Earning is huge, yet savings are zero… This triple account formula will be useful, you will remain happy!
Savings are not possible even after earning
In today’s time, everyone is working hard to earn and wants to save some of it and invest in such a place where his money keeps growing. But, it also happens with some people that their income is excellent, but despite this they are not able to save. The reason behind this is various types of expenses, which exceed the income. In such a situation, it is very important to create a balance between saving, spending and investing your income. The formula of 3 accounts can be useful in this. Let’s know how we can make this difficulty easier?
This is necessary for the triple account formula
In this era of inflation, expenses are continuously increasing and a large part of the income earned every month goes into it. In such a situation, it becomes very important to manage it to shape the future. If you establish a proper balance between saving, spending and investing, then no one can stop you from being successful on the financial front. The formula of three bank accounts proves to be very effective especially for such people, who often complain that they earn a lot, but do not know where the money is spent.
First- Income Account
Now let’s understand how the triple account formula works, so if you are employed, then your salary will be coming to your bank account every month. Or if you do any business, then your money must be coming in your current account. This can be named first account or income account. This means that this account tells about your monthly earnings. Not only salary, but apart from this, if you are getting income from any other source, then put it in this account also, this will help you to know what is your total income in the month.
Second- Spend Account
From the first account you will have complete knowledge of your monthly income, then after this, comes the turn of the second bank account, which can be named Spend Account. It is clear from the name that it is related to the information about your expenses. All you have to do. Make a list of your important expenses every month and accordingly, transfer the amount from the income account to this account and manage them from this. In such a situation, through this second account, the complete account of the monthly expenses will be in front of you.Now try to control unnecessary expenses.
Third- Investment Account
Once you have established a balance between the income and expenditure in both the accounts, then it will be time to take the next step. The next account will be savings and investment account. This means that after every monthly expenditure,you will have to transfer a part of the money saved in your first account to this account and you will be able to invest it in any such place or scheme where you can get excellent returns. It would be good that after maintaining the list of expenses, deposit a fixed amount in this investment account from your income account every month.
This will have the advantage that the fixed amount to be invested will not have to be managed anywhere else. You can invest every month through this account. However, also keep in mind that do not start investing with too much amount in the initial phase, because this can affect your budget. Increase your investment gradually as your income increases.
This way wil make you financially strong year by year
Through this formula, you will have complete details related to income, monthly expenses and investments through three bank accounts and with this, your complaint about where the money is spent even after earning a lot will be completely removed. It is not known whether they are there or not. With this, your investments will also start, which will strengthen you financially.