If you are stressed out enough as it is trying to make ends meet, the last thing on your mind would probably be saving some money and putting it away in the bank. You might think to yourself that you can barely support yourself or pay the bills, why should you worry about savings. Well, the truth is, if you fail to plan, youre planning to fail. This applies to all aspects of your life, and its definitely true when it comes to savings.
Here are the top five reasons why you need to open a savings account now. Not tomorrow, today.
1. Saving For A Rainy Day
Lets face it. Emergencies happen all the time. Thats why they are emergencies. They are unexpected. And many times, they are unavoidable. If you can see them from a mile away or you can predict them, they wouldn’t be called emergencies. Emergencies, by their nature, are surprises. So dont get surprised by a turn of events; you might get in an accident, somebody might get sick, you might lose your job. All sorts of horrible things can happen, and the only things that can save your piece of mind are insurance and savings. Not too many people get insured and not too many people look at savings for emergencies, so its very important that you choose at this point in time to protect yourself from emergencies by either saving up for a rainy day or getting the adequate insurance.
2. Saving Up For Investments
You might think to yourself, Im barely able to keep my head above water. Why should I worry about saving my money for investments? Well, the truth is, if you want your money to grow, you need to invest it. Just putting it in the bank is not a good idea. Inflation will eat up all your savings. You worked hard for your money. You want to see it grow and beat inflation. Of course, for you to invest, you have to have money saved up. This is why its a great idea to save a little cash every two weeks, after every payday, to eventually invest in the long run.
3. Keeping Cash Around Is Not A Good Idea
Assuming that you are able to put money aside but youre distrustful of banks, you might be opening up yourself to serious financial loss. Keeping cash around the house is not a good idea. Cash disappears all the time; you might be a victim of burglaries, or if people find out that you keep a decent amount of cash around the house, they will get an incentive to break into your house. Dont give them a reason to victimize you.Put your savings and spare cash where it belongs: the bank in your savings or checking account.
4. Saving Up To Reward Yourself
You worked hard for your money. You made a lot of sacrifices. You deserve to reward yourself every once in a while. Saving up money in the bank so you can withdraw it to buy yourself something nice is a perfectly legitimate reason for opening a savings account. Reward yourself. All work and no play will not just make you a dull boy, but it can actually make your life miserable.
5. Saving Up For Big Purchases
If you want to buy a car, the worst thing you can do is keep the money around and spend it in small batches. Eventually, by the time you actually need a car, you dont have enough money for a down payment. Thats basic human nature: we spend whats in front of us, and we eat the food that is in front of us. Its much better to save the money in the bank so you dont see it, so you cant spend it. It works the same way with food. Its better to keep the food in the fridge rather than in front of you so you dont eat it and get fat.