Three Bank Accounts

Ever wondered why your money seems to disappear without warning? Or why, despite earning well, you are not building wealth as fast as you should? The answer may lie not in how much you earn - but in how you manage what you earn.

A simple yet powerful solution? Maintain three separate bank accounts, each with a clear purpose. This method brings clarity, discipline, and control over your income, expenses, EMIs, and most importantly, your investments.

Here’s how the 3-account system works:

1. Income Account – Your Financial Inbox

This account is where all your earnings come in - salary, freelance income, business receipts, etc. But don’t use it for spending. Think of this as a collection center for all your cash inflows. From here, you will allocate your money purposefully into the next two accounts.

2. Expenses and EMIs Account – Your Present Account

From the Income Account, transfer only what you need for the month - this includes your lifestyle expenses and all loan EMIs. This is your spending account. By transferring only a limited amount here, you automatically restrict impulsive expenses. This helps you avoid overspending and gives you full control over your monthly outgoings.

3. Investments Account – Your Future Best Friend

This is the most powerful account in the system. Before spending, transfer a fixed amount to this account, ideally on the same date every month. This money is not for spending; it’s for wealth creation. Use this account to invest in mutual funds, stocks, gold, or fixed deposits. This ensures you are saving before you spend, also known as the "pay yourself first" strategy.

Why This System Works

Account 2 supports your present self - helping you live comfortably but within your means.

Account 3 secures your future self - building long-term wealth and financial freedom.

By separating your money into these three buckets, you eliminate confusion, develop discipline, and avoid financial chaos. You no longer have one account doing everything - which often leads to missed investments, overspending, or delayed EMIs.

At first, it may feel difficult or even unnecessary. But stick with it. Over time, you will experience a powerful shift: you are commanding your money, not the other way around.

This isn't just about budgeting - it’s about building a system that respects both your present lifestyle and your future dreams.

Three accounts. One decision. Lifelong control. Start today.

Remember

Your high incomes do not matter → if you do not save enough.

Your savings do not matter → if you do not invest in inflation-beating assets.

Your investments do not matter → if you do not stay invested for the appropriate time horizon.

In the quest of a high income or career, please do not ignore your investments and passive income.

Being rich → having money.

Being financially free → having time + money.

(The author is a Chartered Accountant and CFA (USA). Financial Advisor.

Views personal. He could be reached on 9833133605.)