The key to financial stability is getting a headstart on saving money. There are many ways you can begin saving for your future but if you want to do so as easily as possible, then you might want to consider opening up a savings account first. In a world where it’s very easy to buy the things you see online, it’s better to have your money stored in a place where you can’t spend it in one go.
Surprisingly, 53% of US citizens don’t have emergency savings that can save them during a bad day. It’s likely that most of those that don’t have emergency funds prepared also have no savings account to begin saving with.
If you don’t have a savings account yet, you should consider opening one soon. Here are a few important reasons why you need to have a savings account prepared ASAP.
Benefit from Interest Rates
Though minimal, there are interest rates in savings accounts. The usual rate for a savings account is around 1% per annum. Seeing the number, it doesn’t seem like your money will grow well inside a savings account but you’ll at least be seeing some form of growth instead of nothing.
If you keep your money inside your wallet, it won’t grow in any way. In fact, you’ll often spend it too. It’s better that you give your money a means to grow through a savings account rather than let it be stagnant inside your wallet. That 1% might not seem much now but it will continue to pile up the more money you put on your account.
Helps Control Your Spending
One of the obvious reasons why you might not have a savings account yet is that you keep on spending money. We’re at an age where online shopping is more convenient than going outside and risking yourself of Covid-19. On top of that, brands love conducting enticing deals online as well.
It’s easy to say “this time, I’m not going to buy anything anymore” but it’s actually hard to pull it off. Financial wizards from https://moneymash.com/best-savings-accounts/ say that the best way to control your spending is to open a savings account. Direct your money here so that you don’t get the chance to spend the money at all. This may seem like an odd step to take to begin saving money but trust us, it’s actually very effective.
If you have cash on hand, you often force yourself to spend more money on the stuff you see online. Whether it’s delivering food or just your wants, having a savings account is an effective way to put a hold on your spending habits.
Helps You Save for Emergencies
The name itself suggests the main purpose of a savings account. It’s there to help you save money. It can be for an emergency in the future, a new gadget, or some other expense you expect to make within the coming months or weeks. A savings account is actually effective as compared to just putting your money in a piggy bank.
What’s great about a savings account is that it’s money that you can access all the time. Wherever you are, you can immediately use the funds you’ve saved so long as you have your bank card with you. People often disregard this very useful benefit of a savings account but it’s definitely great for emergencies.
Manage Your Finances Better
If you want to have a stable future ahead of you, it’s high time that you begin learning how to manage your finances better. A good start to better financial management is by creating a savings account. What this does is helps you allocate your money better.
It’s common practice to separate your savings, bill payment funds, and your emergency funds from one another. If you keep all of them in one place, it’s very likely that you are going to mix them up, thus resulting in you spending more than what you initially intended to.
Talk to any financial advisor and they’ll tell you just how important it is to open a savings account for yourself. There’s no downside to opening one as well. Even if there are fees, they are too minimal to worry about anyway.
A savings account is great whether you are planning for a rainy day or planning for your future. It’s not at all hard to open a savings account and you virtually have no reason why you shouldn’t have one in the first place. On the contrary, it can do wonders for your financial stability.