Personal Bank Accounts: A Guide to Secure Savings & Asset Management - Essay Sample

Introduction

A personal bank account (PBA) is a type of savings account that is not for business use but specifically for personal use. The reason behind the development of this type of account was to encourage people to save and manage their funds well. Individuals, therefore, used this account to save and manage their money and any other assets deem necessary to be kept in the bank. This account restricts its usage such that it allows only the account holder to make a deposit and withdrawal alone. Hence, PBA has many securities and controls that ensure that only one person accesses it.

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Furthermore, the account operates in such a way that one can run any time, and this means that an individual can deposits or withdraw funds anytime with no time limit. Additionally, the account relies entirely on individual effort and interest to save. Thus the account is limited to personal attitude to build it. Notably, this account is kept entirely separate from any other account, for instance, joint and business accounts, because it is entirely on the interest of one user rather than many.

Deposits

Deposits are the type of transaction that injects money into the account. The deposits made to personal accounts majorly comes from personal gains from different sources. For instance, my account mainly received deposits from my small businesses, dividends accruing from shares purchased in different companies, farming activities, and friend's contributions. Concerning business income, I always set a target such that with any amount that I received as a net income, I always save 40% of the total net income and the rest used to meet the daily expenses. With this personal target, it has helped me to build the culture of savings. Farming activities have also contributed much to the deposits I make to my account. I have always saved the surplus income resulting from the farming activities I engaged in after plowing back a certain percentage of the profit. Also, with respects to dividends I received from different companies I bought shares with, and I have continuously targeted to save 50% of it. The remaining amount reinvests to increase the number of stocks within the same company or other companies.

Furthermore, part of my deposits to my savings accounts comes from periodic friend's contribution in the form of Mary go round, and that has also boosted my deposits in my account. Most of my deposit generally is out of my personal decision, willingness, and personal target to save.

Withdrawals

Withdrawal is a type of transaction that reduces the amount in the account. One of the distinctive features of a Personal account is the fact that one plowing to the number of times, amount, nor time they withdraw. That means that an individual is free anytime to access their account and performed any transaction. About my account, most of the withdrawals are made to meet requirements such as food, clothes, school fees, and capital to expand or begin a new business venture. Food is the basic need of all the human; approximately 80% of my withdrawal goes to the purchased of daily foodstuff since it is a necessity that one cannot do without it. However, I have always managed to control by setting the maximum daily cost. Hence this has helped me to remain within the budget. School fees are also one of the main items that cause withdrawal. It, in fact, the main item that demands a considerable withdrawal and thus causing a lot of impact on my account.

Moreover, the need to start and even grow the already existing business have also formed parts of the requirements that demand withdrawal from my account. However, this need occurred once in a while, depending on the prevailing economic condition and the available opportunities. Notably, the decision to withdraw lies entirely with me, and therefore no one can influence me to withdraw for the sake of their interest.

From the two transactions, deposits, and withdrawals, it is noted that the most straightforward transaction to make is generally withdrawals and, most specifically, withdrawal to meets the daily cost of purchasing food. It is because food is a basic need that one cannot survive without it, and therefore, it is easier to decide to withdraw money to meet that necessity. Furthermore, withdrawal as a transaction is simple, unlike deposits, because it doesn't require any effort, and again, it can be completed within a short time.

To improve the balance in my PBA, I will endeavor to put more effort into generating more income and, at the same time, minimize expenses. That will result in a money surplus and, therefore, more savings. In essence, savings are what remain after spending, and this, in the long run, improves the balance in the personal Bank account. I will also embrace diversification of enterprises to ensure a continuous income and, therefore, more savings.