How to manage your bank account?

I believe that every person should have a saving bank account. But the problem is how to manage a bank account? A saving account is a technique you use to deposit and keep your money securely for future use. But most people do (including me) is they deposite money and get back those money for various resons. That is not a good practice. You must save some money in your bank account not for immediate futre use, but as along term saving at least for another 5 years. You should not withdraw money from your saving account, unless it is very very important thing untill it reaches to the final time limit that you predicted, say five years.

Credit cards make you rich or poor?

Credit card is something like you getting a loan from a bank. Most people get poor by getting a credit card. There is a famous say that if you want to get rich you should first stop using credit cards. I think it is true because when you have a credit card, you don't afraid to spend. Because you know you have some backup money, and then when you see something interesting to you, even you dont need it at that time you are more likely to buy it because you know that you have not money but the credit cards in your pocket.

I have a friend in my office and he got a credit card from the most famous credit card bank in Sri Lanka HSBC. The first thing he did was buying a laptop to pay by installments. Now he have to pay more than Rs.8000/- per month and I know that his salary is not even that much. Now after 3 months he is trying to sell that laptop to pay the credit card balance.

What I think is having a credit card is not a problem but you have to keep it somewhere hidden in you pocket and you must completely forget that you have a credit card. My best choice is a debit card. There are lots of advantages having a debit card than a credit card. You can only spend what you have on you account and you will not need to pay it back. Other thing is, debit cards are not having a security theft.

The most important thing is that you have to remember to sped only what you have.