You probably know the phrase “Don’t put your eggs all in one basket.” Well, when it comes to your finances, the same concept applies.
When first venturing out from your first piggy bank into a real bank account, a standard checking account is perfectly fine. However, as your needs and life come with changes, so do your financial needs. You may want to begin looking at multiple financial accounts as they will serve different purposes and might even be able to make money for you. Here are some reasons to diversify your financial account options.
NOT ALL BANKS ARE CREATED EQUAL
While one bank may offer you the best rates when it comes to credit cards, another may have better terms for your next loan. You always want to shop around so that you can get the best available options for your financial decision making.
BUSINESS PERKS MAY DIFFER FROM PERSONAL
Your business needs versus your personal needs may very well be serviced best by different institutions. Many banks offer specific business incentives but may not be your best option for personal financing.
MORE THAN JUST BANKING
Investment, retirement, savings, and checking accounts all serve different needs. Many of these accounts can be a “set it and forget it” option. One option is to have money taken from your check monthly put into your 401k account to start your retirement fund. Many times employers will even match a certain percentage you invest. Always explore your options in how to make your money work for you.
DIFFERENT ACCOUNTS FOR DIFFERENT GOALS
Perhaps you are saving for several big purchases or goals, but the timeline for each may be different. If you want to each goal to have its own account, opening more than one savings account is a great idea. You can see how you’re tracking when it comes to each of your goals as well as collect interest on both. It never hurts to be more organized when it comes to your savings.