SAVING TIPS FOR A BETTER FUTURE

It takes a sizeable amount of time and effort to build a weighty stash of money. Whether you use it for non-banking investment or splurge it on travel is a different story. However, how do you save up? There are two kinds of people: one who use a single savings account and the other who do not believe in banking monogamy.

You head out with your colleagues to grab a quick bite after work, and to the mall on a weekend. Can you stop yourself from shelling out money to get what makes you happy? It’s almost like our debit cards jump out of the wallet on their own.

When most of the good things come with a cost, how do you even save? The solution is to open multiple online savings accounts.

Benefits of having at least two saving accounts

Segregated funds

When you have a large sum of money in one place, you are at a risk of spending more. Unfortunately, a lot of us are spoilt by their passions and we end up splurging more than saving. You can fight this tendency, simply by dividing your funds in two or more places.

Double Withdraw Limit

For instance, if your card’s ATM withdrawal limit per day is 60,000 INR, having two cards will allow you to withdraw 1,20,000 INR. Similarly, you can simply split the cost in two cards when going to invest in home appliances and furniture.

Short Term and Long Term Targets

We know how difficult it is to save money for that Europe trip you’ve been postponing due to shortage of funds. Your phone is practically screaming for a replacement, but where is the money for iPhone X? Yes, we have goals—it may be a small trip, a purchase or even a house! By creating separate bank accounts for each goal, you can easily track the progress of your savings. It will also curb the tendency to spend beyond the designated budgets.

Multiple Benefits

Having two different kinds of debit cards means that you can avail the perks and benefits of both! While one may offer you discount on movie tickets, the other may just earn you cashback on flights. Point is that you can enjoy several benefits by just adding a little variety to your debit/credit card portfolio.

Conclusion

If you are fortunate enough to have enough cash, and maintaining minimum balance is not a matter of concern—opt for multiple savings accounts! However, if your funds are limited, you maybe locking your cash in unfruitful places (in order to maintain minimum balance). You may rather invest it in SIPs, mutual funds etc. So, it’s for you to decide, keeping in mind your goals and the availability of funds.