Saving more effectively
Saving can be tough. It’s simply too hard to keep track of all your money and know that you are saving the right amount for all of your expenses. If you are one of the many people who find saving money difficult, can’t keep track of their money with respect to their monthly expenses, or realizes that they are short of money every month, try this simple technique.
Every month when you get your paycheck, have automatic transfers set up that will move money into each account. At my bank, I have 7 savings accounts, each one labeled for a different major expense: rent, food, utilities, entertainment, tuition and books, savings, and an emergency fund. Every month when I get my paycheck, my bank automatically transfers the money from my checking account into each sub-account. Without having to worry about managing my money and keeping track of various bills, I know exactly how much money I have in each account so that I don’t accidentally spend money meant for my savings or for books.
An easy, effective way to force yourself to stay disciplined and save is to open multiple accounts and have the bank create automatic transfers for each sub-account. This will force you to save and make managing your money for each of your expenses much easier!
Setting up the logistics:
If you get paid on the first of every month, wait a few days to set up the transfer from your checking account to each sub-account just in case there is any delay or problems with your paycheck. On the 5th of each month, transfer money from your checking account to each sub-account. Then pay your bills as each bill rolls in. If you want to make your life really easy, you can call every company that sends you a bill and ask them to create a billing cycle that ends at the preferred time of your choosing (the beginning of each month works best). This way, you only have to sit down once each month to pay every bill as opposed to paying each bill as they trickle in and possibly missing one. j
~ Monte Malhotra, Student Investment Expert, Campus Calm