44. Consolidate Your Checking Accounts

Early in our simplification program, I realized that my banking system had gotten out of hand. I had four or five separate bank accounts, which I had gradually been acquiring over the years: one for household expenses, one for business, one for contingencies, one for investments, one for savings. A banker friend told me that it’s not at all uncommon for people to have multiple bank accounts these days; some at the same bank, some spread around banks all over town. Like many multiple account holders, I had deluded myself into thinking multiple accounts were a convenience.

In terms of the excess mail that multiple accounts generate, not only are there the regular monthly statements for each account, but there are all the additional monthly promotional pieces, credit card offerings, and other inducements that have to be sorted through with the real mail.

In terms of the banking, not only did each of those monthly statements have to be reconciled, but I had to keep track of four or five separate checkbooks in addition to having to keep track of which account was to be used for which expenditures. More than once I had created major hassles for myself by writing checks on the wrong account.

Then, of course, there was the complication of making sure there were sufficient funds in each account to cover the checks.

If you find you are burdened by multiple checking accounts, getting rid of all but one of them will greatly simplify your banking chores. If you like the idea of keeping your savings fund and your contingency fund separate from your household funds—or whatever different accounts you have—you might want to consider adopting my simplified check register system outlined in #45.