A BUDGETING expert has revealed just how many bank accounts you should really have depending on your financial goals and bills.
TikTok user Ellyce Fulmore revealed the magic number that will not only make sure that you can pay off your bills in time, while also having fun throughout the week and saving money for your goals.
In an interesting and informative video, the Millenial Coach, as she is known on the platform, began: “We are going to talk about account organization and make this a hell of a lot easier so you’re doing any mental math to help you decipher how much you have left after your bills.”
Ellyce revealed that you want to have “at least four accounts.”
Bill payment account
“This is where all of your bills are going to come out of and only your bills,” she explained.
This should be with your basic bank and you could also apply for a credit card for the same bank, making sure to pick one with great benefits such as extra points for travel booking or eating out at restaurants.
She also suggested automating all of your payments to avoid any late fees or forgetting to pay a bill.
Daily spending account
Ellyce explained that this account will be used as “your allowance,” where you can take out money to spend on activities, clothes, going out to eat, and other things you might do for your personal gain and for fun.
This can be a second bank account with your regular bank.
Short-term savings account
She added that this account specifically will be used for your emergency fund and anything that you might be saving for in the next five years.
“This should be in a high-yield savings account,” she added.
These accounts usually generate tons of interest and you’ll end up with more money than what you originally had.
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Long-term investment account
This account is specifically reserved for investing on the stock market or your 401K.
Examples of this are an IRA, a ROTH IRA, TSFA, or RRSP.
Usually, full-time employees get these benefits through their employers.