4 bank accounts you should have

Are you struggling to reach your money goals?

One way to help you keep on track with your finances and also make assessing your spending easier is having specific bank accounts for specific expenditure. Me and my partner personally have quite a few bank accounts, however I think there are 4 basic categories in which you should split your finances.

Why do I need more than one account?

Before we dive into why I believe you should have at least 4 bank accounts its probably worth me explaining why I personally think one account could be hindering your financial goals.

Firstly there is no separation between what is savings and what is for spending, though you may have a budget telling you where every penny should go there is no clear line in one account which tells you once you have reached that limit.


An account similar to Monzo which allows you to separate your money into pots for different items is a great start if you are not yet ready to branch out into multiple banks, but again the premis of separation is there.

What are the 4 categories for bank accounts

1 –  Every Day Spending

This account should be for your non-essential spending or for the ‘fun’ part of your budget. Whether its treating yourself to a shopping spree or a night out with the friends this debit account is where you will find all your funds.

By having this debit card separate from your saving and expenses it will make it a lot harder to go over on your budget because you have to physically move the funds from one bank account to another.


2 – Expense Account

This account tends to be where your paycheque is sent. This way you can keep the total of your budgeted bills and direct debits including phone, rent and insurances to be deducted in a no fuss manner and then split the remainder between your other accounts. This account will basically be on ‘auto pilot’.

3 – Emergency Fund

An emergency fund should be a super easy access account that you can dip into when there are genuine emergencies, such as loss of a job or your car unexpectedly breaking. As suggested by a number of renowned financial gurus this account should hold at least 3-6months worth of expenses.

You can also separate this account further by including sinking funds. Sinking funds are payments which are expected, however do not occur every month; such as birthdays, car repairs and appliances requiring replacement. 


4 – Goal Account

Trying to save for a dream vacation or maybe a house? Hold these savings in a separate account, for longer term goals opt for a higher earning savers account such as an ISA or Fixed term saver which tend to offer better interest rates.

Separating your goal savings from your spending account will help keep you motivated to save whilst also preventing the option of overspending on a ‘treat o’self’ moment.

Do you use multiple accounts to manage your budget? Let me know how you manage your monthly spending in the comments below!

Find this post useful? Share this on Pinterest, so you have these tips for a later date!



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s