One of the rules in investing and saving is, do not to keep all your eggs in one basket. Millionaires and rich people know about this secret about saving and investing. Not only millionaires, but people with some financial literacy do not maintain a single bank account. They keep their money in different accounts. Rich people keep their money in different banks and different accounts.
How Many Bank Accounts Do Millionaires Have?
The average billionaire and millionaire have at least 5 bank accounts. Each bank account is usually for keeping money for a specific purpose.
You will find a rich person with a specific bank account for savings, investments, expenses, retirement, and emergency. Rich people have financial discipline such that in case they withdraw money for investment let’s say from a retirement account, they will make sure to refund the money to that account.
Financial discipline and managing spending is one thing that keeps rich people ahead of the average person. They don’t just spend anyhow. They have to budget before spending any of their coins.
Why Do Millionaires Have Multiple Bank Accounts?
Now that you know billionaires have multiple bank accounts, you could be wondering why they do so. The following are some of the reasons:
1. Protect their Money from Theft
One of the reasons why rich people have multiple bank accounts is to protect their money from theft. High net-worth people’s accounts are often targeted by scammers and hackers. To lower the risk of losing huge amounts of money through theft, the best thing for them to do is to open multiple bank accounts.
Also read: Where do millionaires bank their money?
2. Makes it Easy to Manage Money
The other reason why millionaires maintain several bank accounts is to make it easy manage their money. For instance, having an expense account, saving account, and investment account make it easy for them to spend their bank balance accordingly. It also makes it easy to track your cash flows.
3. Control their Spending
Many rich people have an expense account for managing their spending. Having an expense account makes it easy for them to account for every expense. It puts them on their toes not to misuse their money. For instance, a millionaire won't withdraw money from an investment account and use it on any other expense.
Do Millionaires Have Multiple Bank Accounts?
Yes. Billionaires and millionaires have multiple bank accounts. Rich people maintain multiple bank accounts to lower the risk of losing their money. With the high rate of crime targeting financial institutions, it is possible to lose money in your bank account. Hackers often target high-net-worth individuals’ bank accounts.
How Much Money Do Billionaires Have in the Bank?
Billionaires keep only a small percentage of their money in the bank. The money they keep in the bank is to cater for emergencies in case they arise. They then invest the rest of the money in income-generating projects. Keeping money in the bank account can cost you through opportunity cost. Besides, inflation can also negatively affect your money while in the bank.
Summary: How Many Bank Accounts Do Billionaires Have
The average millionaire has at least 5 bank accounts. Rich people maintain multiple bank accounts to control their spending, make it easy to manage their money, and also protect their money from theft. They usually have a specific bank account for a specific purpose. They have financial discipline such that they don’t just take money from any account.