Saving Money

Create A New Bank Account And Pay Yourself First For Better Savings

Mihir Patkar
At the start of a month, you're flush with cash and things are looking up. By the time the last week rolls around, you are skimping on small expenses. Sounds familiar? Not many people are good at saving money, but one of the best ways to start is to adopt the age-old financial advice of 'pay yourself first'.

The Get Rich Slowly blog has an easy implementation of this in which you create a second bank account -- a savings account -- and transfer all of your money there as soon as you receive your salary. Ideally, maky sure the savings account has a high interest rate. Also, it might be advisable to use a different bank to avoid the temptation of easy access to both your accounts.


On a weekly basis, transfer a certain amount of money from your Savings account to your Current account.


The idea is that once your money is in the savings account, at the end of the month, you don't have to think about what to do with the remnants or wonder why there are so few of them. It's already safe in your savings account, expanding with interest.


The blog also says you can do this on a large scale, where you can put a large part of your annual earnings into the savings account for the first few months, leaving you with a healthy cushion for the rest of the year.


How to save: Putting "pay yourself first" into practice | Get Rich Slowly



Comments are moderated and will be allowed if they are about the topic and not abusive.
Characters Remaining: 3000
To post this comment you must Log In/Connect with:

Get simple answers
to complex
questions

x
Recommended for you