Finding it difficult to manage your savings account, especially after opening multiple new accounts? Worry not. Here are 5 smart tips for young adults to manage them like a pro.
Keep Separate Savings Accounts for Different Goals
You may have different savings goals, such as:
- Saving for a vacation or trip
- Paying off your debts
- Building an emergency fund
It’s better to open a new bank account for each of these goals. Besides, you must have a primary savings account for basic expenses like:
- Food and grocery
- Rent/mortgage
- Electricity, gas, water, internet and mobile bills
- Health insurance
- Car insurance
- Loan EMIs and credit card bill payments
If you don’t combine all accounts into one, you can better manage them and make sure whether you’re saving enough for every goal. Moreover, you can earn interest separately in each account. This can help in growing your savings more.
Use a Debit Card
Why visit the bank every time you need money? You can best manage fund withdrawals using a debit card. So, after opening a new account, make sure to link a debit card to it. Then you can use the card for all kinds of bill payments and even online shopping. No hassles of carrying cash.
Don’t Go Overboard
The ideal way of budgeting is spending 50% of your savings for your needs, 30% for wants and 20% to pay off your debts or deposit in the bank. If you save beyond this 20% bar, you may not be left with enough funds in hand to pay for your essentials. However, it’s also important to not save too little. You must be financially prepared for any emergencies.
Use Online Banking
Make the most of online banking services, especially in the current situation to stay safe. First of all, when you’re opening a new account, apply for a bank account online. Then right from the application process to document verification, everything can happen online hassle-free and fast.
After you open a savings account online, you just need to log in to know how much you’re saving and spending. You can track all your spends. If you see that you’ve overspent on any unnecessary things, you can cut down your expenses accordingly next time. This can help plan your finances better. Likewise, you can check whether you’ve made all the bill payments on time. Plus you can use net-banking itself to pay your bills and for other online spends.
Go for Direct Deposits
Whether you wish to transfer a certain sum regularly from your primary savings account to other accounts or have your salary directly credited to your primary account, opt for automatic transfers. You can request your bank to initiate this facility. Then all the deposits will take place regularly on time without you having to take care of them. This can keep you stress-free since you won’t miss out on any transfers.
Follow these tips to manage your bank accounts easily and efficiently. Also, make sure to have a disciplined approach towards saving regularly for financial well-being.
Comments are closed.