How to start saving money?

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  • Have two or more savings bank accounts

Having only one bank account is a biggest mistake you ever make. Why? You cannot keep track of savings and expenses. Imagine having 100 of transactions a month and you do not know which is for which?

The secret is to have two separate bank account. One for savings (untouchable), One for daily expenses (withdrawal, shopping). The best advise is to not have an ATM card linked to your savings account so the only way to withdraw the money is via bank book (by going to the bank) or iBanking(transferring in between accounts).

In conclusion, the more bank accounts you have, the more money you can save.  So start opening accounts throughout the banks available so you can spread out your money.

  • Know your limits

At this age, we tend to not think about our future. Why? As soon as your first paycheck is in, you spend and spend and spend. Because you worked hard for it and the best way to treat yourself is by spending money. Furthermore, we have no liabilities. No need to pay for our electrical bills no need to pay for nothing. Perhaps, just paying for your phone bills.

That is the biggest mistake ever done by people around the age of 20s. We do not think about what is ahead of us. Paycheck of $1000 is in, we spend everything. We do not even keep a single cent because we know that if we need more, we have our parents to support us. This is definitely a no-go. We will never know what will happen tomorrow.

Know your limits, perhaps spending on what you need first, then your wants. The rest, save it. Keep it in your savings bank account and use it during emergency. You will never know when you will ever need money. In a blink of an eye, everything can change.

 

This content article is written by Faris Aziz.