Multiple accounts can make it easier to follow a monthly budget

By taking a modern-day approach to savings, you can update an old-fashioned method with all the same advantages.

Americans have trouble saving. While the numbers are down slightly from last year, a new report from PYMNTS and LendingClub, shows that 60 percent of adults live paycheck to paycheck and of those, four in 10 are considered high-income earners. Monthly budgeting (and saving) is beyond many of us.

But savings is critical to lay the foundation for your financial security. Without a nest egg to rely on in an emergency, such as an accident or job loss, or funds to pay for milestone expenses like education or retirement, you may find yourself in a constant struggle with your finances.

You can make it easier to save with the right approach. One idea is a modern take on an old-fashioned way to save, having multiple savings accounts. It’s a great way to build your savings, keep your goals on target and make it easier to manage your money.

A modern take on the envelope method

The classic technique to manage your funds is known as the envelope method. It’s a simple approach: Designate envelopes for each item in your budget, such as food, gas, down payment, etc. And do the same for your savings goals. For instance, you may have savings envelopes for a wedding, college fund, travel or other big purchases. Each month you put a certain amount of money into the envelopes.

Many people have used the envelope method to stay within their budget and manage multiple financial goals. But stuffing envelopes and keeping them in your house may not be entirely practical in our modern world. However, the concept remains powerful, and it can be applied using a more modern method.

Multiple accounts for savings goals and monthly expenses

The modern method is to open multiple personal savings accounts, each one acting like its own “envelope.” It’s far more secure than stashing cash into paper envelopes and is just as simple to manage.. Using multiple savings accounts for specific purposes can help you stay organized and realize your savings goals.

Here are four ways to use savings accounts you may want to consider:

Emergency fund: Many financial advisors suggest having an emergency fund equal to six months' salary. This keeps you secure if you should suffer a financial emergency, like a medical bill, job loss or other unexpected life events.
Big-purchase fund: If you're planning to make a big purchase in the future, like paying for a wedding or sending a child off to college, a separate account will help you measure your progress and give you a picture of how you’re progressing toward your goal.
Car fund: Even if you just bought a new car, set aside a little money from each paycheck for routine maintenance and potential repairs.
Monthly expenses: Keeping a separate account for monthly bills, entertainment, groceries and other items can help you stay within budget and meet your expenses each month.

Learn more about how to create a budget for yourself.

Learn about U.S. Bank

Visit usbank.com

800-872-2657

6 tips for trust fund distribution to beneficiaries

Preparing for retirement: 8 steps to take

How to build wealth at any age

How to manage your money: 7 tips to improve your finances

LGBTQ+ financial planning tips

Investment strategies by age

Should I itemize my taxes?

Your 5-step guide to financial planning

6 things to know about long-term care insurance cost and benefits

What is Medicare? Understanding your coverage options

6 questions to ask before buying a new home

8 steps to take before you buy a home

Military homeownership: Your guide to resources, financing and more

Are professional movers worth the cost?

What to know when buying a home with your significant other

Building a dream home that fits your life

Mortgage basics: How much house can you afford?

Mortgage basics: Finding the right home loan for you

Home buying myths: Realities of owning a home

Certificates of deposit: How they work to grow your money

5 financial goals for the new year

Retirement savings by age

Annual insurance policy review checklist

Allowance basics for parents and kids

Loud budgeting explained: Amplify your money talk

How I did it: Turned my side hustle into a full-time job

Retirement plan options for the self-employed

Checking and savings smarts: Make your accounts work harder for you

5 reasons why couples may have separate bank accounts

Dear Money Mentor: How do I pick a savings or checking account?

It's possible: 7 tips for breaking the spending cycle

Myths vs. facts about savings account interest rates

Closing on a house checklist for buyers

How to plan and save for adoption and in vitro fertility treatment costs

Healthcare costs in retirement: Are you prepared?

Multiple accounts can make it easier to follow a monthly budget

Is it time to get a shared bank account with your partner?

Don’t underestimate the importance of balancing your checking account

7 steps to keep your personal and business finances separate

How to Adult: 5 ways to track your spending

Which is better: Combining bank accounts before marriage — or after?

5 tips for parents opening a bank account for kids

6 questions students should ask about checking accounts

Steer clear of overdrafts to your checking account

30-day adulting challenge: Financial wellness tasks to complete in a month

Estate planning checklist: 8 steps to secure your legacy

8 steps to choosing a health insurance plan

Key milestone ages as you near and start retirement

How to build a financial plan that covers your savings and expenses

How I did it: Bought a home without a 20 percent down payment

How I did it: Switched career paths by taking an unexpected pivot

5 ways to maximize your garage sale profits 

What is a home equity line of credit (HELOC) and what can it be used for?

Estate planning documents: Living trusts vs. will vs. living will

Why estate planning is important

How a Health Savings Account (HSA) can benefit your retirement plan

Year-end financial checklist

Pet ownership costs: planning for the unexpected

Housing market trends and relocation impact

Finance or operating lease? Deciphering the legalese of equipment finance

Buying or leasing? Questions to ask before signing a contract

Insource or outsource? 10 considerations

The secret to successful service provider integration

Safeguarding the payment experience through contactless

COVID-19 safety recommendations: Are you ready to reopen?

Unexpected cost savings may be hiding in your payment strategy

Protecting cash balances with sweep vehicles

Changes in credit reporting and what it means for homebuyers

High-cost housing and down payment options in relocation

What corporate treasurers need to know about Virtual Account Management

Crypto + Relo: Mobility industry impacts

For today's relocating home buyers, time and money are everything

How to sell your business without emotions getting in the way

5 steps to take before transitioning your business

10 tips on how to run a successful family business

Talent acquisition 101: Building a small business dream team

Costs to consider when starting a business

How to test new business ideas

The costs of hiring a new employee

How to expand your business: Does a new location make sense?

How to choose the right business checking account

Does your side business need a separate bank account?

How to build a content team

Multigenerational household financial planning strategies

Do I need a financial advisor?

How to track expenses

How to manage your finances when you're self-employed

Good debt vs. bad debt: Know the difference

Good money habits: 6 common money mistakes to avoid

Reviewing your beneficiaries: A 5-step guide

How to talk about money with your family

Financial steps to take after the death of a spouse

Retirement advice: How to retire happy

Retirement income planning: 4 steps to take

Preparing for retirement: 8 steps to take

Transitioning from the military to the civilian workforce

Working after retirement: Factors to consider

4 steps to finding a charity to support

Year end tax planning tips

Saving vs. investing: What's the difference?

What types of agency accounts are available for investors?

Tips for navigating a medical hardship when you’re unable to work

3 steps to prepare for a medical emergency

11 essential things to do before baby comes

Webinar: Uncover the cost: Starting a family

Preparing for adoption and IVF

Checklist: 10 questions to ask your home inspector

Resources for managing financial matters after an unexpected death

What you need to know as the executor of an estate

What documents do you need after a loved one dies?

Checklist: financial recovery after a natural disaster

How does money influence your planning?

College budgeting: When to save and splurge

How to save money in college: easy ways to spend less

How to gain financial independence from your parents

The A to Z’s of college loan terms

Co-signing 101: Applying for a loan with co-borrower

Practical money skills and financial tips for college students

How to build credit as a student

5 things to know before accepting a first job offer

How I did it: Paid off student loans

Bank Notes: College cost comparison

Tips to earn that A+ in back-to-school savings

From LLC to S-corp: Choosing a small business entity

Recognize. React. Report. Don't fall victim to financial exploitation

Recognize. React. Report. Caregivers can help protect against financial exploitation

Is online banking safe?

8 tips and tricks for creating and remembering your PIN

What to do with your tax refund or bonus

Pros and cons of a personal line credit

3 tips for saving money when moving to a new home

Is raising backyard chickens a good idea financially?

3 financial tools to help automate your finances

3 ways to keep costs down at the grocery store (and make meal planning fun)

5 tips for creating (and sticking to) a holiday budget

Financial checklist: Preparing for military deployment

5 things to consider when deciding to take an unplanned trip

Stay committed to your goals by creating positive habits

Growing your savings by going on a ‘money hunt’

Working with an accountability partner can help you reach your goals

Why a mobile banking app is a ‘must have’ for your next vacation

How to decide when to shop local and when to shop online

5 myths about emergency funds

Does your savings plan match your lifestyle?

Uncover the cost: Wedding

Uncover the cost: International trip

Are savings bonds still a thing?

Tips to overcome three common savings hurdles

Adulting 101: How to make a budget plan

How having savings gives you peace of mind

Personal loans first-timer's guide: 7 questions to ask

3 awkward situations Zelle can help avoid

Mindset Matters: How to practice mindful spending

How can I help my student manage money?

How to manage money in the military: A veteran weighs in

You can take these 18 budgeting tips straight to the bank

3 tips for saving money easily

Save time and money with automatic bill pay

How to best handle unexpected expenses

Stay on budget — and on the go — with a mobile banking app

Do you and your fiancé have compatible financial goals?

U.S. Bank asks: Transitioning out of college life? What’s next?

U.S. Bank asks: Do you know your finances?

U.S. Bank asks: Do you know what an overdraft is?

Personal finance for teens can empower your child

How to save for a wedding

Here’s how to create a budget for yourself

9 simple ways to save

How compound interest works

Dear Money Mentor: How do I set and track financial goals?

Lost job finance tips: What to do when you lose your job

Money Moments: 3 smart financial strategies when caring for aging parents

Tips to raise financially healthy kids at every age

Money management guide to financial independence

First-timer’s guide to savings account alternatives

Money Moments: 8 dos and don’ts for saving money in your 30s

7 financial questions to consider when changing jobs

Travel for less: Smart (not cheap) ways to spend less on your next trip

Overdrafts happen: Steps to get you back on track

What’s in your emergency fund?

What you need to know about renting

How to stop living paycheck to paycheck post-pay increase

Practical money tips we've learned from our dads

6 ways to spring clean your finances and save money year-round

How to cut mindless spending: real tips from real people

Understanding guardianship and power of attorney in banking

How to increase your savings

Bank from home with these digital features

What financial advice would you give your younger self?

How grandparents can contribute to college funds instead of buying gifts

How to open and invest in a 529 plan

Using 529 plans for K-12 tuition

Parent checklist: Preparing for college

What to consider before taking out a student loan

Consolidating debts: Pros and cons to keep in mind

How to use debt to build wealth

Know your debt-to-income ratio

Overcoming high interest rates: Getting your homeownership goals back on track

For today's homebuyers, time and money are everything

Crypto + Homebuying: Impacts on the real estate market

Should you buy a house that’s still under construction?

How I did it: Bought my dream home using equity

Buying a home Q&A: What made three homeowners fall in love with their new home

House Hacks: How buying an investment property worked as my first home

Managing the impacts of appraisal gaps in a hot housing market

How I did it: Built living spaces to support my family

Spring cleaning checklist for your home: 5 budget-boosting tasks

Saving for a down payment: Where should I keep my money?

Your guide to breaking the rental cycle

Checklist: 6 to-dos for after a move

What are conforming loan limits and why are they increasing

Uncover the cost: Building a home

The lowdown on 6 myths about buying a home

4 ways to free up your budget (and your life) with a smaller home

Get more home for your money with these tips

Money Moments: Tips for selling your home

Money Moments: How to finance a home addition

How I did it: My house remodel

Dear Money Mentor: When should I refinance a mortgage?

Beyond the mortgage: Other costs for homeowners

10 ways to increase your home’s curb appeal

10 questions to ask when hiring a contractor

5 things to avoid that can devalue your home

What is an escrow account? Do I have one?

Is it the right time to refinance your mortgage?

These small home improvement projects offer big returns on investment

Should you get a home equity loan or a home equity line of credit?

Is a home equity line of credit (HELOC) right for you?

How to use your home equity to finance home improvements

How do I prequalify for a mortgage?

Home equity: Small ways to improve the value of your home

Can you take advantage of the dead equity in your home?

10 uses for a home equity loan

Improving your credit score: Truth and myths revealed

Credit: Do you understand it?

U.S. Bank asks: What do you know about credit?

Car shopping: Buying versus leasing your next vehicle

Take the stress out of buying your teen a car

Questions to ask before buying a car

What you should know about buying a car

Disclosures

Mortgage and Home Equity products are offered by U.S. Bank National Association. Loan products are offered by U.S. Bank National Association and subject to normal credit approval.

Equal Housing Lender

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, Home Equity and Credit products are offered through U.S. Bank National Association. Deposit products are offered through U.S. Bank National Association. Member FDIC.