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Two Accounts = Simple Spending

November 11th, 2006 at 11:49 pm

OK...this is so simple I'm not sure why I didn't think of it before. I have a main checking account that I use for everything (paying bills, buying groceries, basically all of my spending via check/debit card). This past month I started using another of my checking accounts (it's free, there are no service fees) that basically has just been sitting there empty, as my "spending" account. I put a few hundred dollars into it at the beginning of October and now use it for my disposable income spending. Now bills and big items such as airline tickets, etc. come out of the main account and I use this new account to pay for gas, food, Starbucks, clothes, gifts, etc. This has really simplified things.

I keep a running total of how much is in this new account and it has actually stopped me from spending. Today I was at the mall and previously I would have used my main account to buy a few hundred dollars worth of clothes since there is always a lot more money in that account, but by using this new account with a limited amount of funds in it, I only bought a jacket (at 40% off the clearance price). It's nice having a seprate amount of money that I can use as I want while at the same time I am aware of just how much I am spending because there is so little money in there that I can't go on a major spending spree.

My next task is to link this account to PayPal and fill up the funds in this account by EBay sales, refund checks, etc. Hopefully I will be able to keep this account topped off without having to transfer funds from my main account.

4 Responses to “Two Accounts = Simple Spending”

  1. janH Says:

    Now that sounds like a great idea. I have three checking accounts. I could set up different accounts for different reasons like hurricane repairs, bills, spending cash. Hmmmmm........

  2. Amber Says:

    I currently have two checking accounts for that reason and I love it. I too often think twice about spending

  3. baselle Says:

    I use my brick and mortar savings account this way. Its kind of a collection "foyer" for moving larger chunks of money into ING, T-bills, DRPs, stuff like that.

  4. Broken Arrow Says:

    Excellent! Nothing wrong with using multiple checking accounts eh?

    Some do prefer sub-accounts, such as ones offered by ING, or others will split and track the money manually through a spreadsheet or with a PDA in my case.

    Still, I suppose that's what makes personal financing personal... because the best method is the one that works best for us individually. Smile

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