Using additional accounts to manage budget?

[GeneralZod]

I recently opened a number 2 current account (with the same bank) and have a standing order into it every month from the number 1 account that my salary goes into.

What remains in the no. 1 account is intended to

+ Pay annual bills (insurance, tv licence), utilities (ESB, Eircom, NTL) as a cashflow smoothing measure
+ Feed regular saver account
+ The remainder in no. 1 account will be used for investments

The no. 2 account is for everything else
+ Living expenses (food, lunch, petrol)
+ Discrentionary/luxury expenditure

The second account only has an ATM card as I will in future use cash for most things as it can help when asking for price reductions (commission that would otherwise go to the credit card company).

My thinking is that I can spend with abandon on the no.2 account (until it hits zero - after that I go hungry ) without fear of not paying any bills, incuring penalties or meeting my invested funds target.

Is anyone else doing similar or have suggestions for using multiple accounts to manage finance?

 

[niceoneted]

I have been doing this for the last few years but the other way around re accounts. I have worked out what my on going expenses cost me weekly (as that is how I am paid) and I put this money away into account 2. Money for things like Insurance (house and car) tax, ESB, Mortgage, servicing of car, etc I also include a small amount for Christmas, birthdays and weddings (these can be expensive events). I have another account for savings. Everything that goes into my no 1 account is for food and socialising. I feel I have alot more money since I started this and I never have to worry about bills. Works well for me,
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[MsGinger]

Yeah my OH and I also do this - we have a joint account for mortgage, bills, household expenses , savings etc & transfer money to this each week to cover all these items then what's in our own accounts we can do with as we please