Budgeting is a simple concept of putting some money for you or your children’s future.

Everyone has learned the importance to budgeting and saving but many have not been successful at putting it into practice effectively.

Your expenses MUST NOT = Your income 

This leads you to have NO positive cash flow. Which is no good…

If you are not able to put money aside and invest for your future, you will be trapped in the “Rat Race”.

It is a never ending cycle where you’re just working for money and there’s no financial progress since the moment you started working.

Pros And Shortcomings Of Using Alternative/Sub-accounts To Separate Out Savings

You may have an alternative bank account where you have been squirrelling savings away with some success.

If you have, you can consider sub-accounts and OCBC for example has such a feature.

OCBC online banking has a “SAVINGS GOAL FEATURE”.

By setting a goal, a sub-account is created and it will automatically calculate how much per month you need to allocate to this goal to achieve that target.

For example, if you want to $100,000 for a house upgrade, you’d need to move $1,235 per month till Dec2025 to achieve that.

Once your savings have been moved into your goal, you CANNOT withdraw it from your bank account.

However, this amount of money is still visible to you online. You can still move back the money from this sub-account back into your main account ANY TIME.

From my experience in budget planning, this can work if you have been saving relatively well. If you are struggling to save, having sub-accounts will NOT be sufficient.

To learn more about the 3 steps, read more here: https://www.theastuteparent.com/2019/04/how-to-save-money/

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