(FinancialHealth.net) – Saving money is not as easy when you simply try to keep some extra cash on hand or even around the house. Rather than holding onto large bills, it’s best if you open a savings account where your money gets safely stored. A savings account is one of the best financial instruments you can have. Here’s why.
Some Accounts Gain Interest
Don’t just choose any account. Some options gain interest over time, bringing in even more money for you to save for later. Find a savings account that lets you accrue interest, even if it’s just a few extra cents per month.
Emergency Fund
One of the most essential reasons for having a savings is to have an emergency fund. When unexpected expenses come up you want to be sure you have money available to handle them. Keep an account open and never spend from it unless you need it for an emergency.
Security
Sure you could store cash around your house so you have it for emergencies, but what would happen if it got damaged and destroyed? What if it would get stolen? A savings account provides security so you always know you have your money safe and ready to use when you need it. Even if the bank got robbed, flooded, or even closed down, you would get your money back.
Financial Activity
If you want to get a loan, some lenders want more than just a credit report. They want to see how active you are with your finances in general. Regular activity with a savings account tells them you have a significant interest in maintaining your finances.
Saving money is a necessity of modern life. You always want to have something available if a situation arises. Use a savings account as one of your best financial instruments to keep your finances in check.
~To Your Financial Health!
Copyright 2020, FinancialHealth.net
