Tips To Earn More And Spend Less With A Savings Account

By Author: Neha Sharma
Total Articles: 170
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Before you start earning an income, you will have plans for the different uses ofyour salary. Be it for any expenditure or saving, you must decide the best way to get more out of your income. What better way to invest in a savings account? In this article, we will give you information on how to spend less and earn more with this type of banking account.

• Divide Your Income Into 3 Parts

If you are living alone or with a family, the one- third rule is very beneficial to all working individuals. The ideal way to plan your salary or combined incomes is to divide it into three parts. Each part can be used for your monthly expenditures, payment of previous loans or bills and one part to be saved in the savings account. This one – third rule helps in planning and setting a habitual routine that should last a lifetime and which will help you save more in the long run.

• Plan Your Monthly Expenditures

Once you have set aside your monthly expenditure, you should plan how to use this finance suitable for the household as well as your daily expenditures. In this way, you can understand where you are ...
... spending excessively and where you can reduce your spending. For example, you can choose home cooked meals instead of ordered food for meals, thereby reducing the expenditure of your income and saving with home groceries. You can also opt for public transport instead of private transport to save on your monthly fuel expenditure. If that is not possible, you can opt for carpooling. Such small changes goes a long way in reducing your spending and increase your savings.

• Use Banking Cards For Your Advantage

Banking cards are ideally best way to check your expenditure. Banking cards like ATM and debit cards are normally an additional service that is provided by the bank with a Savings Account. An ATM card will help you curb your spending, if you withdraw the finances you will need for the whole month, only once. A debit card will also help you save if you have a special account for the household expenditures only. The credit card can also be used in the same way .The debit and credit cards will also help you get beneficial rewards and points which can be used to redeem more items instead of spending more finance for expenditure.

• Search For More Investment Options

This type of account is the best way to plan for your future investments. If you have excessive money and do not have a plan for it yet, the savings account is an ideal way to store that funding for the future, while still earning a substantial interest. Some of the future ideal investment options are fixed deposits, liquid investments, mutual funds, SIPs and insurance plans.

Author Bio :- Neha Sharma is a finance student loves to write about information regarding Savings Account. Thus is comes as no surprise that she would like to contribute more beneficial information about this account to the public.