Are you struggling with keeping up with your money? Do all your savings just vanish right before your eyes? It just seems that no matter how much you earn, it is never enough for you? And it is completely impossible for you to come up with enough savings in cases of emergencies?
All in all, if you are looking for a way to answer the question; ‘how to increase my savings’, then you have come to the right place. The best way of saving your money in a better way is to start having a multiple account system. You should consider having at least three accounts, so that you literally do not have to put all your eggs in a single basket.
You might be confused and might be wondering about the point of having multiple account system. But rest assured, in this article we take a look at why you need to build a multiple account system, followed by how to build a multiple account system. And we hope after this article, we can answer your question of; “how to increase my savings”.
Why to build a multiple account system
If you work in a blue collar or white collar job, then your income comes from a single source, and so all your income also goes directly to the single account you use to pay your bills with, keep savings in, and also to store almost all your funds. This is a really bad strategy, as it keeps your money to be separated in dissected ways. And all of that money can be easily accessed by you on a given notice. And you might become more prone to heavy spending in times of binging without control.
And so, dividing your money into multiple accounts helps you divide your money in a better way. Linking them all together will get you the access of transferring funds among them whenever you want to. But, at the same time, will give you a much needed distance from you and your money.
You can build a separate account for salary, another for all your monthly and daily expenses, and final account for emergency funds. The best part about having a multiple account system is that, the more you divide your money, the more interest you will be able to accumulate. And if you keep your salary fund and your emergency fund in long term maturity, then you will also get high APY, which will be great for you. Here’s one of the best deals on multiple account systems for you:
By dividing your money and starting a multiple account system, you will be able to answer your question of “How to increase my savings”. And you will have more control over your money than you ever did. But now, let’s take a look at how to set up a multiple account system:
How to build a multiple account system
You can build your very own multiple account system by taking a consideration in the following points. And, once you go through them, you will be able to make bigger savings and have your own answer for “How to increase my savings”.
- Emergency fund account: This must be your priority in building a multiple account system. Emergencies can occur any time and without any warnings. They can range from accidents, loss of jobs, to sudden requirements of money. So, to build an account that centers completely on emergencies, you need to take into account of all your expenses you might need to cover you and your family for at least three to six months. You can open a long term maturity account, and through monthly deposits, you can have the high interest stack up. And, so, you will be able to cover yourself up even in the cases of highly expensive emergencies.
- Daily and monthly expenses account: You can easily create an account just for your daily and monthly expenses. The expenses might include groceries, utilities bill, education and books expenses, children’s demands and pocket money, etc. The account can also be used for your shopping habits and should also cover your restaurant outings etc.
- Business account: If you work a single job, then you can have a separate account just for that. Your salary will move straight to this account, along with all the money you might earn from side incomes. So, you will be able to accumulate all your hard earned income in one place and then move them around according to your desire.
Once you decide on creating your own multiple account system, do not forget to choose the option of linking all your accounts together, so that you can move funds between the accounts easily. We hope this answered your question of “How to increase savings”.