Saving money is the foundation of financial stability and can lead us to wealth. When it comes to saving money, we shouldn't compromise our quality of life too much. We need to save without making ourselves struggle or feel deprived while still enjoying our lifestyle. But how can we achieve this? Let's find out!

How to Save Money Without Struggling

To save money without making life difficult, we first need to distinguish between necessary expenses and those that are excessive. It's clear that we need to cut out unnecessary expenses. Let's look at an example of income and expenses:

Example: Mr. A has a monthly income of 20,000 Baht after taxes and social security deductions. His expenses are as follows:

  • Rent: 3,000 Baht per month
  • Car loan: 5,000 Baht per month
  • Food and daily expenses: 10,000 Baht per month
  • Phone bill: 300 Baht per month
  • Savings: 1,700 Baht per month

From Mr. A's example, we can see that the high daily expenses of 10,000 Baht per month are significantly reducing his savings. Let's break down those monthly expenses:

  • Coffee at 100 Baht per cup, consumed daily amounts to 3,000 Baht
  • Food at 200 Baht per day totals 6,400 Baht
  • Other expenses: 600 Baht per month

From this simple example, we can identify that the excessive expense is the coffee. A way to increase savings in this case is to reduce coffee spending. If he switches to a 50 Baht cup, he could save an additional 1,500 Baht per month. Alternatively, if he still wants to enjoy that brand, he could limit his consumption to a few times a week, which would also leave him with more savings.

What to Do with Your Savings

For those who dislike risk, keeping cash at home is not advisable, nor is it wise to keep it in a savings account where it's easy to withdraw.

Recommendation: We should keep some money in a savings account for genuine emergencies, and it should be linked to an ATM for easy access. However, serious savings should be kept in a fixed deposit account that is harder to access, with no ATM card available, and withdrawals can only be made after the term ends at the bank branch, making it more challenging to access.

Let's look at Mr. A's increased savings. By changing his coffee habits, he can increase his savings from 1,700 Baht to 3,200 Baht per month. Over a year, that amounts to 3,200 x 12 = 38,400 Baht, which is a significant sum!

Top 5 Banks Offering the Highest Interest Rates!

Now, let's take a look at the top 5 banks offering the highest fixed deposit interest rates (data from 2017 to early 2018):

  • 1st: Citibank - Regular fixed deposit account with an interest rate of 1.6% - 2%
  • 2nd: Land and Houses Bank - Special fixed deposit account with an interest rate of 1.85%
  • 3rd: Thai Credit Bank - Special fixed deposit account with an interest rate of 1.8%
  • 4th: Government Housing Bank - Fixed deposit account with an interest rate of 1.55% - 1.75%
  • 5th: Krungsri Bank - Special fixed deposit account with an interest rate of 1.75%

However, please note that interest rates and account types may change from the information presented. For those of us saving money, it's best to inquire directly with bank staff for the most accurate information.

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Written by: Mr. Ordinary Glasses

www.dooddot.com