Written by R. A. Stewart
These days people have bank accounts for different kinds of purposes depending on what the money is being used for. Having your money in separate accounts helps avoid the temptation to spend. Here are some of the most common types of bank accounts people have.
- Personal Savings Account
This is the account most people get their pay credited to. It is a spending account for everyday living such as groceries, car running costs, etc. Most people have their fixed bills such as newspaper subscriptions, power bills, and rent directly debited from this account.
- Rainy Day Account
This is for unexpected expenses such as car break downs, appliance repairs, school expenses, etc.
- Retirement Account
It is essential to have some kind of retirement account. New Zealand’s retirement scheme is called Kiwisaver. It takes vision to make provision for your later years. It is also the responsible and mature thing to do. If there is one thing which your future you will thank you for it is that in your present you have made consistent contributions to your retirement account.
- Rent or Rates account
This needs to be kept separate from an account you use for your everyday transactions because what you do not need is to be short of money when it comes to paying your rates or rent.
- Insurance bill account
Paying insurance is not cheap, whether it is house or contents insurance, or vehicle insurance and keeping a separate account for this will give you a peace of mind when it comes to paying it.
- Travel Spending Money account
This account is for your holiday spending money; this is discretionary spending money. You should not have a credit card for any reason, especially for travel expenses. If you cannot even save your holiday spending money then stay home.
- Travel Airfares account
The same rules as your travel spending money account.
- Investment accounts
Investing your money grows your wealth. In order to grow your wealth for your future you must invest in several places. Investing not only grows your wealth, it also grows your financial literacy.
- Debit card for online transactions
Having a debit card for purchasing stuff online is convenient. A debit card is not for saving whether short-term or long-term. It can be easy to fall victim to a bank scam with a debit card. All it takes is for you to lose your card so only have what you need in this account.
Power Saving Hack: If you have a freezer and there is a lot of empty space in it then get some empty soft drink bottles and fill them with water and put them in the freezer. A part empty freezer uses more power than a full one.
About this Article
This article is of the opinion of the writer and is not financial advice. It may not be applicable to your personal circumstances therefore discretion is advised. You may use this article as content for your blog/website or ebook.
Read my other articles on www.robertastewart.com
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