How I did it: Well, I started off having a direct debit from my transaction account into my savings account, but ended up constantly withdrawing money from the savings account. I decided to get the savings account with a different bank that had the highest interest and also decided not to get a debit card so that taking money out would be harder.

After a while I started to take money out of the savings account, because the amount I was depositing was too high. So I cancelled my direct debit and just transferred money on the internet every pay. I found this a lot better as it meant that I could just transfer what I could afford and not end up withdrawing from savings. Also, I was being charged $5 extra each week for the bank to transfer the money for me.

I did have a few times when money was low so I took a chunk of money out of my savings, so I would suggest having maybe three bank accounts - one for everyday transactions, one for your long term savings goal, and a third where you can put money away for unexpected expenses or if you need to take time off work so aren't getting paid.
I ended up doing this and would just take money out of the unexpected expenses account rather than the savings one. Helped me a lot.

Lessons & tips: If you are like me, only put away the amount of money that you are sure you can spare. Otherwise, you will not only withdraw the money you have recently put in but also money from previous deposits.

Also, having 3 accounts is a good idea so that you don't need to go near your savings account at all.

Resources: Separate bank accounts, starting a second job, tax returns, internet banking, high interest rates :)

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Sep 12, 09:42AM PDT | 0 comments | 1 cheer