Why to Use Different Bank Accounts for Bills, Spending, and Savings


Account CollageImage sources:  Hill and Hammond & Monarch House & GoBankingRates.com

We have been doing this little trick for 2 years now, and I don’t know how we would keep our money straight without it.

We have (1) an account for set bills, (2) an account spending, and (3) an account for savings.

Yep, three accounts. How does it work? First, we get our direct deposits into the spending account. From there we calculate all the bills for the month and transfer money to our “bill” account. On the bill account we have automated all payments. This account does not have a debit card and we can not spend money from this account on anything but bills. The left over money in our “spending” account is for gas, food, and going out. Right now we have about $.17 in savings because we are living pay-check to pay-check. Yeah, better hope nothing bad happens. We would be fucked!

So, to break it down even easier and with the actual banks we use:

  1. Set up a Chase Account [or another national bank] for your direct deposits. There are a ton of free money when you open a few account with national banks. Look online or in the mail!
  2. Once you get paid, transfer the bills money to a bill account. We have been using Capital One 360 [formally ING Direct] which is a free online bank and sends checks for free. You also earn APY on money in your checking account. That is pretty unheard of. If you want to join, use this link and it will be a referral for you and I. Or use this link for a $50 reward.
  3. The left over money in Chase is for spending. Once we run out, we run out. But we also never have to worry about if we have enough money for the bills.

Done! Do any of you have good tricks for managing your money?

love, Sarah

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One thought on “Why to Use Different Bank Accounts for Bills, Spending, and Savings

  1. Pingback: Budgeting Essentials for Women from “On My Own Two Feet” | The DIY Librarian

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