason why you should not have more than one bank account but it is beneficial to have more than one bank account.
There is no limit to the number of accounts that you can have rather it is your financial goals that determine how many account numbers you can have. There are various reasons why people would want to have more than one bank account one such reason is for the purpose of saving and another reason is paying bills.
This is what determines how many account numbers you will have and the type of account that you are going to be making. For this reason, we have narrowed down the number of bank accounts that you need to have below.
1. A checking account for payment of bills
A checking account is very much different from a savings account because checking accounts are created in a way that they are used for everyday payments. But when it comes to saving accounts it is only needed for saving money. Money in a savings account cannot be accessed every time there is a specific withdrawal limit and time frame.
This is why it is very important to have a checking account when you have various bills that you need to make payments for in a reoccurring manner. It is only a current account that can be used to pay these bills such as housing, utilities, insurance, car loan, and others. A savings account cannot be used for this purpose so first of all you need is checking account.
2. A Savings account for your emergency fund
On this blog, we have talked so many times about how it is very important to have an emergency fund. What this means is that if you do not have an emergency fund it is time for you to do so because it is a must to have. This means that you need another account in this case a savings account so that you can generate an emergency fund.
A checking account is not a good fit for an emergency fund. A good emergency fund is at least 6 months’ worth of monthly expenses so that when the need arises you can dive into the emergency fund to solve it instead of going to borrow which can put you in debt.
Therefore the best place to have an emergency fund is a savings account which means that after having a checking account for paying off bills you need another account for your emergency fund.
3. Another checking account for other expenses
Whether you like it or not there will be other expenses that you are going to be taking care of which is why you need another checking account for tackling these expenses. It is not necessary that you use the already existing checking account that you use for payment of these to make these other expenses.
All other expenses other than payment of these should be done from this checking account. It is very important to have another checking account for these expenses because you do not want to use the money you have already budgeted to payment of bills for these other expenses.
Some of these other expenses include entertainment, meals at restaurants, or gifts for friends and family.
4. Another savings account for other goals
There are so many reasons why a person would want to save money these reasons are basically unlimited. And it is wise to have multiple savings account for various purposes so that you can easily save and keep track of them without mixing them up.
So if you are going to be saving for something like building a house, getting a new car, and others you should have separate savings account for these.
In total, you are going to be needing at least four different bank accounts for your financial needs. So depending on the needs of your financial situation and what you are going to be saving for you need to have more than one bank account.
How many accounts do you need bank?
Having more than one bank account is totally dependent on your financial situation and what you want to be doing with your money. An expert has recommended that depending on your financial situation you should have at least four bank accounts. These accounts are for different purposes all of which are basically financial.
Is it good to have more than one bank account?
Having more than one bank account is something that will be beneficial to you and you alone. This is because it can help you say for multiple goals and carry out various things at the same time such as payment of bills and making payment for other expenses. The number of bank accounts that you need to have is totally dependent on you so you need to have at least four.
Is there a downside to too many bank accounts?
The answer to this question is a very big yes there is a downside to having too many accounts. One of the downsides to having too many accounts is that you might not be able to keep track of them all. Which can defeat the purpose of having more than one bank account. So you should not have too many bank accounts that you cannot keep track of.
How many accounts should I have to save money?
Saving money is what both the rich and the poor people have to do so when it comes to saving money everyone is involved. We all know that having a savings account can help you save money but having multiple savings accounts can help you save for various purposes. which means it is good to have more than one savings account.
How much should a 30 year old have in savings account?
There is no specific amount of money that a 30yreas old person should have on his or her account. But there is a general rule of thumb that states that you should have at least 6 months’ worth of expenses saved up in your savings account. Whether you are 30 years or below you need t have this amount saved up.