You already have short-term and long-term goals in mind. The next step is to understand how to save effectively. When it comes to saving money, individual preferences need to be considered carefully, said Linda Wu, her manager of products for managing her rate products and consumer deposit products in the United States. Bank. Here, Wu shares the questions she should ask herself and the storage strategies to consider based on her answers.
Short-term saving or long-term saving
- Do you prioritize travel and new experiences? It works for short-term memorization of events that you already expected, such as b. Your next adventure. Do you like preparing for the unknown? A long-term savings plan is a great way to plan ahead—perfect for retirement, emergency funds, or when there’s an unknown payment schedule. Money account calls or a traditional savings account Would you rather do it “old school”? If you feel more traditional and prefer to write with pen and paper, you can write checks to your overnight savings account. Want to stay up to date with the latest technology? If you’re tech-savvy, consider a savings account that allows you to transfer funds electronically.
Auto-save or manual transfers
- Do you have a busy, social lifestyle? If you don’t have a lot of time and want to route money into your savings account(s) at fixed intervals, set up an auto-save.
- Is the organization an important part of your lifestyle? If you prefer seeing money go from one account to another when needed, make manual transfers.
Micro-saving or segmenting savings
- Are you young, or just starting to save? Even saving a few dollars at a time will gradually add up. Doing this consistently will enable compound interest to build over time.
- Are you looking after a family, or balancing multiple goals? For multiple savings goals, it may be useful to mentally or visually separate them into categories. Those buckets can help you track each balance so your general saving progress is clear.
