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  • Category: Miscellaneous

    Do you withdraw whole salary from bank or keep some for future exigencies ?

    Now a days the companies and even government organisations are preferring paying of salaries and other benefits through the employees bank account and thus even before the due date, some times we get salaries credited to our account with a message from the bank. There are people who does not want to keep any balance in their account and would withdraw it fully. But there are people who plan for the future exigencies and make provision for that. What is your action on this. Do you keep some money in the account itself for future needs or withdraw every thing ?
  • #611898
    Practical dilemma of many middle class families, many times withdrawing the whole salary also looks insufficient for monthly expenses ( for instance this september and october).

    If one has family welath, backup and a decent sum parked away for future use or if someone is working or employed for reasons other than earning a living, then these are the individuals who are likely to withdraw it fully.

    Coming from a middle class, I can't dream of withdrawing the entire lot. The fear of EMIs, term fees for children, household expenses are stark but true reminders for tightening the purse and keep some for the rainy day.

    Spend after you save and NOT Save after you spend.. Warren Buffet.

  • #611900
    Now it is a rule that any amount more than Rs.5000/- can't be paid as cash by any company to their employees. It is common for all organisations both Government and Private. It is mandatory that payments should be made through the bank. These days people are going for more online transactions. I pay all my payments including my milk expenditure monthly will be online transfers only. I pay cash for paper bill and servant maid. All other payments are online only. So there is no question of drawing the full salary from the bank. Even my LIC premium, loan amount, and other payouts also will go from the bank as preset instructions online. When I go on camps my complete expenses will be with my credit card and credit card payment will go from the bank account. Only once or twice as required I draw cash from ATM for expenses for vegetables. fruits and other incidental expenses. By doing this I am not able to understand how much is left in the account. So once in 15 days or so, I will just open my account and see the position. Generally, there will be some balance always.
    always confident

  • #611922
    These days many working people are getting their salaries through Banks. Hence withdrawal of money from the account become necessitated. I think the majority will opt for partial withdrawal. As stated above in a response many payments are to be made through bank accounts, like payments of bills, debit card use, etc. For all this some balance must be there.
    Additionally if kept as cash in hand, unexpected expenditure will also occur. Above all now one has to keep a minimum balance in the account.

    Gold Member ISC

  • #611924
    According to me, I used to draw cash from my savings bank account only for payments to be met cash only otherwise I used to use y credit card for all expenses which has no additional charges.

  • #611982
    I remember replying to a similar thread earlier. However, coming to the question; I have the habit of withdrawing my full salary at one go. I keep aside money for my utility bill payments, card payments etc and then I deposit the excess money into my savings account after keeping some cash in hand. For my rest unexpected expenses, I either use the credit card or if the cash in hand is sufficient, I will use it.

    Why I don't keep money in my salary account is, when I have money I will have the tendency to take it and will end up with no savings. So I always feel it is better to send some money to my savings account so that I can convert it into a FD once it becomes a lump-sum amount, so that I will not spend my money lavishly.

    "Do not give up, things might not favour you always"

  • #612003
    In my first job salary was disbursed in cash in 'pay packets'. For the convenience of those working in night shifts and second shifts, the salary was distributed from the special counter in the employees quarters for a few hours. Then it was taken to disburse at the plant/office.

    Depending on the shift I was in, at the immediately available time slot, I used to go to the post office first to send Money Order to my father, and then to the bank to put some money in my savings bank account. (Both offices were located in the same building.) The rest of money was used to take advance coupons for canteen food, and for buying other necessities in due course. This used to be my habit and routine until I got job in bank. In bank the salary was credited to my account.

    But I made it a point NOT TO withdraw my salary on the salary day. It was sentimental for me to see my salary remain in full at least for one day. Next day or later,I used to withdraw the money needed for the first two weeks. Depending on the balance in hand I used to withdraw the further money needed.

    Gradually when salary and financial position became better and reasonably comfortable, I could have some relaxation and cushion period to withdraw from my salary. Many payments could be made by cheque also.
    But all through I saw to it that I paid milkman, paperboy, and other similar service providers on the first or second day of the month.

  • #612008
    The responses were good. One of my relative daughter has the habit of saving all the coins that is left out with the family members and one fine morning it becomes a big amount for a major use.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #612014
    Theoretically speaking we should not withdraw more than 60 to 70% of our salary in a month. In view of the present inflation rate and our responsibilities towards our family and society we must manage our monthly expenditure to above limit.

    Some people say that it is not possible to manage with that amount. My opinion in this regard is if you can not manage within that amount then you cannot manage with any amount.

    Money is a thing which once you start spending goes out of your hands and does not comeback so easily from sources of your income. Discipline in money management is the foremost requirement in our life.

    If we want to live lavishly with a modern lifestyle we have to generate more income otherwise we will be under debt to card companies and banks and will have miserable life. So the basic Mantra is to manage within our means and save a significant part of our income for a rainy day.

    Knowledge is power.

  • #612018
    #612003: well said, paying for home utilities. there are people who struggle to make ends meet by delivering milk, newspapers, flowers, vegetables and the maids at home. The depend on the meager amounts paid every month. These people should be paid promptly on time so that they can use the money in time for day to day needs.

  • #612033
    In my bank salary account, I keep a sum (15%) known as 'Growing Fund'. I don't draw it at any cost. At the end of the financial year, I withdraw the accumulated sum and invest it as fixed deposit to fetch good interest.
    No life without Sun

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