Savings accounts are incredibly important, especially if you think of them as a means to get further in your life and even as an emergency fund. At some point in most people’s lives, something happens that we can not control. When you’re living paycheck to paycheck and something like this happens, especially if it happens to be something that entails incredible amounts of money, you’ll need to have something to back that up. It’s a good idea to make sure that you have an emergency fund for such a case, but you should also have a savings account. Some people put these two together, but in most cases, it’s a good idea to keep them as two different savings accounts so that one can be for savings for your future and the other can be for emergencies.
If you look at money, rather than as a means of small instantaneous pleasures but more as a way to get you through your life and to make things easier for those that you love, you’re more likely to get your life off on the right track. Though this may be easy to think and to say, it’s much more difficult to put into practice. It takes a lot of motivation, skill, and determination to make sure that you save money for your future. This is because the modern world constantly inundates people with advertisements and media that project the idea that we must have more. However, this isn’t the case, and more than likely, you’ll find that less things will actually make you happier.
After you know that you want to save money and that you’re willing to part with frivolous expenses, it’s time to open an account. You can do what you believe is best for you, but many times, you can find banks that will give you extra money for opening a savings with a certain deposit in it. This is a great way to start off your fund, because you’ll be sure to have more money in the long run. You should make sure that when you’re setting up your account that you can make automatic withdrawals from your checking account when you get paid to be put into your savings account. The withdrawals should be around 20% of your paycheck. This sounds like a lot, but unless you’re making less that minimum wage, it shouldn’t be much of an issue. IT may seem like it at first, especially if you’re used to spending money wherever and whenever you want, but it’s important that you understand the role of money in your life and what makes it important.
You should also make sure that when you’re doing this, and possibly even going the minimalist route, that you buy high quality items to begin with. Investing up front on items that will last you for years is a much better idea than buying cheap items you’ll have to constantly replace. Shopping at places like Kohls for high quality and well made clothing, for example, is an excellent way to save money in the long run.