FINAL ANSWER
A budgeting expert reveals just how many bank accounts you should really have for your financial goals and bills
A BUDGETING expert has revealed just how many bank accounts you should have depending on your financial goals and bills.
TikTok user Ellyce Fulmore revealed the magic number that will allow you to pay off your bills in time, while also having fun throughout the week and saving money.
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In an interesting and informative , the Millenial Coach, as she is known, 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
First up, the bill payment account is "where all of your bills are going to come out of," she explained.
This can be with your regular bank and you could also apply for a credit card with the same bank.
Just make 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
Next up, the daily spending account will be used as "your allowance", Ellyce explained.
This is 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
Ellyce said a short-term savings account should be used for your emergency fund and anything that you might be saving for in the next five years.
She added: "This should be in a high-yield savings account."
These accounts usually generate extra interest and you'll end up with more money than your originally put in.
Long-term investment account
This account is specifically reserved for investing in the stock market or your 401K.
Examples of this in the US are an IRA, a ROTH IRA, TSFA, or RRSP.
Usually, full-time employees get these benefits through their employers.
Meanwhile, Brits can put the money in a pension, stocks and shares Isa, Lifetime Isa or a general investment account.
As with any investment, keep in mind that making money is not guaranteed and you may actually lose the cash you put in.
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