Sunday, November 30, 2008
Instead of passively trying to save and simultaneously actively spending like there's no tomorrow, I've been researching online a couple of banks that offer monthly savings accounts that automatically transfer a specific amount of money each month from the account that the employer banks in the salary. It forces me to save plus it also helps me to keep track of my savings. It's easy to lose track of my expenditure although I have been religiously entering my daily expenditure. However, I've noticed that gradually I'm just entering my expenditures for the sake of doing so and there's still no control over the outflow of money. Psychologically it's easy for one to feel rich when looking at the lump sum in the account when withdrawing. Therefore, this method of saving would be the best. The interest rate is higher, given on a monthly basis and is based on how much money is deposited every month, i.e. there's flexibility. In addition, expenditure can also be curbed because I wouldn't touch the money in there. Only the remaining amount in the basic POSB account is allowed to be to be withdrawn.
It's different from a fixed account because I still have accessing to my own money in times of emergency and there's no tenure period (for a bank like DBS) although there is a 24 month tenure for OCBC so there'll be some kind of a penalty in the case of OCBC if there's early withdrawal @_@.
Serendipity believed today at 4:41 AM
