Financial Growth: Having Several Bank Accounts
In trying to build our finance like I read about very well on this platform, we need to open different types of bank accounts that will serve different purposes and with that we will be able to divide our account types categorically and know what particularly we are using each of them for. I used to think there was no point in having numerous accounts until I discovered that having these accounts and being blank about what each of the accounts will be used for will really help our financial growth.
Have an account for self-payment.
This is probably not the first time you are hearing about the necessity of paying yourself first, we are easily consumed with meeting the needs of others and we totally forget about our personal needs, there is a strong need to pay yourself first after every earning, take a portion from that money and put in a separate account designated for yourself to meet your needs.
Have an account for personal savings.
There is a need to have an account where you simply put in some extra money you might not need for the main time. You just put the money there and forget that the money never existed. This is an account type that you do not obtain a debit card for because you just want to put the funds there and forget about it because you are trying to build some sort of saving habit.
Have an account for emergency.
There is a need to have emergency funds all the time, these emergency funds are supposed to cover up for us in emergency situations, open a different savings account for your emergency fund and label it as such. Let the emergency fund in that account be able to sort out your needs for six months without any additional income and you want to make sure that you touch the funds in that account only when there is indeed an emergency.
Have an account for daily expenses.
We have learnt the need for paying ourselves and daily expenses are ever on the rise, if we do not learn how to control those expenses, we will realize that we have spent all that we have even before the end of the week and that is not an healthy way of building finance, classifying our expenses and fixing it in an account where we will take from on a weekly or monthly basis will help us become really accountable.
I am that type of person that don't fancy multiple account holding. How am I going to manage it all. But anyway, it is good having it especially when you are a business man.
This is a very good point but I also suggest that the type of accounts we plan to hold should be a good savings account with a profitable interest rate and not the one with multiple charges.