Finance

All the Reasons You Need to Have a Savings Account Now

Woman withdrawing from the bank
Posted: Mar 22, 2018 at 1:00 am   /   by   /   comments (0)

Having a savings account has long been proven to be valuable, especially as protection against emergencies. Despite all the information about the benefits of such assets, many adults in the United States — as high as 34% — don’t have anything put away. Furthermore, about a third of them have only a few hundred dollars saved. It’s a financially-dangerous situation you wouldn’t want to put yourself in.

To help you understand better, Palmetto Citizens Federal Credit Union shares some of the reasons behind the importance of having a savings account:

Protection against financial setbacks

Keep in mind that accidents can happen to anyone at any given time and such incidents almost always lead to considerable expenses. This is why industry experts recommend having an emergency fund of at least six months’ worth of your income. This way, if you do experience money troubles, you can get by while you get back on your feet.

Staying out of more debts than you can handle

Although you’ll now find numerous unconventional lending institutions, such as those that offer easy-to-qualify for loans, relying too much on them can put you in a more serious financial risk. These financial services are more of a quick-fix than a solution, seeing that they usually come with exorbitant fees.

Living within your means and having a back-up

Many people underestimate the power of a savings account. Many don’t even consider it as a priority. Unfortunately, this is a lesson learned the hard way for many, and is something you should try your best to avoid committing yourself.

You’ve heard it countless times before, but it’s worth repeating: Live within your means and stow what remains in other platforms, including a savings account. Doing so not only allows you to live more comfortably than others, but also with more peace of mind.