You might do your best to save money in your bank account, but keeping it for the intended use could be a problem. Many people face this challenge because of miscellaneous expenses. It could be that sudden roof repair, an unplanned trip, or debt you must pay. In this case, it is essential to learn how you can ensure your money stays in your bank account.
The following tips may be of help:
Open A Fixed Savings Account
A fixed savings account will allow a customer to lock a certain amount of their savings in 1 to 12 months. It is a good strategy, especially for individuals with extravagant habits. You may use this option to set aside some funds that you intend for a project at a specific time.
Use A Target Savings Account
You might be planning for that family vacation you promised your kids, but you don't make enough progress for some reason. An excellent alternative would be to use a target savings account. It allows you to set a specific target amount to make monthly or weekly deposits until you meet your goal(s).
You Can Opt for a No Fee Chequing Account
Chequing accounts allow you to store money that you spend daily—for example, paying bills, depositing cheques, transferring money online, and debiting purchases. Most banks will charge you transaction costs, which can be costly in the long run. The best alternative would be to get a no fee chequing account. Many banks offer such options, so finding a reputable bank shouldn't be a problem.
Learn Your Spending Triggers
People have different needs, determining what triggers an impulsive buying habit or a disciplined spending habit. For example, some people are addicted to shopping fashion trends while others love the idea of shopping.
If you notice your bank account is getting drained without your understanding, it is time to retrace your expenses. The approach will help you identify where you spend the most money, and you can plan how to manage that habit. If you're spending lots of money going out on the weekend, it's best to start going out once or twice a month.
Activate Low Balance Alerts
Technology now allows bank customers to know their balances without walking into a bank or ATM. For example, if you set up a low balance alert, you will get a notification when your bank balance reaches a specific low. The alerts help you remain updated on what is happening to your money. If you have been overspending, the alert will make you stop and reconsider your spending.
Use Sub-Accounts for Savings
Like the target saving account, sub-accounts for savings allow you to open multiple savings accounts, each with a specific savings target. Doing this will help you fight the urge to use the money for an unintended purpose. Your mental accounting will not allow you to misuse your money, as each account is a reminder of a specific goal.
Automatic Savings Deposits
If you have a target saving account, you can allow for automatic transfers of small amounts into this account. In this case, the small deductions will get to sum up to a significant amount in the future. You can schedule the transfer to occur whenever you receive a payment or make a deposit into your account. The system will then deduct a small percentage and save it in your target account(s).
People tend to be attached to their money, making it difficult to save. For this reason, an automatic savings deposit will work in your favor.
Mobile and Online Budgeting Tools
The moment you receive a payment, you should sit down and budget for this money before you start spending. Since people find budgeting tedious, technical experts have developed mobile and online tools to help you do this job in seconds. You will input your bills, and the software will create a budget for you and ensure you have some extra money saved.
Conclusion
Also, you can manage to categorize your savings and spending, which will allow you to create a spending plan. Your bank may also offer a budgeting tool that you can access using your computer or mobile. The software may vary amongst banks, but their effectiveness is the same. It will ensure you don’t overspend and your savings remain in check.