Three Reasons You’ve Never Heard Why You Should Open A Savings Account Today
People open a savings account for a multitude of reasons. Typically, we hear that we should put away money for retirement or save up money for a down payment on a home. In this article, we are going to look at a few reasons why you should start saving that you usually don’t hear about. I hope these reasons, in addition to the more traditional reasons to save money, will encourage you to open a savings account today.
Reason #1 – Use Your Savings Accounts As Budgeting “Buckets”
With online banks such as ING Direct, you can create as many savings accounts as you wish without any extra fees. Additionally, opening another account only takes a few seconds and clicks of the mouse. In addition to a general savings account you can create additional accounts (or what I like to call budgeting “buckets”) to help you stash money away for unexpected, or expected, expenses. For example, I have five savings accounts that I contribute money to each month:
1. A general savings account
2. A bucket for house maintenance expenses
3. A bucket for auto maintenance expesnses
4. A bucket for annual life insurance payments
5. A bucket for large purchases
By setting up an auto-transfer from my checking account into each of the five above savings accounts, I’m able to both put away money for long term savings as well as put away money for expenses that seem to always hit at the worst time. I encourage you to open a savings account today and implement a similar strategy. It will help you be better prepared for the next unexpected expense in your life.
Reason #2 – Use Your Savings As Capital For Future Investments
The money you stash away becomes ammunition to strike at a potential investment down the road. With decreasing values in real estate and other asset classes, those with cash will be able to take advantage of distressed assets that could offer a nice return for years to come. Large returns in the future requires you to be intentional with your money today, so open a savings account, start putting money away each month and keep your eye out for the next bargain investment!
Reason #3 – Spending May Be Good For The National Economy, But It’s Bad For You
Our government is desperately trying to get individuals to spend more money. While our economy requires consumer spending to grow, your own financial health requires you to save. I recommend you ignore the Cash For Clunkers program and any other government incentive for you to spend money and go into debt. Instead of spending money, drive your clunker for a few more years, stay in your current home, get out of debt and open a savings account!
The Best Option For Saving
I recommend and use ING Direct because it is easy, secure and free to use. Easily transfer money between your checking account and your ING savings account(s). There are no minimums and no fees, and they have the best interest rates I’ve seen. Give ING a try today and you will never go back. Click here to open a savings account today.