The beginning of the year is the period of time that gives you the most inspiration and energy to start putting your New Year’s Resolutions into actions. Is saving money one of your New Year’s resolutions? How can one start an effective savings habit? Below are some tips and suggestions on how you can get started for the New Year.
1. Evaluate your previous year’s expenses
Changing your savings habit is not as challenging as you may think, as you can easily start by making a list of personal income and monthly expenses. Once your list is created, differentiate your expenses into 2 categories – high priorities and low priorities. Your high priorities should include expenses used for house rent, mortgage payment, monthly bills such as electricity, water, etc. Money used for shopping, eating and entertainment should be allocated in low priorities. Differentiating your expenses can be a key to help you save money effectively. For instance, cutting down money spent on buying take-away coffee everyday and eating out at restaurants 3 times per week will help you to save a significant amount of money.
2. Cut down on your monthly expenses
Besides cutting down expenses used for low priorities, don’t forget to evaluate your high priorities list as well. Monthly expenses such as electricity, water, gas, etc. can also be cut down to help you save more effectively. Although they are irreplaceable needs, you can still reduce costs by using them more economically and smartly. Here are a few things you can do:
- Use energy saving light bulbs, water heaters, etc.
- Replace your cable TV package with a more affordable one
- Clean your air conditioner and start using it on power saving mode
3. Clear debts of previous year
Besides cleaning the house, you also should clean up debts of the previous year to welcome a prosperous new year. In particular, interest-bearing debts always need to be prioritized to avoid increased interest rates and late payment fees. Plan a periodical repayment timeline to manage your debts effectively. Strive for a new year without debt by cleaning up all your remaining debts!
4. Start saving to generate profit for the New Year
What are you planning to do with the amount of money you have managed to save for the previous year? Have you thought about putting this amount of idle money into work and start generating profit from it?
If you have a Timo account, you should put your savings into a Term Deposit instead of keeping it in your Spend Account. With only a few swipes and taps, you can own a savings account with an attractive set of interest rates – from 5.3 to 7.6% per year. While you can start opening a Term Deposit at only 1.000.000 VND, depending on the money you put in your Term Deposit, you will be suggested to split the amount into smaller accounts to minimize the loss of interest in cases when you need to withdraw some of your savings ahead of time.
From 5th July 2019, foreign nationals are no longer eligible for Goal Save Accounts as stated in Circular no. 48/2018/TT-NHNN. For Term Deposit Accounts, foreigners with a valid document proving residential status in Vietnam with at least 6 months validity will be eligible to open Term Deposit Accounts with a Term NOT greater than the remaining of its validity. Existing Term Deposits opened before 5th July 2019 will be continued until its maturity.
5. Use Goal Save to achieve your goals
In addition to Term Deposit, use flexible savings tools to achieve your short-term goals.
If you have a Timo account, you can easily do this with our smart savings feature – Goal Save. With Timo Goal Save, you can create inspirational names for your savings such as “Travelling around South East Asia” and set up your own automatic recurring contribution timeline. However, this is entirely flexible as you can also contribute money into your Goal Save manually, change your target date or target amount anytime you want.