Banking Tools Can Help Boost Savings While Paying Off Debt

Banking Tools Can Help Boost Savings While Paying Off Debt

Paying off debt might seem like the most important thing to do for your financial health, but building up a savings buffer is just as critical. That way, when unexpected expenses come up, you’ll have funds set aside — and you won’t fall deeper into debt. Here are common banking tools to use that can help you pay off debt while adding to your savings. Having both a checking account for daily expenses and a savings account for an emergency fund and future expenses is key to managing your money. And using more than one of each account could help you reach more specific savings and debt payoff goals. "The simple act of separating individual goals can be helpful," says Hussein Ahmed, CEO of online bank Oxygen. Ahmed recommends using a "bucket" approach, setting up separate accounts (or buckets within one account, if your bank offers that feature), each dedicated to a specific purpose. You might have one checking account for regular expenses and another earmarked for paying off debt, one savings account to build up your emergency fund and …
More on: theindependent.com