A savings account is type of bank account that you open if you plan place your money in the care of a bank wherein it will accumulate interest over time (not really a significant amount) and provide you a place where you can safely deposit your money. Although a savings account is very helpful in the future, sadly not all people are able to have one and this is more on managing the finances. Some people are good at it while some people are bad at it.
What most people don’t understand is that savings are for the future. You save now while you can and enjoy it later in the later part of your life. Although its highly advised that you need to have other investments as well since savings have very little interest to grow your money, but the fact that you got a place to save up your hard earned money for the future is already something. So why should you apply for basic savings account?
To save for the rainy days: Saving for the rainy days is one of the primary reasons why you should save. In life, you will never realize how it will turn out and when the rainy day comes and it happens to hit your finances, its comforting to know that you won’t end up in debt because you have savings saved up where you can get something out of to buffer for those financial difficulties.
For future investments: You will never know when a good investment comes along and you know all about investments right? It’s not cheap and will not ever be cheap and when that opportunity will come knocking at your door (not every day it will happen), you will be glad that you have your savings where you can get a capital for your investment.
For retirement: One of the big reasons why people save is for retirement. The reality of life is that you won’t be a worker forever, you won’t be making money all your life. There will come a time where you hang up the hat and rest. If you don’t have savings then you will be a burden to your family. No one wants that to happen, so while you can, save up because its best to enjoy life when you’re retired and not suffer more at old age.
Peace of mind: One of the best things that you get out of savings that are away from the things that are mentioned below is emotional stability or peace of mind. Knowing that you have enough money to last you you a lifetime and able to enjoy life while you can is priceless. You can’t do that if you’re drowned in debt. If you want to sleep better at night and enjoy life more, save up now.
Most people will ask “when is the best time to save?” the answer is NOW. The earlier you save the better and that should always be the case. No matter what happens always save and control your urge to buy things that will just get thrown or get damaged over time. You sacrifice now and you will reap what you sow later in life in a form of financial stability, financial freedom and peace of mind.