Hear me out: this sounds so simple. Easy. Too easy? Kind of.
But it works.
I started doing this and was able to FINALLY budget my money in an effective way—without feeling like I was restricting myself.
My Old Budget:
Strict dollar limits for:
- Groceries
- Gas
- Going out
- Fun spending
It felt rigid, overwhelming, and impossible to stick to. I was constantly recalculating, shifting things around, and stressing over whether I’d budgeted correctly.
My New Budget:
One lump sum for:
- Groceries
- Gas
- Going out
- Fun spending
The difference? Two checking accounts.
Life Before:
Before splitting my money into two accounts, I kept everything in one. That meant I had to track the exact dates bills would come out and stay on top of pending charges for things like grocery shopping. It was a constant juggling act:
“Okay, I’m going out of town this weekend, so I don’t need as many groceries. That frees up money for Friday happy hour… carry the two, subtract ten…”
It was exhausting.
Life After:
Now that I have two checking accounts, I check the balance of my “spend” account and instantly know how much I have left for the pay period. No math. No stress. Just clarity.
How to Set It Up:
Step 1: Open Two Checking Accounts
Setting up checking accounts is easy and doesn’t affect your credit score—which is a huge win! I personally love Capital One checking accounts because:
- The app lets you rename your accounts, making it super easy to track which is which.
- Your debit card is only connected to one of your accounts, keeping your “bills” account less accessible.
Step 2: Direct Deposit
Have your paycheck deposited into your “bills” account. This account will be used for recurring expenses like rent, utilities, and loan payments.
Step 3: Budget Your Paycheck
Use your budget to determine how much money is left over after paying your bills.
Need help budgeting??? Check out my Money Organization blog with a FREE Google Sheet for organizing your own budget at home!
Step 4: Pay Yourself First
Before transferring anything to your “spend” account, prioritize your goals:
- Invest
- Save
- Pay off debt
Step 5: Transfer Your Spend Money
Figure out how much you need for things like gas, groceries, and fun spending. Add a little extra for joy (yes, joy is part of the budget too!). Then, transfer that amount to your “spend” account.
Why This Works
After transferring the money, you’ll be able to see exactly how much you have available to spend for the week, two weeks, or month—depending on your pay schedule. You’ll track your spending effortlessly without the mental gymnastics.
The best part? You’ll feel in control without feeling restricted.
Make It Your Own
The ultimate goal is to:
- Gain better visibility into your available money.
- Limit yourself without feeling like you’re cutting out all joy.
We’re on this journey together, and it’s important to find a balance that works for you.
Happy budgeting!