Does Having Many Accounts Motivate You To Save?

Discussion in Bank Accounts started by Denis Hard • Nov 6, 2015.

  1. Denis Hard

    Denis HardWell-Known Member

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    One blogger advices his reader to open a number of bank accounts because it will make saving money easier for them. The blogger believes that if you have at least three different accounts:

    - one account for savings [for future large purchases, a vacation, etc].
    - one account for saving money you intend to invest
    - one account for emergency savings

    If you are disciplined enough, you'll spend the money in those accounts for the specified purposes ONLY. And it would keep you out of debt forever.

    It certainly does sound like it can work.

    Your thoughts?
     
  2. gata montes

    gata montesActive Member

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    As there so many different saving strategies flying around these days - as well as just as many mixed opinions as to which one is best.

    For example - there are also many financial experts who recommend quite the opposite - as they have found that those who have multiple accounts tend to spend more compared to those who have only one account - the reason being that - as those who have a single account know exactly how much money they have and are therefore unlikely to distort the account information to justify spending - they spend less and save more.

    My thoughts are that - although I can see how this method might well prove useful for someone with multiple savings goals - I do think if planning on spreading savings into multiple accounts - it would be well be worth considering - not only the possibility that it may incur extra fees - but also that it may prevent those savings earning a high rate of interest - particularly as the interest paid on most savings is normally pretty low and its generally only large account balances - that generate a higher interest rate.

    To be honest as there are pros and cons to both methods and there is no one size fits all solution to saving - as everyone's personal circumstances differ - the best savings strategy in my mind - is the one that suits each person individually - as that is the one most likely to be successful.
     
  3. missbishi

    missbishiWell-Known Member

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    Lol, I barely have any savings at all, let alone a pot of money set aside for investments. That's why I'm on a forum called "Don't Pay Full"!

    I'm not sure this method is viable for those living on the breadline. Could be beneficial to those with plenty of disposable income but I think a more realistic approach is needed for the average Joe.
     
  4. Corzhens

    CorzhensWell-Known Member

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    Not to brag, I have several bank account and credit cards. For the cards, they have specific uses like one for groceries, one for car's gas, one for dining out, etc. As for bank accounts, I have a lifetime account which has my lifetime savings - this is not to be withdrawn. Another is for emergency and another for regular use. I deposit money depending on my financial capability.
     
  5. Lushlala

    LushlalaWell-Known Member

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    I think having any more than two bank accounts would put too much pressure on me, and only lead to stress as I don't really have enough money to spread around. I only stick to a savings and current accounts. We tend to use the current one for living expenses and day to day stuff, while we put money in the savings for a rainy day. As it stands, we aren't able to save much because it's almost like a hand-to-mouth existence for us right now :( Maybe when we have more money, this is a route we'll consider.
     
  6. DrRipley

    DrRipleyExpert

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    I do find it helpful to have separate accounts but I tend to separate them in my own way. I have one which I am free to touch at any time so I withdraw from it as I please and one I keep as if it were locked in a safe and I tend to never touch it. I'm satisfied with just two for now but that may change in the future. I think having three is a bit much but if it works for that person then I don't see much wrong with it.
     
  7. sidney

    sidneyWell-Known Member

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    I think 3 accounts is excessive already, I think if the person is really determined to save then 1 savings account will do. I have 2 bank accounts and 1 got inactive because I only used 1 of my 2 bank accounts.
     
  8. xTinx

    xTinxWell-Known Member

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    In the past I thought it was not possible to feel motivated having several bank accounts at the same time. In fact, it seems confusing and kind of difficult to maintain your focus. Now, I have completely changed my perception. Having multiple accounts actually help you organize. That is why it is important to have "purpose." Each account should be designated for a particular financial concern - bills, freelancr gigs, personal savings, business interests and so on.
     
  9. DiscountDreams

    DiscountDreamsActive Member

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    It does only insofar as to make me forget about money sometimes. At the moment no, I have tabs on it all, but there was a time where I was like woooooooooooooooooooah I forgot I had all this money :O
     
  10. remnant

    remnantActive Member

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    I have multiple accounts and the best you can get from them is a sense of belonging and nothing more. They are more suitable if you have multiple income streams and each account should be assigned to a different stream. But it would not be easy to manage your transactions. I think if it were possible, one should have multiple accounts in the same bank.
     
  11. Onionman

    OnionmanActive Member

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    If you do have multiple accounts, I just think it makes sense for each account to have a very defined purpose. Otherwise you're simply diffusing your focus and probably not benefiting from the best interest rates. I've got a couple of accounts for very specific purposes, though I could probably be more disciplined in how I manage the money in them.
     
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