One point of contention in the financial world is how one should spread out their money across their accounts. This includes one’s checking account, one’s savings account, the amount of money invested, and if one should open multiple bank accounts. There likely is no correct answer, as it depends entirely on the individual and how they feel most comfortable and set up for financial success. With that said, there are certain moves one can take in setting up accounts that will best suit certain financial goals across the board.
If you are trying your best to live frugally, I would recommend having as little money as possible in your primary checking account. Essentially keep the money you need to pay your most basic bills plus a bit extra for surprise expenses in your checking account and defer everything else into a high yield savings account. This is because your money does not work for you in any capacity in a checking account, while it can earn you interest in a savings account. In addition, this will help from giving you any false impression about the amount of money you have and keep you disciplined on a longer term financial goal.
Another tip I would recommend for your checking account regardless of how frugally you are trying to be is to automate all of your essential bills. This will eliminate having the money that needs to be directed towards important payments cluttered with money that you can move more freely. It is wise to separate this money ahead of time through your budget plan so there are not any surprises when you are automatically charged. You also should be checking your bank account daily to help plan out upcoming expenses with a mindfulness of how much money is in your checking account, and how much there will be once a specific payment is made.