You may think you’re doing pretty well financially. You keep up with your everyday bills without too much trouble. You have a credit card or two in case of emergency. So why save?
If you’re not saving, you could find yourself in big financial trouble if you have an unexpected expense. What if your car breaks down, or your refrigerator? What if you, or your spouse, lose your job or get seriously ill? Do you have enough in the bank to cover something like that? A savings account can save the day when something unexpected happens.
But saving money isn’t just for a rainy day. It’s for all the sunny days in between, too. Are you hoping to buy your own home someday? That someday will get here a lot quicker if you have enough saved up for a down payment. A healthy down payment can help you to get lower mortgage payments and a better interest rate. It can even help you afford a bigger house. And if you’re thinking of buying a car, savings can help you get into an upgraded set of wheels.
What are your future plans? Retirement can seem far away, but it will get here sooner than you think. An individual retirement account can help you prepare for that day. How would you like to be able to do what you love without worrying about how the bills will get paid? That’s real financial independence. You could achieve it in the future with sensible savings and smart financial planning.
So let’s talk about how to get started. If you don’t already have a budget drawn up, that’s an important first step. Check that budget to see where your money leaks are. Are your habits costing you money? And how can you change your behavior to plug those leaks and get the money you’ll save into your savings account?
Do you eat out most nights? Stay in and save money while you enjoy healthier homemade food. Do you have a streaming or cable subscription you’re not using? Cancel it and put that money into your savings account. Are you spending too much on “retail therapy” and shopping on your phone when you’re bored or lonely? Take shopping apps off your phone and use it to call a friend instead. Making a few simple changes can help your savings account grow.
With a healthy savings account, you won’t have to worry about unexpected expenses. With a down payment saved up, you can get into a new home faster. And with a retirement account, you can plan for your future financial independence.
If you have any questions about how to get started with savings accounts, we can help. And you can download our free eBook , “The No-Nonsense Guide to Managing Your Money,” for more practical hints on everyday money management.
This article should not be considered legal, tax, or financial advice. You may wish to consult a tax or financial advisor about your individual financial situation.