We come across scores of people who beg for your money. These people may seem rare to you but they are very common. It is natural for a salaried employee to run out of money within a month and need to beg with others will arise. Such people have some peculiar characteristics in their finances. They are listed below.

  • These people only have 1 bank account. That is their Salary Account. If there more than 1 also, they are all inoperative salary accounts only.
  • The account balances always swings between gross salary amount and a small residual amounts normally less than 1000 rupees. Balance shoots up beyond gross salary levels only when the bonus is issued.
  • They are like the ones shown by Filter Copy’s Video. Quite stereotypical they are.
  • One medical emergency can shaft them majestically. Their health insurance is given by their employer. It is not by themselves.
  • On salary day (or Sunday that comes after it), they go out with their family for a party.
  • They allocate for groceries next. Their EMIs, Bills, Payments would have whittled down balances when they allocate money for groceries. In essence, they are spending first. Don’t ask about savings, won’t be happening with them.

Saving Tips, The key component of getting out of rut:

As I said previously, the people beg because they have only 1 bank account. So, no matter how many have given saving tips to you, it won’t work out effectively till you are stuck at the salary account level. The 2nd account is the key to your financial ascendancy. Call this second account “emergency corpus”. More balance stays in this second account, safer you are.

There is a thumb rule with the money that should be present in the emergency corpus. The balance should be at least 25% of your health insurance and top-ups + 6 months of your budgeted expenses, EMIs, compulsory payments etc… Alternatively, you can keep the emergency corpus in liquid funds, overnight funds. In that case, every saving instruments will be funded by this account.

I personally use this model of default debit account. You can set up standing instruction with your salary account to transfer to this account. Use this to debit for All the SIPs and other things. Salary is delayed! Fund this by the emergency corpus.


In simple words, your 2nd bank account brings stability. Since the 2nd account is a personal one, the whole savings options get enabled. Even my financial ascendancy started after I opened my 2nd account. The 2nd account greatly reduces your constraints. Your account’s Passbook is also an address proof. You can build big savings empire only if you make saving effortless. Savings will be effortless only when the emergency corpus is in place.

You can go through this personal finance planning steps, to cover all the finance basics. Following these basics is easy if you have 2 accounts. Remember the 2nd account is your account, 1st one is salary account. Your account is permanent, salary is not.

You can save only if you have your account. Your salary account is tied to your employer not you.