Using Virtual Bank Accounts to Reach Savings Goals

Saving for the future is important.  We all know this to be a fact, nevertheless for some people saving money remains a challenging aspect of managing their finances.  There are many obstacles that can make saving for the future difficult, however for most people there are two main problem areas.  The first being a lack of money to apply toward savings and the second, managing savings in a way that makes reaching savings goals a reality.  For an average person, these two issues rank high on the list of reasons why saving money is difficult.  Overcoming these obstacles is imperative if you want to achieve financial security.

Photo by Alan Cleaver via Flickr

Make Saving Non-Negotiable

Saving money cannot be an option if you want to reach your goals.  This is true regardless of how much money you have available in your budget.  For some people, it is just a matter of cutting back on certain areas of spending.  A simple search on the Internet will turn up thousands of articles on the subject.

Other consumers have to be a bit more resourceful to work savings into their budget.  The key is making a commitment to yourself that a certain amount of money will be set aside out of each paycheck for savings.  Some call it “paying yourself first“, others treat savings as an expense.  Whichever method works for you, as long as you are consistently putting money back toward financial goals.  When you begin treating your savings contributions as a non-negotiable cost, you take the first step toward better money management.

Take Advantage of Online Tools

Like so many other aspects of society, the Internet has changed the way people manage their money.  Banks and other financial institutions offer online services to help customers maintain their accounts.  Virtual banks are growing in popularity as they offer many benefits the brick and mortar banks do not.

In addition to online features offered by banks, other online tools are available to make it even easier to meet savings goals.  Instead of maintaining several accounts for your different savings goals, you can combine a virtual bank with online templates to create “sub-accounts”.  For example, instead of depositing money into one account for your vacation fund, another account for your emergency fund and a third account designated for holiday spending, you can simply make one deposit into a single savings account.  By using online tools, you can create mini accounts within the main savings account and track how much money you have saved toward each savings goal.  This allows users to reduce the time spent managing multiple savings accounts while at the same time providing up-to-date information regarding the status of your savings goals.

There are dozens of scenarios where online tools can help consumers manage their personal finances better — from creating a budget to tracking expenses or using a savings calculator spreadsheet. There are also other free tools, such as spreadsheet templates and financial calculators, to make the process easier and more efficient.  In doing so, consumers gain the knowledge and confidence needed to take control over their personal finances.  It is at this point where the journey to financial independence begins.

About the Author

By , on Jan 26, 2011
author
Debbie Dragon is a freelance writer specializing in personal finance. She frequently writes for Vertex42.com which offers a large selection of free spreadsheet templates and financial calculators.

Best Bank Rates

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Disclaimer

The information on this site is strictly the author's opinion. It does NOT constitute financial, legal, or other advice of any kind. You should consult with a certified adviser for advice to your specific circumstances.

While we try to ensure that the information on this site is accurate at the time of publication, information about third party products and services do change without notice. Please visit the official site for up-to-date information.

For additional information, please review our legal disclaimers and privacy policy.

Notice

Moolanomy has affiliate relationships with some companies ("advertisers") and may be compensated if consumers choose to buy or subscribe to a product or service via our links. Our content is not provided or commissioned by our advertisers. Opinions expressed here are author's alone, not those of our advertisers, and have not been reviewed, approved or otherwise endorsed by our advertisers.