For many, the ability to save money is out of reach. Whether this is because their job doesn’t pay enough or because they are not educated in the best savings account option, sometimes saving money is not a top priority. The thing is, having savings stashed away in a high interest account is smart! Not having an emergency fund to fall back on in times of need is a dangerous game to play.
If your kitchen appliances were to break down, how would you manage buying a new one without a stash of savings. If it’s possible that you can afford to replace broken appliances without much thought, then you’re in a very financially lucky position. If you had an accident in your car and it was a write-off, how would you manage in replacing your car? You may well need to go online to this attorney locator to get the information of someone who could fight for you when it comes to an insurance claim so that you don’t have to worry. However, if you have savings put away, you then have a way to get what you need in an emergency as you need it. Listed below are the best reasons you should set up a savings account for your future:
- Unexpected Expenses. A savings account is a gift if you have the finances to spare each month. It can cover all manner of expenses and unforeseen occasions. You could have to travel at the last minute to a sick relative – your savings are there to help. You could need to upgrade a broken-down car – your savings are there to help. Life happens and you cannot predict when things could go wrong, however, you could ensure that you have savings for when life does doe the unexpected.
- Security. If you are a homeowner, you will likely have insurance to cover you in the event of a fire or flood in the home. If you are renting, you could easily find yourself in a position of eviction or your landlord needing his home back – and where would that leave you? Savings that have built up over time give you the security to be able to move at the drop of a hat, and this means you are never going to be in a position where you have to panic about where you live, or how you will replace your things in a disaster.
- Debt Freedom. For some people, savings can be the reason they never get into debt. If you lose your job, you can find the payments you usually have to keep up with fall behind. With savings behind you, this is less likely to happen! You would be able to keep up your responsibilities without spiralling into a situation where you have run out of money and have no way to pay your debts or mortgage.
Savings can be a – well, saving grace – for some. There’s no reason other than not making enough money that you shouldn’t have a well-stocked account for all eventualities.