Investing in your future: savings accounts

Investing in your future: savings accounts

Whether
it’s for a specific purpose or to build an emergency fund, saving money can
alleviate stress and lead to a financially fit lifestyle. And with all the
uncertainty 2020 has brought us, it’s a good idea to have some savings to cover
unexpected expenses or a reduction in your income.

Start
with developing short and long-term saving goals to promote healthy spending
and saving habits. Whether it’s saving for a home, vehicle, education or
splurging on something fun, setting these goals can help you commit to saving.

Savings
accounts are also beneficial if you’re tempted to spend savings that you
normally keep in a checking account. Savings accounts usually have limits on
the number of withdrawals per month, which can be a good motivator not to touch
the money unless you really need it.

Next
figure out how much you want to save each month. If you have a specific dollar
amount in mind – a new TV for example – take the total amount divided by
twelve. This will give you the amount you need to save each month in order to
purchase the TV in a year. If that number isn’t doable right now, adjust the
number of months until it’s something more comfortable for your budget, but
attainable. You can also use the 50-30-20 rule, which recommends that you spend
50% of income on needs, 30% on wants, and 20% on savings or debts.

Savings
accounts make it possible to earn money just by having your money in the right
account. If you choose to deposit your money into a savings account, you are
essentially acting as a lender to the bank. In return, the bank will pay you
interest, or a percentage of your balance, to keep your money with them.
Depending on the amount you choose to deposit and varying interest rates
available, you can personalize your saving experience with a savings account
that offers the greatest yield and overall benefits. 

All
that’s left is for you to open the account! Procedures may vary by individual financial
institution, but as a guideline, use this checklist to help you prepare to open
a checking or savings account:

  1. Do
    your research.
  2. Visit
    your financial institution.
  3. Bring
    two forms of identification.
  4. Provide
    personal details.
  5. Bring
    money to make your first deposit.
    For joint accounts or minor accounts, provide personal information and
    identification for each person who will use the account.

Learn more about savings accounts and how to open one for yourself or your child with our online tutorial.

This information is presented for educational purposes only. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.

The post Investing in your future: savings accounts appeared first on Premier Perspectives.

Leave a Reply

Your email address will not be published. Required fields are marked *