Saving money is not a singular pursuit.
Take a minute to think about everything youre saving for.
A down payment on a home.
Cash for that overseas vacation.
Funds to tap in case an emergency arises.
Chances are youre stacking money for several things at once, and those are just the short-term goals.
We wont even get into long-term objectives right now, like saving for retirement.
You probably park your short-term savings in a regular ol savings account … or several.
Other people get overwhelmed moving money around and give up on the whole idea of saving.
There is no one-size-fits-all recommended method.
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So whether you have one account or a dozen, youre not doing it wrong.
Fo Alexander and her husband Ben, of Greenville, South Carolina, have seven different savings accounts.
One is for theiremergency fund.
Another covers future home repairs or upgrades.
Two accounts are for general savings.
The other three are business related.
Different financial institutions offer different perks.
Some banks offer cash bonuses to open new accounts, another lucrative perk.
You and your partner or spouse might want to maintain separate savings accounts for personal goals.
Multiple accounts might also make sense if you want separate savings for each of your children.
Most savings accounts restrict how often you could withdraw money from your account.
If you plan on making more than the maximum monthly withdrawals, having multiple accounts would be an advantage.
Putting a name to your savings increases your likelihood of success, Alexander said.
She also recommends automating your savings allocations if you cant keep up with making manual transfers.
Sticking With the Simplicity of One Account
Not all savers go the route of having multiple accounts.
Among the different things theyre saving for, the Sutherlands regularly put money aside for vacations.
Sutherland said having multiple accounts on top of the budgeting system he uses would be redundant.
Some savings accounts have requirements, like keeping a minimum balance.
It could be easier to meet those requirements if your savings are in one account.
Youll miss out on potential earned interest by dividing your money into accounts that have different interest rates.
Youd have better returns if you saved your money in onehigh-interest account.
Even when your financial goals change, your savings account will always serve a purpose.
Sutherland recommends using budgeting software that allows you to set up sinking funds.
You also dont have to save for all your goals simultaneously.
No matter how you do it, the most important thing is that you make saving money a priority.
Nicole Dow is a senior writer at The Penny Hoarder.
She is saving to pay off debt and buy a house.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
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