There are PLENTY of people who operate with one checking account and one savings account and they do just fine. But me, I am not one of those people. You see, there was a period of time where I had plenty of money to spend on fun things, and then when it came time to pay the bills I was taking money out of savings. Yes. Me, Financial Coach, Jenna. So I did exactly what I recommend my clients do...switch it up. Try something different. Here's what I do now.

I currently have two checking accounts and two savings accounts. I also have a credit card or two but we're currently like Ross & Rachel (emphatically on a break, in case you were wondering).

1. Checking Account #1-Mortgage & Spending

This account is the one that receives my direct deposit on payday. And the most important bill I have is my mortgage. So that beautiful house of mine gets first dibs on the dollars around here.

I typically get paid twice a month, so I set aside half of my mortgage payment each payday.

After that money is set aside, I turn my attention toward my bill account.

2. Checking Account #2-Bills

This is a separate checking held at a separate financial institution. Not because that is required or even a good thing, but rather because I've had this account for over a decade and all of my bills come out automatically and I'm too lazy to change it. Jazz Hands

Every Tuesday before my Friday Payday, I sit down and write out all the bills that will need to be paid the coming pay period. I write them down, I add them up, and then come payday, I transfer that amount from my first checking account. The whole thing takes approximately 3 minutes. I also transfer money over to savings and/or pay the credit card I have for cash rewards & pay off each time I get paid to avoid carrying a balance. (Spoiler alert-I did catch myself getting too close to carrying a balance...hence the break.)

After the "bill money" is set aside, I turn my attention back to my "spending" account. Groceries, gas, eating out, entertainment, hair & make-up etc. get paid from here; basically any categories I could eliminate or greatly reduce if things got really tight.

3. Savings Account #1-Short term/Minor Setback Fund

My goal for this account is $1000 and I keep it easily accessible. In the past I've used it for birthday gifts I didn't properly budget for; a broken garage door, a Halloween party that cost more than I anticipated, and bail money (that's a joke but it's also what I have named this account in YNAB because it makes me grin). I've also used it for concert tickets & then paid myself back.

I view this account as an extension of my checking account, but with a self-imposed minimum balance. If I spend money from this savings, I pay it back within a month.

4. Savings Account #2-Long Term/Oh Sh*t Fund

This is the account where I send money and NEVER think about it again until it is time for it to fulfill its purpose. Typically, I don't withdrawal money from this account for 6+ months. In the past, it is where I parked money for a downpayment on a house, a Hawaii trip (which didn't happen--thanks COVID) and now I'm using it to fund a kitchen and bathroom remodel.

The exception to the 'never think about it again' rule is if there were to be an emergency of sorts. The kind of emergency that requires an insurance deductible. It's a safety net, but one I try incredibly hard not to rely on. The only time I would take money from this account is if I needed the funds from my $1000 account and then some. Full disclosure, I would take advantage of a 0% credit card promo before I took money from this account.

I used various combinations of checking & savings accounts but for me, keeping the money for bills and spending separate has really helped me reign in impulse buys and it also ensures that my bills are always paid.

If you'd like to see how you can build a budget (no matter how many accounts you have) check out my workbook Bite Size Budgeting.