Minimalism is all the rage in the modern world. But sometimes, less isn’t more. Many people still use one bank account for everything. While operating out of one single bank account does help to keep things simple, it’s not the most effective system for growing your money each month. 

Why you need more than one bank account

Having one bank account gives you the impression that you’re actually richer than you are. While that money is in your account, you actually have far less disposable income than you think. Most of that money already has a job to do, like keeping a roof over your head, food on the table and helping you get to and from work. 

Just like you, your money needs a good work life balance. This means it’s time to split up your funds into money that has a job, money that needs to grow, money for emergencies and money that you can spend.

For your bills 

Everyone needs a standard checking account to receive their income and pay bills. This account will take care of all your fixed expenses. Fixed expenses are bills that are the same price every month. Work out how much they will cost you over a year, divide by 12 and simply transfer that amount at the beginning of each month and you’ll never need to worry about missing bills again. 

For your expenses

This can be the account for your fun money and day to day expenses. Keeping an account for stress free spending is great because you know that your balance here can be used for anything without feeling guilty. 


For your emergency fund

Building an emergency fund is the easiest way to stay out of debt. This is money that you save in case you get hit with an unexpected bill, can’t pay your rent or end up unemployed. It can feel annoying to put aside money each month to build up an emergency fund, but it will be the difference between taking on debt and easily paying your way when disaster strikes. 

For your long term goals

Time catches up with us all, so it’s best to start thinking about what you can do with the least amount of effort to get the maximum payoff down the line. Whether this is saving for a car, retirement or to make a downpayment on your home, this is where your funds should go. If you’re working on multiple goals at once make sure you track them independently. 


Having one big bank account seems like the most logical option for getting your financial health back on track, but it can end up costing you more in the end. Setting up a bank account is now faster than ever and technology means you can easily balance, maintain and use all four on the go. Make sure your money gets the motivation it needs to do its job and keep it where it can work best.