Financial adviser: keeping all money in one checking account is a mistake

Financial adviser Elizabeth Wakefield argues that keeping all your money in a single checking account is one of the most common mistakes people make. In a podcast interview, she compared it to storing socks, forks, and hammers together at home, saying it makes no sense when drawers and cabinets exist to organize things Source: Clarín. She recommends a multi-account structure to separate funds by purpose.

Recommended structure

Wakefield suggests a main account for income and regular expenses, and a second account—ideally interest-bearing—for a safety cushion covering emergencies and unexpected costs Source: El Confidencial. She also advises creating a separate account for planned future expenses, such as vacations, by dividing the total into smaller monthly savings. For a €2,500 trip, she suggests saving €150–€200 per month Source: Clarín.

Expense audit

Beyond account structure, Wakefield stresses the importance of regularly auditing expenses. She notes that many people fail to review subscriptions and fees they no longer use Source: El Confidencial. She also recommends asking whether a purchase fits the monthly budget and, when financing, considering the APR (TAE) rather than the nominal rate, as it reflects the true cost including extra fees Source: El Confidencial.

Key points

• Keep a main account for income and bills, and a separate emergency fund covering several months of basic expenses Source: Clarín.
• Use periodic savings for predictable costs like holidays, insurance, or taxes Source: Clarín.
• Conduct an annual budget to set priorities and identify dispensable spending Source: Clarín.
• Before buying, evaluate affordability and the real cost of financing Source: El Confidencial.

Both sources agree on the core advice, though Clarín emphasizes the emergency fund size, while El Confidencial highlights the APR distinction.