Personal Finance

5 Reasons You Need A Savings Account

Not everyone understands the true benefit of always having a healthy savings account.  With a little money stored away, you open up new levels of financial security for yourself and your future.  

If you’re not yet convinced of the pertinence of maintaining a savings account, allow yourself some time to explore.  Check out some crucial reasons why you need a savings account to live a truly comfortable life.  

In the case of an emergency

There is no way you can know when or if a major financial impact will occur throughout life.  What you can count on is that it will happen. You can offer yourself added security by always having a stash of cash on standby.  

Your car could break down.  Your kid could need braces. You may need to hire a lawyer.  You could get caught in a natural disaster.  Whatever the case may be, it helps to know you have money to begin rectifying the situation.  

It helps build a positive financial record

If you always have a savings account available, you will be less likely to overextend yourself with credit cards and personal loans.  Amassing funds within your savings account will set you up to make large purchases with less struggle.  

If you do choose to opt into a credit card to build your credit, it’s much easier when you have money sitting in the bank.  Essentially, you can simply rotate your money to build your financial standings on paper.  

The safety of storing your money in a bank

Storing your money in a savings account at a bank eliminates the opportunity for sticky hands.  If you have the money sitting around your house, you run the risk of being robbed.  

Stashing funds in a bank gives you an automatic assurance that your funds will be available to you whenever you need them.  Banks assure your financial safety up to $250,000.  

You make money by saving your money

One of the best and most obvious benefits for storing your extra funds in a savings account is that you can make money from simply having money in your account.  

You won’t make your first million in this way, but savings account interest rates are on the rise.  Give yourself a solid opportunity at financial stability, and maintain a growing savings account with a trusted bank.  

Set future financial goals 

Consider starting a savings account to allow yourself the opportunity to set and fulfill some big financial goals throughout your life.  When it’s time to buy a house, you’ll have the funds saved up for the down payment. Make it a point to invest in your future by building your savings account