Question

Why is it a good idea to treat your savings account as a fixed expense each month? Money can be deposited before it is used for discretionary spending. It is another source of income. Loans can be paid off faster instead of spending the money. More income is earned by accruing more interest.

Answer 1

It is better to treat it like a fixed expense because then you won't have the temptation of spending money where you don't need to spend it. Also you can put and interest on it to build up the money.

Hope this helps!