Why you need to have a savings account

Updated: February 25, 2012 at 12:42 am PST

Ah, saving money. It’s something we love to do, right? Wrong! Most people would rather spend, spend, and spend their money. You work hard for your money, and you want to have something to show for your work, so you buy stuff. Everyone does it. However, it’s important to save some of your money too. The best way to do this is with a savings account. Why do you need to save money? You need to save money to prepare for unexpected events that could cost a lot of money. There are many examples of such unexpected events. Say you live close to the ocean and nature decides to throw a giant tsunami at you. Sure, we like to think, “Oh that would never happen to ME!” But stuff like this occurs every day. The case of the tsunami brings up another point. It’s important to have savings in an account, and not as cash stored in your home. If severe weather happens, all that cash jammed in your dresser drawer could be gone forever.

The hardest part of saving money is actually starting to save it. Once you get in the routine of putting a little extra cash in a savings account, it becomes easier to do, and you’ll probably forget you’re even doing it. Better yet, if you can set up an automatic transfer of 10% of each paycheck, you won’t even notice the money is gone.

Setting up a savings account will give you peace of mind. You won’t have to go around worrying about an incident that could leave you broke. Saving money doesn’t have to be just for an emergency either. You can set aside money for a vacation or a house too. If you don’t have a savings account, set one up today. It’s one of the best financial decisions you can make.

Savings account