Just when you think you’ve got everything figured out, life has a way of bringing you back to reality. That’s certainly true when it comes to having a savings account. Studies show more than 60% of U.S. adults have less than $1,000 stashed away and almost 50% have no savings at all. If you don’t have a savings account, here are some good reasons to start saving:
Life happens and has plenty of ups and downs, but the downs tend to be expensive. When that happens, it’s good to have savings to fall back on. No matter your lifestyle, living paycheck to paycheck can be rough, and a savings account can provide a sense of security, especially in a rough time. No one knows what will happen tomorrow, especially when it relates to their health. Studies show that 80% of older adults battle at least one chronic condition, such as arthritis, and saving now can bring relief in the future.
Savings accounts are wonderful to have, but they take discipline to manage. With 4 out of 5 adults facing a chronic illness, this can be difficult with medical bills. And 50% will face at least two. But the more you can manage your finances, the more control you’ll have over your situation.
If you’re planning on sending your kids to college someday, you’ll need a lot of money to do it. College expenses are only going up and parents would do well to start a college savings plan for their child or children. A financial advisor can help you determine what the best way to save is and every bit you can save will help in the long run.
Whether you owe $10 or $10,000, no one likes being in debt. Having a savings account is the best way to combat debt. Without a savings account, unexpected expenses like home repairs or medical emergencies can force you to go into debt. Having a savings account with even a little bit of money in it can help offset unexpected expenses and help you keep from accumulating debt on credit cards or taking out loans.
Out of Sight, Out of Mind
One of the best reasons for maintaining a savings account is that you avoid spending all your money upfront. It’s easier to do if money is set aside for your savings before you have a chance to spend it. Having separate checking and savings accounts makes it easier to transfer money to a savings account, where you’ll have less temptation to spend it. Once it’s out of sight, out of mind, you can keep it there for emergencies.
Saving money and savings accounts should have a purpose and fit into your lifestyle. Savings accounts can be used for emergency runs, but they can also help you achieve short-term goals like saving for home repairs or a new car or even medical expenses like psoriasis treatments. It’s estimated that 10% to 15% of those with psoriasis get it before the age of 10, which means a lifetime of treatments and doctor visits. No matter what you need it for, or the lifestyle you lead, a savings account can help you achieve the goals you have for yourself and your family. Setting and reaching those goals not only gives you satisfaction but can also help you balance other areas of life.
No matter what twists and turns life throws your way, it’s always better to be prepared. With a savings account, you can be. A savings account can help you take better control of your finances, help you avoid debt, help you achieve goals, and can help in emergencies. So if you don’t have one, start a savings account today!