Stop Using 7 Bank Accounts—Do This Instead

I know there are many financial coaches out there, each with their own style and approach. But one thing is clear: there has to be a balance between goals and execution. Simplicity is key.

Setting up multiple bank accounts—even if they’re automated—can become overwhelming. It might cost more in fees, and worse, you could lose track of where your money is actually going.

Instead, here are two simple systems that can bring you clarity and control:

System 1: Chequing First, Then Allocate

1. All your money goes into your main chequing account.

2. You automatically transfer a portion into:

   
   

   • A savings account

   • Short-term investment accounts

   • Long-term investment accounts

   
   

This system is classic and effective. Your main account serves as a catch-all and dispatch—money comes in, and is sent to the right places. The most important element? Automate your savings and investment transfers. Set it and forget it.

System 2: Save First, Then Spend

1. All your money goes into a savings account.

2. From there, you transfer only the amount needed to cover your fixed or committed expenses into your chequing account.

3. Variable or uncommitted expenses are paid from a separate account, allowing you to clearly track and manage flexible spending.

The goal of this system is to increase awareness of your variable spending, which is where most overspending and debt tend to happen—not in your fixed expenses.

Which One Is Right for You?

It depends on your goals.

• If you’re focused on saving first, System 2 may be best.

• If you’re looking for simplicity and automation, System 1 is a great place to start.

Personally, I lean toward save first, spend later—but both approaches can work depending on your financial habits.

Need Help Creating a Personalized System?

I’m currently working on a certification that will allow me to guide clients more precisely on spending breakdowns. While I once promised myself I’d never tell people what to spend, I’ve realized that offering insight can be empowering—and often more helpful than expected.

Want to explore a better way to manage your money? Reach out—we’d be happy to help.