Canada Finance Blog

Making The Most Out Of Your Savings Account

A savings account that’s has regular deposits can build up significantly over time. Unfortunately, there will always be events or accidents that will require you to take out a portion every now and then. For most people, this is unavoidable, but there are ways to minimize the withdrawals in order to maximize the account’s growth.

Instead of opening one account, you should have two or three different ones, each of which has a specific purpose. Aside from the general account, there should be one for emergencies. This can be for unexpected home repairs, medical bills or other events that cannot be foreseen.

Another account should be for holidays and vacations. While it’s important to save up for the long run, you should also treat yourself every once in awhile. This is the only account from which you can indulge yourself and buy what you want without feeling guilty afterwards. Your other accounts should be free from reckless spending.

Determining how much to put in for each category will depend on your own budget. Remember that expenses may come irregularly, so this month you might have to pay off a 500 dollar loan, while next month you only need to pay off your bills. Whether it’s only one dollar or 50 dollars each month, the most important consideration is to start now, and slowly adjust as you find your way around each item.