It’s an unfortunate fact that many Americans have less than $1,000 in savings. Not having enough money set aside for emergencies can be stressful and lead to financial trouble in the future.
You’ve all seen the statistics on how many people live paycheck-to-paycheck—but what is it that keeps them from building up your bank accounts? Many people think they don’t have enough left over at the end of every month to save money, but this is often not true.
It’s easier to keep track of your spending
One of the biggest advantages of having many bank accounts is that it makes keeping track of your spending easier. When you only have one checking account, it can be hard to see how much money is left in your account at any given moment.
You might have a balance showing on your mobile banking app or online banking site.
Paying bills is easier when you have separate accounts
You can set up automatic payments from your savings or checking account to pay bills. You can set reminders to make sure you don’t forget a bill, and when the date for payment arrives, you’ll get an email or text message. If you need to pay bills in person, you can use cash from a checking account instead of using credit cards.
How many bank accounts can you have? According to SoFi, “”The good news is, yes, it is possible to have more than one checking account.
You can build better credit by having multiple credit cards
With the exception of college students, many young people don’t have a credit history. If you’re one of them, it’s important to establish your first credit card now.
You can find great deals on travel credit cards that offer benefits such as free baggage and priority boarding, along with non-travel rewards like cash back or gift cards.
You can save more money by separating it between accounts
If you have multiple bank accounts, it’s easier to save money. It’s easy to lose track of how much money you’re saving if you keep all your savings in one account, but with multiple accounts, each one becomes a separate goal.
- The goal of building up an emergency fund could be in one account while saving for retirement is in another.
- You could set aside an amount every month into three separate accounts: one for paying off debt, one for buying a house and another just so that when the stock market crashes again, you’ll still have something left over.
You can take advantage of high-interest rates
If you’re looking to put money away, interest rates are a big deal. Depending on the bank and the type of account, high-interest savings accounts can be an excellent way to earn more money on your savings. Banks often offer higher interest rates for their most popular products, so take advantage by finding an account that best suits your needs.
There are many reasons why you should have multiple bank accounts, and the ones mentioned here are just a few. Having a separate account for your business is helpful in keeping track of all your business expenses.
Or maybe you have cash sitting around at home that could be put into an online savings account where it would earn interest instead of just sitting there doing nothing. Whatever the case may be, if you’re looking to improve your finances and save some money then opening up another account might just be what you need!