Savings goals: Setting and achieving milestones with your savings account

A savings bank account is an imperative financial avenue that assists individuals in better managing their finances and saving for their future needs. The avenue offers a secure and safe haven to store your funds while earning you interest on the funds parked. In India, for decades, a savings account has been the preferred choice for individuals and families. However, merely having a savings bank account is not enough, one must set and attain milestones to make the most out of it. Discussed here are the practical tips to set and achieve milestones using a savings account. 

• Set realistic and clear savings objectives

The initial step towards attaining milestones using your savings account is to set realistic savings objectives. Such goals might involve short-term objectives like financing a vacation or buying a new gadget or long-term financial objectives such as retirement planning, purchasing a home or financing your kid’s higher education. Be specific about the amount you are looking to save and the timeline by which you want to attain the goals. 

• Create a month-on-month plan for savings

After fixing your savings objectives, prepare a month-on-month savings plan to attain them. Begin by evaluating your income and expenditures and then determine the amount you can save comfortably every month with zero compromises on your essential requirements. Allocate a particular portion of your income towards a savings bank account and make it a priority to deposit this amount consistently every month. 

• Automate your savings

One of the simplest ways by which you can ensure to attain your savings milestones is to automate the procedure to save funds. Most financial institutions offer the option to set up auto transfers from your current or salary account to your personal savings bank account. In this way, you can ensure a fixed amount of your income is saved every month without any manual interference. 

• Keep check of your progress

Periodically assess the progress of the savings. This is essential for remaining on track and attaining your milestones. Assess your savings bank statements at least once a quarter to evaluate if you are on the right track to meet your savings objectives. If you find you are falling short, then consider adjusting your month-on-month savings plan or reassessing your financial goals. 

• Look for higher interest rates

Distinct accounts may provide differing rate of interest. To enhance your returns, it is necessary for you to select an account that endows competitive rates. Periodically assess the rate of interest being offered and consider switching to other bank account variants if you find a better rate being offered. 

• Avoid unnecessary withdrawals

To attain your savings milestone, it is crucial for you to avoid unnecessary withdrawals from your savings bank account. Treat your bank account as a contingency fund and avoid dipping into it to meet any unnecessary expenditure. This discipline will assist you in accumulating your savings quickly and reaching your milestones within the anticipated time horizon. 

Ending note

Attaining milestones using your savings bank account requires proper planning and discipline. By setting realistic savings objectives, preparing a month-on-month savings plan, automating your savings, assessing your progress, seeking a higher rate of interest, and avoiding unnecessary withdrawals, you can make your bank account work for you and assist you achieve financial milestones.

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