When budgeting for a future expense, the obvious path to choose is a savings account. If you already have a basic savings account dedicated to growing funds for something special, you might ask, “Why would I need another?”
The simple answer: every penny in your basic savings account probably isn’t going towards one single expense. No matter how much you have acquired, the process of dividing this sum between future goals requires some serious mental calculations. This method makes it difficult to keep track of what you actually have.
Rethink your financial organization by checking out the benefits of multiple savings accounts for budgeting.
Goal-Oriented Saving
Achieving your financial goals can feel overwhelming with only one form of savings under your belt. Poor budgeting, misspending, and last-minute transfers from your checking are bound to happen.
By setting up additional savings accounts, you allocate an amount of change to the savings goals that matter to you most — and even personalize them with what you’re saving for! Naming your additional savings accounts with something like “Summer Getaway Fund” or “Kitchen Renovation” is an easy step that will go a long way in keeping your finances organized.
Automated Transfers
Manually transferring funds from checking to savings on payday is a thing of the past. Avoid building a single large balance by setting up automatic transfers to your savings accounts.
Hoping to reach your “Summer Getaway” savings goal as soon as possible? Use Discovery FCU’s automated transfer feature to send funds from your checking on a schedule that works for you. You’ll reap the benefits of watching your custom savings account flourish without ever having to transfer manually again!
Customization for Better Saving Habits
As previously mentioned, customizing your various savings accounts is the best way to keep track of your financial goals.
By creating an account for any major investments in your future, you’ll be motivated to dedicate funds to priorities. And with customized savings accounts, you can expect your finances and saving habits to grow. How much you send to specific accounts and how often you make automatic transfers is a game of trial and error — but it will build a strong saving routine.
Zero Monthly Fees
We can’t speak for other credit unions or banks, but as a member of Discovery FCU, you never have to worry about a minimum deposit or monthly fee when you set up a savings account. Open an account at any time — all you need is a minimum balance of $5 to start saving!
Ready to open an account and work towards something special? Apply for a membership with Discovery FCU today!