Paying Yourself First To Save More

Multiple Savings Accounts

How many savings accounts do you really need? The answer is individual, but there’s no harm in having more than one if you have specific goals in mind. There is no reason you cannot have a retirement savings account, a rainy day account, a down payment for a new house account, and an emergency car repairs account. You have the freedom to save as much or as little as you’d like, but it’s helpful to separate your accounts when you’re working to make this program work. Savings is specific to some individuals and general to others, but applying a little to each account you need is a simple way to keep track of what you’re saving and how you’re planning for the future. You should have an emergency account with at least three months worth of expenses in it, for example, and anything above that is a bonus. Sit down with your family to discuss what’s most important to you regarding multiple savings accounts. No two families are the same, and you are free to make your own decisions regarding what you want to do with your income.

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