Taking control of money and personal finances is a difficult task. Keeping savings safe is not one of the subjects taught at school, so the lack of knowledge about how to achieve it is extremely large. One of the most repeated mistakes lies in the conjunction of savings and current expenses in the same account .
Keeping these two lines of money in the same book means not keeping strict control of the amounts that are intended to be saved, as well as a great reason for the expense account to increase. Now, experts not only recommend separating expenses and savings in two different accounts, but they urge dividing them into two different banks .
In this sense, one of the best ways to save, according to CNCB , is to divide the payroll in two different accounts registered in different banks, in such a way that the savings account is in bank A, while the current account is in bank B.
This trick works because it takes money away from the person. From here, the most sensible thing would be to go to the expense account for any circumstantial duty, in such a way that the temptation to extract the amount saved is removed. That is, hide the savings so as not to succumb to the intention of spending them .
The importance of creating a monthly budget
The first step in properly separating the two accounts is to create a monthly budget . Here you must include all fixed expenses, such as rent, food, electricity or water, among many other constants.
At this point, it is time to set aside a much smaller amount, destined for the most bland expenses such as dinner, going to the movies or a drink, in addition to a third destined for extraordinary expenses. All these duties will be taken from the checking account. All the remaining amount will go to the savings account .
You should also have a third account if you have a business
These two accounts are a great way to save for individuals. However, self-employed professionals should have a third more account. Employees do not have to carry the finances of a business, they only receive their payroll month by month at their bank. On the contrary, the self-employed and freelancers do have to save the money of a company .
For this reason, considering the need to separate savings and expenses in two different accounts, it is essential to create an account for business expenses. It is vital to differentiate between personal expenses and professional expenses , since all the person’s income will depend on it.