Saving money as kids seems fun. However, as you start earning, the fun element gradually fades out. Almost everyone ends up spending a major chunk of money on paying utility bills, shopping, indulging in recreational activities, and paying for household items and children’s education. Whether you have started working recently or already have a stable income, saving money is a responsibility.
Opening a Bank Account has lots of benefits. With no lock-in period, flexibility, and easy access, you can withdraw funds at any time. Managing the account becomes easier by planning your finances and following these tips:
Develop a saving habit
A tried and tested way of developing the saving habit is by setting a goal and making it a routine to deposit some money every month. Even if you have extra financial obligations, keep a fixed amount aside and deposit the rest in the bank. It helps you in the long run and makes you calculative.
Start an emergency fund
Unexpected expenses can crop up at any time, interfering with the monthly budget and derailing your goals. If you are the sole earning member, start an emergency fund by setting aside a small amount to accomplish your living expenses for at least three to six months in case you lose your job or need to pay medical bills. Visit banks offering the best Savings Account interest rates to earn more on your idle investments and benefit from multiplied savings.
Maintain a separate account
Before online Saving Account opening, research the interest rates offered by different banks. Open the one offering attractive rates as you get higher saving capacity. You must open a separate account for emergency funds and regular expenses to avoid rushing to neighbours for help at the last minute.
Increase the allotment
Initially, start by saving 10% of your salary and gradually increase the percentage. You can eliminate excess expenditure, adding up to additional liquid funds to increase savings. Ask the bank to activate Mobile Banking to make transactions and check financial statuses on your smartphone while on the go.
When you open a Savings Account, treat it as a last resort. Consider applying for Loans from the bank. The online application process is swift, convenient, and reliable. You need to enter your details, check your eligibility, and documentation for applying for it. Repay the principal amount and interest in instalments over a tenure.
Check it regularly
With Digital Banking, you are only a quick login away from knowing your savings. If you use online bill payments, check your account every few weeks to ensure there are no problems or pending transactions for the month. You can also download the dedicated Banking app and authenticate it with a password or fingerprint verification, keeping it secure.
By following these tips, you can manage your money effectively and save more.