How to Organize Your Accounts - Help
The Three-Account System
Simplify your finances with just three bank accounts, each with a clear purpose. This system prevents overspending, protects your bill money, and lets you spend guilt-free.
Physical separation creates psychological boundaries that protect your financial goals.
How Your Payday Flows
Bills Account
Your pay should be deposited here. This is where you pay all your expenses from.
How to Use It:
- 1. On payday, check EasierBudget's "Required Balance"
- 2. Make your account match that number
- 3. Use debit card ONLY for budgeted items (fuel, groceries)
What Goes Here
- • All automatic debits
- • Subscriptions
- • Everything in your EasierBudget
Spending Account
Your guilt-free spending money. When it's gone, you're done until next payday. The card will reach a zero balance so you won't accidentally spend your bill money. Automatic payments never come out of this account so you won't suddenly have less beer money than you planned.
How to Use It:
- 1. After depositing for bills give yourself some spending money
- 2. Limit this as much as possible by having an accurate Budget
- 3. Use this debit card for everyday purchases. Coffee, Beer, Bagels!
- 4. Automatic debits NEVER draw from this account.
What Goes Here
- • Coffee, beer, entertainment
- • Impulse buys
- • Any "fun money" spending
Savings Account
Everything left over automatically goes here. Once you've got your budget & spending money calculated, you'll be able to figure out a pretty consistent savings amount for each paycheck.
How to Use It:
- 1. Use a High-Yield Savings Account (HYSA)
- 2. Don't keep a debit card for this account
What Goes Here
- • Emergency fund (3 - 6 months living expenses)
- • Short-term goals (1-2 years)
Alternative Setups (Not Recommended)
More Than Three Accounts: Unnecessary Complexity
Most online banks now allow you to make lots of accounts and people often create 10+ accounts - one for vacation, one for car repairs, one for Christmas gifts, etc.
With EasierBudget you don't need this. It's there to keep track of the individual expenses.
- • Multiple accounts increase mental load without improving your savings habits
- • You end up transferring between accounts constantly
- • In rare cases you may end up paying more in fees
Keep it simple: Let EasierBudget track the details.
Two Accounts: Higher Risk
Combine Bills + Spending into one account, keep Savings separate.
Critical Rule: Balance must NEVER drop below your "Required Balance"
Only works if you have exceptional self-discipline
One Account: Not Recommended
Everything in one place. No interest on savings, high risk of overspending on bills money.
Frequently Asked Questions
What if I don't get paid enough to cover the 'Required Balance'?
Insurance and phone bills are usually the lowest hanging fruit where you can cut. But if you've cut all you can cut and still don't have enough, there's no magic budget that's going to help you. You either need to a) make more money or b) have less bills.
What if my bank charges for multiple accounts?
It's 2025 - Change banks.
How do I handle joint finances with a partner?
Popular approach:
Joint Bills and Savings accounts, individual Spending accounts
This gives you shared responsibility for bills and goals while maintaining individual freedom for personal spending. Each person gets their own 'no questions asked' spending money.
Example: If your combined income is $6,000, you might allocate $4,000 to joint bills, $1,500 to joint savings, and $750 to each person's individual spending account.
What about investment accounts and retirement savings?
Investment and retirement accounts are separate from this day-to-day money management system. This three-account system handles your cash flow and short-term goals (1-2 years).
Typical progression: First, build your emergency fund in the Savings Account. Then, start investing for long-term goals in separate investment accounts.
The three-account system creates the stable foundation that makes investing possible.
How much should go in each account?
It depends entirely on your situation, but here's how to decide:
Bills Account:
Whatever your budget says is the 'Required Balance' - this covers all your fixed expenses
Spending Account:
Start with $100-300 per week and adjust based on your lifestyle. More for dining out, less for homebodies
Savings Account:
Everything left over. Aim for at least 10-20% of income if possible
The percentages matter less than the habit of separating the money purposefully