Hi everyone, I’m looking to set up a budgeting system that uses separate cards for different spending categories (e.g., groceries, clothing, household items, etc.). The goal is to transfer a fixed amount of money to each card each month, ensuring that I don’t overspend in any of these categories. I’m specifically looking for advice on how to set up such a system with low or no fees, while using a safe and secure platform. Ideally, I’d prefer to keep everything within the traditional banking system. If you have any suggestions, personal experiences, or recommendations for services that offer this kind of setup, I’d really appreciate hearing from you! Thanks in advance for your help!

Great question! Let’s break this down into easy steps. 1. Pick the Right Bank Look for a bank that does not charge monthly fees. Some banks let you open checking accounts with no fees, even if you keep only a small amount of money in them. You want to avoid paying for things like overdraft fees or ATM fees. If you see a fee, there is usually a better way to do it. 2. Set Up Separate Accounts or Cards You can open separate checking accounts for each spending category (like groceries, clothing, household items). Some banks let you have multiple accounts for free. You can also ask your bank if they offer extra debit cards for each account. 3. Transfer Money Each Month At the start of each month, move the amount of money you want to spend into each account or onto each card. This helps you stick to your budget and not overspend. 4. Avoid Fees Make sure your accounts do not have monthly fees or overdraft fees. You can ask your bank to turn off overdraft protection so you don’t accidentally spend more than you have. 5. Keep It Simple The simpler your system, the easier it is to use. Don’t worry about tracking every tiny detail unless you want to make changes later. Just focus on sticking to your plan. 6. Plan Ahead Try not to scramble at the last minute for cash or purchases. Planning helps you avoid paying extra fees because you forgot or waited too long. Action Steps: • Ask your bank about opening multiple no-fee checking accounts. • Request debit cards for each account. • Turn off overdraft protection. • Transfer your budgeted amount into each account at the start of the month. • Use each card only for its category (groceries, clothing, etc.). If you ever see a fee, ask your bank if there’s a way around it or look for another bank that doesn’t charge those fees. Remember: The goal is to make budgeting easy and stress-free! (Source: Ep 276 | How to Set Up Your Financial Life; Ep 150R | Goals vs Systems; How to Keep Track of Grocery Spending)

Ally bank lets you open multiple checking accounts with a debit card for each one, but not sure what their limit is. There are no fees.

Thanks!

Most choose to just use a budgeting app like YNAB. It doesn't enforce the category limits, but it helps you do all the planning and spending tracking you're looking for

@rich-insurance-32675 Ally bank has a limit of 3 checking accounts which is not enough to set up properly.