I think everyone should have a savings account, even
children. Most banks and credit unions
offer no fee bank accounts for children.
Regularly putting money into a savings is a fantastic habit to develop
and it is never too late to begin a habit if you are not one who already does
this. I keep one savings account. It is the account I've had for ages and my
checking account as well as a small line of credit is all tied to that one
account which makes it easy to track and manage. Every payday, before anything else gets paid,
I contribute a planned amount to that my savings account. I keep myself on a pretty tight budget and once
the bills are paid if there is anything leftover I will often add that to my
savings as well.
I save my change in a jar and every once in a while, about
once a year, I will count it up and take it to the bank to deposit into my
savings account. I am always surprised
each time with how much change I actually save up in that jar. Every little bit really does add up.
I map out savings goals each year - emergency funds, travel funds, project funds, planned
expenses (my annual car insurance bill), etc.
In order to keep track of those funds I keep a running tally on a
spreadsheet so I know how much money is in each "fund". If I ever use the money in that fund I begin
working to replace it as in the case of my emergency funds or for a planned
upcoming expenditure. Even once I hit
all of my financial goals I keep saving or I create new goals.
Adding money to the account and watching that balance grow
is empowering. For me it just makes we
want to keep doing it and growing that balance.
Hitting those milestones and saving up for something you want like a family vacation or new furniture is
really exciting. Not having to put
things on credit when you need things is even better.
I have often heard people say they "can't afford"
to save money. My thought is you can't
afford not to. No matter what
circumstance we find ourselves in we need to figure out a way to set aside
money into savings. I can't stress
enough the importance of having and regularly contributing to a savings
account. Especially during hard economic
times. We can't afford not to.
You are absolutely right! Savings is so important, even if it's only $10 a week.
ReplyDeleteSo right. Every little bit you can save adds up in a big way.
DeleteDo you only have the 1 savings account or separated ones?
ReplyDeleteJust the one account for savings. I have more than one retirement account, however. I keep track of my funds on a spreadsheet.
DeleteSo that one account has sub categories built in that you keep track of?
DeleteYes ma'am.
Delete