How Many Savings Accounts Can I Have

How Many Savings Accounts Can I Have – How many savings accounts do you have (and should you have)? Disclaimer: This post may contain affiliate links, which means that if you click and make a purchase, we will receive a commission (free of charge to you). Please read our affiliate disclosure for more information.

Wondering how much savings you can afford? We’ve got your answers, along with the top 7

How Many Savings Accounts Can I Have

In this day and age, with many different reasons to save money, it can be useful to spread your savings across multiple accounts. But if you’ve never done it, it’s normal to have financial questions. Actually, before we go any further, I would like to answer a more specific question: How many savings accounts do you have?

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There is no limit to the number of savings accounts you can have. In fact, splitting your savings into multiple accounts can be a great way to keep your finances in order. In addition, most experts recommend setting up at least 2 savings accounts – one for everyday living and one for emergencies.

In other words, by creating multiple savings accounts and setting specific goals for each one, you can adjust your finances and make sure you’re prepared for whatever life throws at you.

In the following sections, I will cover the different savings accounts that you may want to open. But before you create these accounts, it is important to understand that all savings accounts are not created equal.

You see, one of the most important features of a savings account is the interest you get on your money. And while every savings account offers some type of interest, some accounts offer better rates than others. Seriously, it can add up to hundreds of dollars a year.

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So, if you are looking for a savings account guide, here at Be The Budget we recommend CIT Savings Builder. With low opening deposits, online convenience and great interest rates, this is one of our most popular savings accounts.

Okay, now that we’ve gone over the importance of opening a savings account with a good interest rate, let’s get into the different savings accounts you should open.

First, you should set up a savings account for emergency expenses. You see, I don’t care who you are, how much money you have, whether you drive a nice car, or how healthy you are, at some point you will face financial difficulties. And it is important that you prepare for it.

As a rule of thumb, you should have at least 3 to 6 months of your living expenses in your emergency fund at all times. I can not emphasize this enough!

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Think of it this way, if you suddenly lose your job, do you have enough money to last you a few months until you find someone new? If not, you should set up a savings account specifically for your emergency fund and fill it with good cash as your number one financial priority.

Saving for an emergency may not be the most fun financial task, but if one day you have to rely on savings to pay your bills, you’ll be thankful you did!

If you like to go on vacation or explore the world, you should create a savings account specifically for this purpose. In my opinion, this is the most fun savings account you can open because you can use it with fun and relaxation.

Plus, if you have a savings account specifically for travel, you can take a guilt-free vacation, too. But if you don’t separate your travel funds from other savings, it can be difficult to just spend them on vacation because you feel like you’re taking them away from other important areas of your financial life.

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It’s no secret that when you own a car – assuming you want it to last a long time – you will have to pay for some maintenance and upkeep. That means oil changes every few thousand miles, tire rotations, new tires, tune-ups and more. And since the car comes with a lot of expenses, it is important to save them.

Also, if you have a desire to buy a car in the future, you should save money to pay for it. And it is better to have a specific place to store these savings.

Just like saving for a car, if you own a home, you have all kinds of expenses to pay. Between regular maintenance and upkeep, to big projects like landscaping and home improvement, putting money away every month is a good idea. And if you want to do that, it’s a good idea to split those funds into your own separate accounts.

Think about it this way, if you have a large savings to cover everything from household expenses to emergencies and you decide to renovate your kitchen, it will be a little easier to dip into your emergency savings to pay for it. For desk and cabinet improvement.

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In other words, if you want to make sure your household expenses stay within reason and avoid stealing from other areas of your financial life, a household savings account is a good idea.

If you’re doing it yourself, saving money for taxes should be one of your top priorities. And seriously, you don’t want to mix these funds with other areas of your business.

Taxes, although they can be difficult to pay, are not negotiable. And you don’t want the IRS knocking on your door asking for it. So, if you own a business, or are paid as a 1099 (which means you have to take care of all the taxes yourself), then you should definitely set up a savings account.

Throughout your life there are all kinds of big purchases and events that you will have to pay for. I’m talking marriage, new baby, graduation etc. And while you may never know exactly when these events will happen in the future, it is important to start preparing for them early.

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For example, my wife and I just had a daughter, which means we may be paying for the wedding in the next 20 to 30 years. Now, we’re not sure when that day will come (or how many boyfriends I’ll have to hit before she finds the right guy), but if we open a savings account and start saving for our wedding right now, Ms. The big day will be a long financial stress.

But just like weddings, there are many other events and celebrations that you have to save for. And if you have a dedicated savings account for the really big ones, it makes them more palatable.

Here we love every holiday that comes our way. After all, if you have the opportunity to celebrate something, why not?

But the thing is, there are holidays, birthdays, parties or celebrations of any kind, usually there are some costs associated with it. And it’s in your best financial interest to save money, especially for these expenses.

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Therefore, if you want to be financially prepared, you should set up a savings account specifically for holidays, gifts and holidays and contribute some money every month. Trust me, you will have to pay all kinds of expenses like this throughout the year, and having this fund will make your life a lot easier!

So how many savings accounts do you have? Also, what are they for and how long have you been splitting your savings into multiple accounts? Don’t forget to comment below.

About the Author Zach Buchenau is a self-proclaimed personal finance expert. When he’s not writing about budgeting, getting out of debt, making extra money, and frugal living, you can find him building furniture, fly fishing, or developing websites. He is the co-founder of the company and the most loyal customer of Chipotle. Content contains links to our advertising partners. When you read our content and click on a link from one of our partners and then decide to complete an offer – whether it’s downloading an app, opening an account or taking another action – we may receive a commission from that advertiser at no additional cost. you

Our ultimate goal is to educate and inform, not to encourage you to sign up for certain offers. Compensation from our partners may affect the products we cover and where they appear on the site, but does not affect the purpose of our reviews or recommendations.

Should I Have Multiple Savings Account?

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