5 challenges that stop you from truly saving
Putting aside just a small percentage of your income, not keeping your savings in a separate account that you can’t easily access, and getting all your money tied up in investments – do any of these sound familiar? These are just some of the common mistakes you unknowingly make to be financially healthy.
Saving money is important and good intentions count, but make sure you’re not sabotaging your own efforts by committing these blunders.
You consider savings as a difficult chore.
Saving might not be the most enjoyable part of earning money, but you can always get creative and build a sizable fund for your short-term goals, your down payment on your first home, or your child’s education. While learning how to better save on your own, you can also find support on blogs, Facebook groups, or your own banking app to make your objectives happen.
You keep your ‘savings’ in a single bank account.
News flash: Your debit card isn’t a savings account. If you can easily access an account to pay your bills, make a debit purchase, or withdraw funds every day, then it’s time to consider keeping your actual savings at a different bank. Think of it as your untouchable bank account — something devoted to life goals and motivates you to keep saving.
You feel discouraged with transaction fees.
Moving your money from one account to another may have charges and you feel that the extra P50 or P100 transaction fee can be used for a more worthwhile cause. Try looking at digital banks such as the ING Savings Account that do not charge any unnecessary fees. Take advantage of promo offers as well to make the most out of your money and to grow your savings efficiently.
You save a tiny percentage of your monthly income.
If you think setting aside for retirement 5% or 10% of your monthly income is enough and you’re not even consistently hitting this target, then you’re in trouble. Try to save at least 15% of what you’re earning for the future. Save for other essentials, too, including an emergency fund. Slowly work your way up to 20% by slashing unnecessary spending and benefitting from your bank’s ultra-competitive interest rate offering.
Your savings are tied up in investments.
“My deposit account offers a measly interest rate anyway, so I’ll just invest all I want!” Everyone needs an emergency fund for unexpected expenses. These cash reserves can serve as your safety net without having to gain a little or lose a lot in an investment. Note, too, that investing is a long-term platform and you can’t always dip into your investment accounts for a sudden need.
In your saving journey, your bank should be a consistent ally. The country’s first all-digital banking platform, the ING Savings Account, lets you bank on your smartphone through a secure app — no bank visits or long lines. Simply deposit via interbank fund transfers (PESONet and InstaPay) or through mobile check deposit, another local first where you can take a photo of the check using your smartphone.
For an EXTENDED period, ING still offers a 4.0% interest rate per annum (p.a.) for balances of up to P10 million. Existing customers and newly-opened accounts will enjoy this high interest rate from November 1, 2019 to January 31, 2020. This is an increase from its previous 2.5% rate p.a. and is over 10 times higher than rates currently offered by other savings products in banks.
What’s more is that starting November 11, 2019, ING will take care of your bank transfer fees. Get P100 fee rebate for every successful online transfer to your ING Savings Account, with up to two fee rebates monthly until January 31, 2020.
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