Skip to content

Personal Finance and Budgeting advise blog for Canadians and anyone who wants to stretch their dollars…

Menu
  • Home
  • About
  • 5 Principles for Budgeting
  • Advertising
  • Write for Us
  • Money Mastery Videos
  • Contact
Menu

Easy solution to reduce spending: two bank accounts

Posted on February 12, 2012 by budgetsense

Do you find yourself spending your paycheck within a few days and then nothing is left to pay off your bills, let alone for savings?

There is a simple solution: having two bank accounts.

One will be your central and main account, where your paycheck is deposited. You will use this to pay off bills. You will set this up to automatically transfer money to the other bank which is dedicated for discretionary spending. The amount you transfer will be determined by your budget of course.

The second one, will be just that, secondary, for discretionary spending. This is the money you can spend, without worrying about spending all of your money. As long as you separate your money-depending on what each one will be spent on-you won’t have to worry about spending most of your money on one thing and having little or nothing left for others (bills, saving etc.)

Alternatively, you can follow ‘envelope budgeting‘ and not worry about having to create two bank accounts.  With envelope budgeting, you withdraw the money as soon as you get paid and then allocate them-using a real envelope or something similar-to different categories.

Not to be ignored, this is all assuming you already have a ‘savings account’ to which you transfer money automatically.  If you don’t, you need to create one right away!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • The Budget-Friendly Alternative to a Staycation? Take a Road Trip! August 9, 2026
  • The Hidden Savings you get when Going on Vacations: the ‘Vacation Rebate’ August 1, 2026
  • 3 Untraditional Debt Reduction Methods That Actually Work July 26, 2026
  • Driving for Uber in 2026: Is It Still Worth It? What You Need to Know July 19, 2026
  • Buying a Home in Canada in 2026: What Every Buyer Needs to Know Before Taking the Leap July 12, 2026
  • Jan 1st to July 1st:Where Do you Stand and how Far Have you Come? July 5, 2026
  • 5 Real-World Ways People Are Using AI Like ChatGPT to Manage Money and Build Wealth June 28, 2026

Archives

Categories

Pages

  • Advertising
  • Contact
  • Money Mastery Videos
  • Welcome to BudgetSense.ca: About us, Purpose and Passion
  • Write for Us

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
©2026 | Built using WordPress and Responsive Blogily theme by Superb