Lets say I have $100 each month to put in my savings account and that I want to save towards thing A, B, C and D that each cost the same (e.g. $200 each).
I'm not sure if I should have one savings account for all things (put all $100 dollars in to it each month) or have separate savings accounts for each thing (put $25 in each). Each savings account is free.
By doing it the first way I could save up for one thing in 2 months, allowing me to spend it according to the way I prioritize A, B, C or D.
Doing it the second way will make it so I have saved up for all 4 things in 8 months.
What are pros and cons of first saving for one thing vs saving for all things at once?
What are the pros and cons of lumping all my savings so I can take from it when some saving goal is reached (e.g. I have enough for B so I'll spend the money) vs partitioning my money into separate accounts (one for each saving goal) and then taking from each account only when its goal has been reached?
Please notice that I don't want to focus on account management. For the purpose of this question saving accounts are not bank accounts - lets say each account is an envelope (or a sock) with words A, B, C or D on it.
In reality I would be saving towards much more things that cost differently and a lot more. The way I will end up using will fall somewhere between the 2 methods described: allocate money for all things evenly or in proportion to their cost.