What’s the purpose of a savings account? It’s supposed to be a bank account we save money with. But when we have only one designated savings account, what we eventually use if for is far from saving money. What we call a ‘savings account’ is more or less a receptacle for our income with a tap (ATM card) to spend it however we like.
We suggest you have more than one savings account for each money goal you’re working towards. Here’s why:
It helps you keep track of exactly how much you’re saving
When your keep all of your money for different goals in one place, you subonciously think that you have more than you actually do, and this can make you complacent in your saving habit. Putting the monies in separate accounts shows you at a glance, how far you have to go, pushing you to do more and be more, so you can meet those goals.
Stops you from overspending
Having the lump sum of all your savings in one place gives you a false sense of security. You low key feel like you’re really doing okay, so if the opportunity comes, you’ll probably blow the money.
You are not stuck with one interest rate
With multiple saving accounts, you can explore better interest rates from other banks other than the one you currently use, giving you better value for your money.
You forget what you’re saving for
With all of your savings in one place, it’s highly likely that you will not use the money to meet all of those goals you have set for yourself.
So what’s the best bet? Create multiple accounts for your different saving goals. Set up a system that deducts the money automatically from your main account , and you’re on your way to hitting those goals!
Meanwhile, you should get these tips on small ways to save big everyday.