We’ve all had moments in our lives where we are mindlessly saving or just aren’t sure what to save for. Following our article on the best savings accounts for working adults, we need to consider the type of saving accounts we should be opening and what to use them for!
Expenses
Short term expenses
When deciding on your expenses you would want to set aside one for your day-to-day spending. With money in your bank, you would be able to withdraw it as and when you want and not have to worry about leaving your cash at home. The important factor when picking an account is to identify to most convenient and readily available bank out there.
An ideal choice would be OCBC, there is an appropriate number of OCBC banks around the island and there are usually little or no queues!
Long-term goals
Another expense you should consider setting aside would be for your long-term goals, there is usually no need for a separate account but if you happen to be the type that does not keep track of expenses as diligently, it would be best to have one.
Additionally, you can pick a high-interest savings account that will allow your money to grow until you decide to use it. Here are a few saving accounts with no conditions!
Savings
Long-term savings
The most basic form of financial planning is to ensure you have savings and expense account, find one with high interest which will grow your money long term.
Joint account
Also, consider having a joint account (with your significant other or family member) for joint expenses. This will ease the headache of having to identify exactly how much has been spent or contributed from each side.
Wealth
Taking it one step further, set up a Regular Saving Plan which will be automatically deducted and will be used to buy STI ETF for your wealth account.
| Advantage | Disadvantage |
|---|---|
| Keep track of multiple saving goals | Hard to reach minimum balance requirements |
| Multiple perks | Hard to track finances |
| Separates savings and expenses | Building banking relationships harder |
Too much of a good thing can be bad! Although it may be good to have multiple accounts to do brain cracking work for you, it can also be a bad thing because you might just lose track of all the accounts. Identify your needs and open up the necessary accounts to fulfill those needs! Having a financial tracker would be of great help because that way you can keep track of all your accounts and know how much you’re spending!
Advertisement
