Today we want to dedicate this article to the most savers and that is why in this sense we want to analyze the differences between putting your money in a paid account or a deposit. These options are the most demanded to make money profitable without taking any risk, the problem is that its profitability after the crisis has fallen and it is difficult to find offers that exceed 2% APR. On the othe...
Although there are many opinions in this regard, many experts recommend separating savings into three fundamental categories: the emergency fund, retirement and goals or challenges.
What part of my salary should I be saving each month?
At the beginning the important thing is to take the habit of saving. Over time, adjust that amount to your possibilities, taking into account your monthly recurring expenses. It may cost you a little to know exactly what the amount of all your usual expenses is to calculate what you have left over, use Good Finance both in your app or web version to see in the matter of seconds all the expenses of all your banks in the same site and organized by categories (gasoline, electricity, internet …), you won’t miss a cent!
But how can I save if I finish the month without a euro?
Being aware of the inflows and outflows of money (especially the latter) will help you make better spending choices by saving even without having to dispense with those whims that spice up this life. With the help of Good Finance you will be able to see at a glance what happens to all your accounts without having to walk squares or cumbersome tickets.
You may get more of a surprise, especially when you discover that you do not spend so much on restaurants and that there is a leak in the gasoline game, or you discover that it is time to change your telephone company … Spending in an intelligent way will help you to boost your saving capacity Guaranteed!
I am paying a loan How do I balance the savings with the payment of the debt?
How to allocate your earnings between saving and paying your debts is up to you, although it is very important to keep both items up to date, even if that means saving a minimum amount each month … This way, you will take your debts up to date and if you meet with an unexpected expense, you will have money in the bank to protect you from new indebtedness. Why is it not convenient to keep my savings in checking the account with the rest of my money?
It may seem easier to have all your money in the same checking account and use it whenever you need it.
In the checking account you should only have the money that you will use every day. Keeping your savings in another account will help you manage yourself better and above all, avoid temptations … Ideally, that savings account is completely online to avoid commissions and allows you to create sub savings accounts to differentiate your emergency fund from, for example, your savings goals. In this way, you will be aware of how much money you have for each goal avoiding diffuse mental accounting?
Where to deposit the saved?
There are savings accounts and deposits that offer a return on investment at the rate of each and with different penalties (or without them) depending on the type of access to money. The main difference is that savings accounts offer more liquidity, and deposits greater profitability.
The best option in terms of deposits are “demand deposits” that allow you to cancel them at any time and make total or partial cash withdrawals without changing the profitability of the product.