Why You Should Setup Sub-saving Accounts

Have you ever thought you lost money?  You look in your pockets, your purse, you backtrack adding up all the thing you bought only to find that you spent it.  Have you ever looked in your bank accounts and had the same feeling?  It’s not a good feeling and usually throw your finances off track for sometime. Yes I have a blog giving advice on how to manage personal finances, but I still love to spend money.  Sometimes I do over spend the cash I have in my pocket, but that is just a couple dollars here and there.   Well, I am going to help you get this under control with sub-saving accounts.

What are sub-saving accounts?

These are accounts within your bank account.  If your bank has the feature to have multiple saving account, you can open saving accounts online to save for whatever you want.  Let say you want to buy a new car in two years, you can open an account and call it “New car fund” and have a percentage of your savings automatically sent to that account every month.  This will help you from spending your new car money and give you a little back up if your old car need fixing.

Sub-saving can be use to save for anything and is a great way to help you get in the habit of planning ahead.  This can also help you complete your goals on time, you eliminate one of the main two reasons our goals get side tracked… lack of funds.

There are a couple things to watch out for when setting up these sub-accounts.  I have found it is best to have money routed from you main saving account. Having it taken from your checking account can lead to the risk of being overdrawn.  If you need to, you can increase the amount being sent to your main saving account to accommodate and since more money is being taken out of your accounts be sure to keep a close eye on your checking at first.  Be careful if your bank has fees related to their saving accounts,  some banks still offer free checking and saving accounts.  If you have no idea how to setup these accounts, go talk to you account manager at your branch or call your bank.  You account manager is there to help and most people never utilize there service.  A good account manager should have the answer to all your questions and be able to help you with all your banking needs.

Having these sub-accounts will help reduce over spending and is simply just another great way to help you manage your money.

Popularity: 3% [?]

Posted by J.Scott and filed under Banking. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

Leave a Reply