As an earning individual with a paycheck life, you might find it tempting to spend heavily on travelling, shopping, and other pursuits of pleasure. But, inculcating a savings habit as an adult is imperative for a financially secure future. Opening a savings account is a good first step to kickstart your savings habit. But that’s not where the story goes. You need to also need a plan of action to make your savings count.
So, here are some tips to help you make the most of your savings account.
Set Short-Term and Long-Term Goals
Sure, you wish to save money; but what are your goals? Are you saving to clear a loan? Is it for your child’s education? Or do you want to go on a family vacation? To ensure better savings, it is best to set some short-term or long-term financial goals that you want to achieve. With a clear objective in mind, it will be easier for you to maintain your savings.
Read more: Best banks for saving account in India
Select the Right Bank
As discussed earlier, opening a savings account is the first steppingstone in your savings journey. However, with various types of accounts made available to the customer, it’s wise to take your time and explore your choices first.
As a rule of thumb, choose a bank that gives more offers as well as better interest rates on your savings account. At the same time, you must also consider other facilities provided by the bank. Does it offer affordable loans? Does it provide an overdraft facility? Or does it have a minimum balance requirement for your deposit account? Research thoroughly and open a savings account accordingly.
Fix a Monthly Budget
This may sound like a tedious task, but planning your monthly budget is a major step towards better savings. Take out the time to calculate your monthly expenses, including your electricity bills, food and entertainment costs, education, any payable EMI costs, and more. This will allow you to make adjustments and save accordingly.
Check Your Account Regularly
Keeping an eye on your account statements regularly will help you know how much you are spending. This way, you will be able to cut back on any unnecessary expenses and maximise your savings.
Fortunately, technological advancements have made keeping track of your finances a lot easier. With online banking, you can now access your account details and financial transactions within a few clicks, allowing you to monitor and save on the go.
Create an Emergency Fund
Once you’re used to saving, start putting away small chunks of your savings as a contingency fund. While your short-term or long-term goals can be met by your savings, an emergency fund would allow you to face any sudden and urgent financial issues. You can also open a separate bank account meant just for your emergency backup.
Moreover, you can set up an auto-pay facility to transfer a fixed amount, so you don’t have to voluntarily put money into the emergency savings account every month.
Whatever might be your objective for saving, using the aforementioned tips can help you manage your savings and savings account efficiently. But before you finalise your savings account choice, conduct proper research, ask around, and compare the multiple options available for you. After all, getting the best savings account will help you save better and will result in a secure financial future.