Do you have a savings account? Almost everyone from the middle to the highest classes of society have a bank account. However, not all of those people possess a savings account. Having a solid savings account means setting aside a certain percentage of your earnings daily, weekly, or monthly. It doesn’t matter how much the amount is, as long as you contribute to the savings account consistently. After a while, before you even realize it’s happening, you’ve already built a fortune because of your consistent deposits. International news praised a simple market stall owner who managed to save up more than three hundred thousand dollars over the years just because she faithfully set aside a percentage of her daily earnings to her savings account. It’s a whopping sum that doesn’t seem easy to set aside- but as long as you’re consistent in your deposits, your savings account can be your source of financial security and enable you to do big-time investments in the future.
The savings account isn’t merely a piggy bank that you fill up with money until it’s filled up and spend the contents freely- it’s a piggy bank that should never ever be emptied except during emergency situations. Having a secure savings account also grants you emergency funds to be used during sickness, financial disasters, and unexpected but necessary expenses. It can also be used to stop repossession. When you’ve incurred a lot of unplanned debts, or made a huge investment on a whim, you can use your savings account to help you survive until your next payday. People who needed urgent medical care were able to withdraw cash from their savings account and used it to buy expensive medicine and be admitted to the best, priciest hospitals. As a result, they were able to get well quickly. On the other hand, people who were issued eviction notices because of their failure to pay mortgage dues also managed to stop repossessions by withdrawing from their savings account. People who didn’t have a savings account had to resort to other extreme means, like enrolling for a debt relief program or selling house, but those with savings account were able to stop their repossession all too easily. With a swipe of an ATM card or a simple transaction with a bank teller, their mortgage problems were gone in a blink. Having a savings account ensures that you don’t fall prey to any financial disaster. A well-financed savings account can cure sickness, account for impulsive shopping sprees, and stop repossession.
How do you build up your savings account? Start by computing how much you earn. If you’re given daily allowance, set aside at least five percent of your funds and put this in a secure container. You’re not allowed to withdraw from this container except during emergencies. If you only receive income during payday, either monthly or bimonthly, set aside five percent of your earnings and place these on a separate bank account. After a few months, you’ll realize that you have enough resources to safeguard your future.