Without a doubt you have a checking account. Especially in the digital age we live, it is nearly impossible to accomplish anything without it. Now with online banking, managing our money is quicker and often simpler than changing our Instagram profile picture. The catch with all this ease, however, is that it is now quicker and simpler to spend our hard earned money. That’s where a savings account comes in. Here are four reasons why, if you haven’t already, you should open a savings account.
Why You Need to Open a Savings Account:
- The “what-ifs”. We all have them. “What if I get injured at work?”, “what if I lose my job?”, “what if the car breaks down?” Whatever your “what-if” is, having even a little bit in savings can ease your mind.
- Planning for the future. Humans like to plan. We like to know what our first home will look like, when to start a family, and where our newborn will go to college (some plan more than others). We can never start saving too early for these big milestones in our lives. Not to mention vacations. We all need one from time to time. So why rack up debt while at your dream destination? Don’t spend the following months paying it off. Instead, save for a guilt-free vacation ahead of time.
- Never overdraft again. Depending on your bank, your checking and savings account will be connected. That means that if you accidently spend more in your checking account than you have, your savings account will automatically kick in and cover the difference.
- It’s easy money. Many banks offer “keep the change” options. This means that if you spend $4.60 at Starbucks on your debit card, your total is rounded up and $0.40 goes into your savings account. It doesn’t seem like much but over time that “change jar” gets pretty full. Also, depending on your bank, the interest you will collect on the account will add up as well. Who doesn’t like free money?
Are You Convinced?
Opening a savings account is quick, easy, and will give you a feeling of financial security regardless of what comes your way. You will be more conscious about your spending and that in turn will help you save even more. A savings account is not only a safety-net but it’s an investment. So invest in your future today!