How Many Bank Accounts Do you Really Need???

How many bank accounts do you really need?  

Some finance experts will tell you to have a separate bank account for everything — bills, savings, vacations, emergency funds, groceries, cat food, and maybe even one just for your morning coffee habit. Pretty soon, you’re spending more time moving money between accounts and feeling overwhelmed trying to keep track of everything.  

I’m not going to tell you to open 47 accounts and name them all after your favorite song or drink. But while you’re getting out of debt, there IS a sweet spot. Enough accounts to give you control and clarity without needing a spreadsheet just to buy milk. That magic number is three." The #3 account is what changed everything for me. Big game changer. 

Hi it’s your friend Eva. On this channel we give normal financial information. We are shame and judgement free here. We are getting out of debt together. I’m not a financial adviser but I am an official Certified Financial Education Instructor. Any advice you find on the internet needs to be researched. There’s a lot of misinformation out there.  

Today we’re talking about bank accounts. I remember watching a video where the person stated they have 18 bank accounts for their sinking funds. This wasn’t entirely true. It was 1 account with 18 buckets. One of my bank accounts has that feature. This expert would transfer the money into the different buckets. So like $72 for car insurance, $90 for Christmas, $17.42 for school pictures.   

I do not have the time, the energy, or even the desire to do add this work to my already full plate. I’m about making my life simpler and harder.  

You need three accounts. That’s it, three. This doesn’t include investment and brokerage accounts.  

 Account #1  

Bills Account. Think of it as Your Financial Control Center.  

Purpose: This account is the hub for your day-to-day financial life. Your paycheck gets deposited here, and all your regular monthly bills are paid from here.  

What it covers:  

• Housing   

• Utilities (electric, gas, water, internet)  

• Insurance (health, car, home)  

• Groceries & essential household items  

• Transportation costs (gas, bus pass, etc.) If you take public transportation, see if your company has commuter benefits. Money is taken out pre-taxed, like 401K, FSA, dependent care. It lowers your tax liability.   

Why it’s important:  

If you’ve ever gotten paid on Friday and had no clue how much of it was already spoken for by bills, this account solves that problem. When your bill money is separate, you instantly know how much is available for spending versus how much is committed to keeping your life running.  

Pro Tip: Set up automatic payments from this account for your recurring bills. It saves time, avoids late fees, and removes the mental load of remembering due dates.  

Account #2. Sinking Funds & Emergency Fund Account. Your “Financial Safety Net”  

Purpose: This is your buffer against financial chaos. It’s one account, but the money inside has two jobs:  

• Sinking funds: Planned, non-monthly expenses. These are things you know are coming but don’t happen every month. Examples: car registration, holiday gifts, yearly memberships, school trips, or a vacation.  

• Emergency fund: Unplanned expenses that would otherwise wreck your budget — job loss, urgent car repair, medical bill, or busted water heater.   

Why it’s important:  

Most people fall back into debt because they didn’t prepare for these expenses. Instead of putting a $900 car repair on a credit card, you can pull from your safety net.  

Pro Tip: Keep this account at a separate bank or in a separate savings account that’s linked to your main bank but not in the same “quick transfer” screen. This extra step makes it less tempting to “borrow” from yourself for impulse spending.  

Account #3. Savings Account – Your “Future Builder”  

Purpose: This is where you start setting aside money for short-term goals and future opportunities, even while paying off debt.  

What it covers:  

• Starter investment fund  

• Celebration savings  

• Down payment for a home  

Why it’s important ad why it changed my life:  

Even if you’re in debt, saving something for the future shifts your mindset from “I’m always behind” to “I’m building toward something.” This helps you break out of the paycheck-to-paycheck mentality. Plus, opportunities pop up — and if you’ve got money set aside, you can say “yes” without wrecking your budget.  

You find out someone special is in town, you can go meet them.  

Pro Tip: Automate small transfers to this account every payday — even if it’s just $5 or $10. Watching it grow is a confidence boost and keeps you motivated on your debt journey.  

Let’s not over complicate getting out of debt. You don’t need 92 bank accounts. 3, just 3.  

How many accounts do you have? Put it in the comments. I love reading the comments.