Why Budgeting Can Be Hard to Stick To
Many people want to save more, spend less, or get on top of their bills. Budgeting doesn’t always come naturally. Even if you write out a plan it’s easy to overspend or lose track when all your money sits in one account. You might forget about upcoming bills, dip into savings without meaning to, or not realise how much you’ve spent on non-essentials.
That’s where using multiple bank accounts can help. It’s not about complicating your life — it’s about creating clear boundaries so your money works the way you want it to.
How the Multiple Account System Works
The idea is simple: instead of having all your money in one bank account you spread it across several, each with a different purpose. This makes it easier to see what’s available to spend, what needs to be saved, and what must be kept aside for regular bills.
Most people start with three or four basic accounts. Here’s a common setup:
1. Bills Account
This is where you keep the money for rent, mortgage, power, internet, insurance and subscriptions. Anything that comes out regularly should be paid for out of this account. As soon as you’re paid you transfer the total amount needed for bills into this account and leave it there. You can do this transfer manually or set up an automatic direct debit so you don’t have to think about it. It is also best to set up direct debits so your bills are paid automatically.
2. Spending Account
This account is for everyday things like groceries, petrol and takeaways. Once you’ve paid your bills move a set amount into your spending account. This is your weekly or fortnightly allowance. But remember, once it’s gone it’s gone! It creates a natural limit to help prevent overspending.
3. Savings Account
This account is for your future goals. Whether you’re saving for a holiday, emergency fund or house deposit, keeping this money separate makes it harder to touch. Some people set up automatic payments on payday so a portion goes straight into savings without needing to think about it.
4. Fun or Treat Account (Optional)
This extra account can be used for guilt-free spending. You could use this account for things like clothes, dinner out, hobbies or entertainment. Knowing you’ve already paid bills and savings this money is truly yours to enjoy.
Why This Method Helps You Stay on Track
When all your money is in one place it’s easy to underestimate how much you’ve spent or forget what’s already allocated for bills. By separating your money into different accounts you make each dollar work harder and reduce the chances of unplanned spending.
It also makes budgeting feel simpler. You don’t need to track every little expense, you just check the balance in your spending account. If there’s money there you can spend it. If not you wait until next payday.
Setting It Up: A Few Practical Tips
You can open multiple accounts at most banks with no extra cost. Check your bank’s app or online banking options. Many banks let you nickname accounts which makes things even easier (e.g. ‘Rent + Bills’, ‘Spending’, ‘Savings’).
Once your accounts are set up take 30 minutes each payday to transfer money where it needs to go. You’ll quickly get used to this new rhythm and it’ll become a habit that makes your whole financial life feel more in control.
A System That Grows With You
One of the best things about this method is that it’s flexible. As your financial situation changes with a new job, new flat, new goals the you can adjust your accounts. Maybe you’ll open a separate savings account for a holiday or a second spending account just for groceries. You can build a system that suits your life and helps you feel confident about money.
You don’t need to be perfect. You don’t need fancy tools. Just a few separate accounts and a regular routine can go a long way toward reducing money stress and helping you make steady progress.
Make Your Money Easier to Manage
Budgeting doesn’t have to be complicated. You don’t need to give up your morning coffee or social life to take control. By using multiple bank accounts you give yourself a structure that makes good financial decisions easier.
Instead of wondering where your money went you’ll know where it is. Small changes can make a big difference to your confidence, your goals and your peace of mind.