You can do this by setting up separate bank accounts or by using a bank that lets you divide your money into ‘pots’ or ‘spaces’. You then set up standing orders to the bank accounts each month. Even if you don’t have much to spare, even small amounts count.

It may be that right now you need 95% of your income for basic living and the other 5% can be divided between the other accounts. It might be that you can spare a lot more for the other accounts. It is all down to personal circumstance.

So here are the 6 bank accounts you need….

1. Daily living

This is the bank account you already have. This is were your wage or other earnings are paid into. Work out exactly what you need to keep in here each month and split the rest between the other accounts.

2. Longer-term savings

This should be for a specific goal such as a deposit on an investment property. Saving in a bank will reduce your spending power over time due to inflation; so use the money for an income generating purpose as soon as you can!

3. Investing

This is for day-to-day investing. Maybe you see an opportunity to by some Bitcoin at a good price on a particular day or some other irresistible opportunity comes up. This money is set aside for that purpose. You can use it as needed without worrying that you are spending your daily living currency.

4. Business/Education

This one is for spending on building up side hustles – start up costs, marketing, etc. It is also for spending on courses, books and other educational materials which will increase your income in the future.

5. Animal Charities

Doing good gives life meaning. Animals are innocent and unable to stand up for themselves. There are very few people helping animals compared to other causes, so it is an area that you can do the most good. Unlike many other charitable sectors that have unintended ill effects, as long as you pick a good animal charity you can be assured you are improving lives. So while it is, of course, your decision I highly recommend giving something to animal charities each month!

6. Emergency

This is your rainy day fund. Life is never certain and things often don’t go to plan. Putting aside some money each month into an emergency pot ensures you are secure if disaster strikes. Having this fund means you will not have to rely on credit cards or expensive payday loans. This is a huge saving in the long run.

Give these bank accounts a try even if you can’t put much into each right now. Over time it will become a habit and as you earn more you can adjust the percentage you put into each.