subject: Superior Equity Group - The Dangers of Not Saving [print this page] It's very easy to say that having and maintaining a savings account is a smart idea. But what happens if you don't have a savings account? What sort of danger are you putting yourself in?
If you don't have a savings account, you could find yourself unprepared for the emergencies that invariably come up in day-to-day life. What if your car breaks down? What if you fall ill and miss work? What if you need to travel on a moment's notice for a family or personal emergency? All of these needs can be met with an adequately-supplied savings account. However, if you don't set aside money on a regular basis, you could find yourself woefully unprepared, and out of luck. Don't let that happen to you.
One argument that seems to prevent people from opening a savings account is that it's too difficult to do so, and that it's not worth the effort, but both of these arguments fall flat when countered with logic.
Opening a savings account is easy. Putting money in it on a regular basis and keeping it there requires discipline, but it too can easily be done. Look at it this way: will it be better to set aside money every payday for savings, and be prepared, or will it be more to your advantage to spend your money, leaving no funds to be set aside? Of course, the former is the better choice, because it provides long-term security instead of short-term satisfaction.
The lack of savings could affect you in less critical situations, too. Suppose you see a new TV set you like, or maybe a new cell phone. If you had adequate savings, you could buy it on the spot. Without a savings account, however, you're left to decide whether to purchase the luxury item, or go without essential personal items such as groceries or paying bills. Surely you can see the importance of having a savings account, and how it can serve you on a number of levels.
The best part of having a savings account is that unlike investment accounts, there is no penalty for withdrawing money whenever you want it. The only catch to that is that it requires discipline to maintain a savings account, because you want to ensure that you don't pull money out just for the fun of it, only to find that you really needed it later.
If you don't already have a savings account, explore the options at your local banks. Choose a savings account that waives the service fee after meeting a certain balance requirement (usually $100), and that yields interest. This way, you can earn money by saving. The sooner you open a savings account, and the sooner you set up a personal plan for funding it on a regular basis, the sooner you'll be prepared for all sorts of sudden situations, whether it be an emergency, or an impulse purchase such as a phone or concert tickets.
