As we continue in our personal finance journey, we may find it more practical to open different accounts for different purposes or goals. Imagine if you put all your money in a single bank account, how do you think will you be able to track how much you have saved for a specific goal?
I think it makes better sense if we track those savings goals in different accounts.
Here is how I organized my savings goals in different accounts.
- BPI Pamana – This passbook account contains my emergency funds. This has three to six months worth of my living expenses. This is what I would call the mega emergency fund and is not tied to an ATM card.
- BDO ATM account – This ATM account contains my general savings. It acts as a local emergency fund. Whenever my daughter needs extra money for her school assignments or projects, I would just transfer money to her debit card through online banking.
- Gold ATM account – This is tied to my checking account. This is used for tuition fee payments.
- BPI Debit Card – This is where I save the child support that is being remitted on a monthly basis.
For me, this is more manageable. It makes my life easier. =)
How do I fund my local emergency fund? Each month, after I put money in the different envelopes, I deposit the excess money in the BDO ATM account. That way, I am able to fund my daughter’s other school miscellaneous expenses especially when their club has photoshoots.
I have realized that I still lack one bank account. I would need another ATM card or passbook savings account for my passive income. Admittedly, my passive income is being deposited in my BDO ATM account, which should not be the case.
Come 2019, I will be opening another bank account for that purpose.