Consider Multiple Saving Accounts To Build Security

July 27, 2017

Dreamstime

One of the biggest challenges of any household are the finances.  With nearly seven out of ten American families having less than $1,000 in savings, most of us are living paycheck to paycheck.  Perhaps the key to building a hefty nest egg is to have several savings accounts.  That's one avenue some financial experts suggests.  Most people have one savings account and one checking account.  Although it would appear the simpler your finances are the better, the reality is you dip into your savings because it's visible and available.  So consider opening up other accounts to divide your savings for specific purposes.  For instance, set up a vacation account, a fun money account, a tax account and a true savings account.  Considering most of us use direct deposit, have a set portion of your pay go to each account.  The idea is that once your "fun money" bucket is empty, you are done spending.  Your vacation account has $3,000, so you know that's your budget; all while leaving your savings account alone to build up some security in case of an emergency.

SOURCE: Two Cents

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