Saving money is not that easy and it can be a little tricky when you don’t know how to save it properly. We all want to live our life king size but that needs money for both essential and extra expenses.
When I started earning, I wanted to do a lot of things for my family, from buying new gadgets to sending them on a vacation to buying a new house. For the first few months, I struggled a lot with saving money till someone told me the importance of having multiple saving accounts. With more than one savings account, you can track exactly how much you have saved towards each individual savings goal. Initially, I opened one extra account for saving in which I added the leftover money after all the expenses. This way, I saved some money and then used that for different things including buying a new television and smartphone for my family. But as your parents grow, health problems also rise. I realized this when my father had a heart attack and I didn’t save much for medical expenses but luckily he had a health insurance. This is when I realized that I need another saving account for my parents’ medical expenses so I opened an instant saving account and started depositing a small amount of money every month in that account for emergencies as well. Some of my friends called me silly for managing so many accounts and suggested me to invest in mutual funds and other schemes or even a fixed deposit. But with them the money gets blocked and taking the money before a fixed period is difficult and you lose all the benefits too.
Today, I am a mother of a three-year old but I still strongly believe in the concept of multiple saving accounts and always suggest everyone the same because by putting money separately into numerous accounts, you enjoy watching your funds build up and can control what’s going in and out of your current account. Also, by leaving only a substantial amount in my salary which is zero balance account, I never overspend because the balance serves as a reminder for not over spending .
As parents, we opened one for our son and have a combined account which is helpful in the daily operations of the house. This allows us to spend wisely and not worry about savings as we transfer them to our separate accounts.