The Reason You Should Have More Than 1 Bank Account

Many of us grow up using one bank account and never seek to understand why it is important to have more than one. We set up a checking account for direct deposit and pay our bills from it all at the same time. The problem with this is, it often leads to the mismanagement of funds.

Back in college, I can’t remember how many times I overdraft my account because I thought I had a certain amount of money and then all of my pending charges posted.  I promise it’s one of the most devastating feelings ever lol. However, that isn’t the only reason you should consider opening another bank account but here’s a few why you should.

These are the benefits of opening another bank account

Automation – It’s easier to save money if you can automate the process. You have your payroll direct a set amount of your income into separate account before you get paid. This is extremely helpful if you suck at budgeting

Organization – Avoid overdraft fees by having a specific account to pay your bills from, another to save money(automation) and maybe even an account that you can set aside money for to have fun on the weekends.
EX: I have a savings, guilt-free spending account (for fun/entertainment), my uncle sam account (for bills) and a vacation account (for traveling).This keeps me from ever overspending in any of my categories.

***You don’t need this many but I recommend following the structure***

Almost forgot to mention!

Relationships – Establishing accounts with different banks can help you build relationships with banks. Which will make it easier to get applications approved in the future such as car loans, credit cards or mortgages. ( I love credit unions). This can also be useful when looking for the best rate on finance products because you’ll have more options to choose from.

Fees – Some banks offer an account with no monthly minimums and 0 atm fees worldwide! This is beneficial if you find yourself always having to take out cash. (Do your research) This can save you hundreds of dollars and offer you the convenience you need from an institution. My primary bank Charles Schwab offers this service as well.

And Finally

Last, but not least having multiple bank accounts will allow you to have multiple debit cards. This is cool because you label them by account on the back of the card like I do. This also allows you to control what you spend because by carrying your (Guilt-free spending card) on the weekend it will train you to  understand that once the balance is gone your done for that week. (If you go over budget you may get embarrassed when your card declines in public lol) **Growing Pains**

It also gives you a separate card for your bills which means you’ll always pay on time and never overdraft your account because the money will always be allocated properly. Not mention your savings will continue to grow without interruption (which is awesome) because we will eliminate the possibility of ever overspending by automation into a separate account.

And this why I say you should have more than 1 bank account!

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