Saving Money for Beginners – part 2

„Saving Money for Beginners“ is part of a series of articles from our guest author Victor.


In a previous article (part 1 which you can read here), I suggested that paying yourself a monthly amount for your savings is as important as paying your monthly telephone, energy or water bills. I also suggested dedicating an amount between 10 USD/EUR to 100 USD/EUR (or equivalent) for savings.  

But now you need to put these amounts on the side, and, very important, make sure you cannot touch them.  

A savings account should not be the same account where you get your salary paid, or the one you use to pay your daily expenses. Otherwise, it will be very easy to lose an overview of how much money you have to spend and how much to save.  

Your savings account must be a separate account, where the money you put aside accumulates every month. Where you can also deposit every little extra amount of money you come across. It does not need to be an account that provides you with interest, but if that’s the case, even better. 

Do not try to be “clever” with your savings account. Some banks, for example, offer accounts in foreign currencies (CNY, USD, EUR, GPB, CHF, SGD, etc), but most of the time these cost extra. You do not want to pay extra for the benefit of saving money. It is better to start, build your capital up, and then start spreading your risk with different products.  

Be mean with yourself:

  • Make it as easy as possible to move money to your savings account but as difficult as possible to withdraw money.
  • Do not carry around the plastic card tied to your savings account and do not memorize the PIN number.
  • The savings account does not come with a card? Great!
  • Also, make sure the login and password credentials to your savings account are very difficult to memorize. So you cannot enter easily to withdraw money. 

It is important of course, to keep all the login credentials to your savings account as safe as possible.   

Additionally, you should shop around, and review all the possibilities before you select your savings account. It should not cost you extra! Saving money should not cost you money! Do not add extra unnecessary gimmicks: customizable cards with your photo,  and additional credit card (because of the rewards), and DO NOT accept the possibility of taking a loan with your new account.  

You can maybe go as far as to say that you do not want to receive any type of advertising or marketing material related to credit cards, loans or any additional financial product.  

Your savings account should be sacred. Nobody should have access and control over it. You will be thanking yourself after some years.  

Last but not least, do not lie to yourself. Your husband or wife saving money for you does not count as your own savings account. A friend holding money for you is also not a savings account. Your boss keeping a part of your salary for savings is not a savings account. Having a single account for all your expenses and also savings is not going to work.   

You are starting a project for yourself in 10, 20, 30 or 40 years from now. It is a terrible idea to lie to yourself in 50 years. Better be honest and start as soon as possible. 

Do you have suggestions on what to do best when looking for the best savings account?


Do you have any other tips? Feel free to share them with us.

(Please do not forget to subscribe to the article in order to receive notifications of further comments.) 

Did you like this article? Please rate it! 



Photo: Victor/Private

Rate this Article
0 votes
Order by: 
Per page:
  • There are no comments yet
These articles may also be of interest to you
Your savings bank account: be serious
05.11.2018 · by Victor
Try to save in each opportunity (but don’t exaggerate!)
10.10.2018 · by Victor
Have discipline and don’t lie to yourself
09.10.2018 · by Victor
Saving money is as important as paying your rent or your telephone bill
14.08.2018 · by Victor