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Become an Effective Money Manager



Become an Effective Money Manager

Old way:

We have one bank account where income comes and use the same account to spend and save.

New way:

Have three bank a/cs

Income a/c: All income comes here

Spend a/c: All spending happens from here

Save a/c: Short term savings

Spend a/c:

Transfer monthly spending from Income a/c to Spend a/c in the beginning of the month.

Use Spend a/c debit card for purchases and cash withdrawals.

Slow down spending or postpone to next month as the monthly budget gets exhausted.

Save a/c:

Liquid Fund or a separate bank a/c can be your Save a/c

Transfer monthly from your Income a/c to Save a/c

All short term savings needs will stay here like kid's school fees, insurance renewal premium, vacation & any other upcoming big spending.

Income a/c:

Let all EMIs and SIP continue to go from Income a/c

Try it and share your experience.

This will help you to be aware of where my money is going.


There will always be liquidity available for guilt free spending.


Things you can control: your savings, your spending.


Save when you can so you have more options and control when you can't.

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