When it comes to money, we all have different reactions towards it depending on the knowledge and environment we have been exposed to over the years. From the miserly end of the spectrum to the other end where the spendthrifts are, we all fit in somewhere. If you are in business, a current account is probably what you regularly use for financial transactions. But you need to save money as well. Doing that in a current account is hard. As you read on, you will be exposed to knowledge that will hopefully help you develop better saving habits.
Many people shy away from opening savings accounts because of the relatively low interest rates that they come with.This percentage pretty much varies across the board, with some banks offering considerably high rates. Whatever the case may be, it is not only the interest p.a. that you should focus on. There are many other reasons why opening a savings account is a good idea.
Make Your Money Work for You
Have you ever heard the saying, “Money saved is money earned?? When you deposit money into a savings account, it automatically starts to earn interest which then compounds over time. This means that the more you save, the more interest you earn. This is one of the easiest ways to make money.
Where do you turn when your income runs out because of emergencies? When some unplanned-for expenses that you have to take care of suddenly arise and totally upset your budget, and you need that extra rupee to help you stay on top? Turn to your savings account.
It is a rule of thumb that your savings should be the equivalent of three to six months’ worth of your expenses. If you do not have a savings account, you might be forced to borrow in order to offset your expenses. This will eventually cost you in the long run. It is one thing to borrow in order to invest. It is a totally different scenario when you have to borrow to meet your needs. No one likes to be in debt. Having a savings account can help you stay debt-free, even in those times of emergency.
Prepare for Your Future
Maybe you are planning to get married and to have children. Or maybe you are thinking of taking a long vacation abroad, or you have a certain dream project that you desire to undertake. Or maybe, just maybe, you are thinking about buying a piece of land, a house or a car someday – in cash! The common denominator here is that all these things will require money and the earlier you start stashing some away in preparation, the better it will be for you when the time comes to execute your desire. This is where that savings account will come in hand.
Get Some Leverage
Just like we never know when an emergency may arise, we also never know when a good opportunity may come our way. When opportunity comes knocking and you want to open the door, lack of money doesn’t need to be a hindrance. All you will need to do is reach into your savings account and make that investment. Depending on the type of saving account you open, you can have immediate access to your money. Having a healthy savings account can also speak for you in the event that you need to get some extra credit for that investment.
Are you serious about securing your financial future? Then go ahead and make one of the best financial decisions ever. Open a savings account today and begin to reap the benefits.