 TITLE: How to Budget Using Multiple Accounts CONTENT: How Does Budgeting With Multiple Accounts Work?\n-----------------------------------------------\nMerely allocating money from your paycheck to multiple checking and savings accounts can be an effective budgeting strategy—no fancy tech or ongoing expense tracking necessary. Here are three ways to do it:\n*   **Fixed vs. variable expense accounts**: Using this strategy, you'll create two checking accounts and one emergency savings account (you can always make more savings accounts for specific goals if you wish to). One checking account will be for fixed expenses that don't change each month: rent or mortgage payments, insurance, utilities, gym membership fees, minimum debt payments and so on. The second checking account will be for expenses that can change from month to month, like groceries, meals outside the house, concert tickets, clothing, gas and others. Your third account will be your emergency savings account, which should be linked to one of the two checking accounts so you can easily transfer money there if necessary. You'll split your paycheck into these three accounts each month. The goal is to get a better overview of your spending and to easily limit variable-expense spending if needed by transferring less money into that account.\n*   **Multiple savings accounts for different goals**: You can also choose to use your checking account for bills only, and to immediately transfer money out of your checking account each pay period into separate savings accounts. That can help get your income out of easy reach and give it a home before you can spend it. Some banks allow you to create separate sub-accounts for various goals, and in general, online savings accounts come with low enough fees that you can safely create many accounts at one institution. Consider creating separate accounts for emergency savings, vacations, a down payment, holiday gifts and car or home repair and making transfers to each one every month or every few months.\n*   **Separate and joint accounts with a spouse**: You may also consider multiple account budgeting when you're married or in a partnership and you share finances. In this case, each partner may have their own checking and savings accounts, plus a joint checking account for shared bills and a joint savings account for shared savings goals. That's a lot of accounts to keep track of, though, which could become overwhelming if you're not careful. But by setting up automatic transfers from your personal checking account to each shared account—and your own savings account for meeting personal goals—you can stay on track for the future while allowing for financial independence.\nNo matter which multiple-account budgeting method you choose, make sure you first understand whether the accounts you set up carry account maintenance fees, and if so, how you can avoid them. Additionally, be aware that your bank may limit the number of transfers or withdrawals you can make from a savings account. END