5 reasons to deposit into that savings account

A good rule of thumb is to spend a little and save a lot.

11:30 18 May 2013

There has been some recent concern over the low rate earned on savings accounts since it doesn’t even cover the amount of inflation, but people are avoiding lots of spending and still depositing money in their savings accounts.

 

The economy needs both saving and spending in order to thrive properly so here are a few reasons to keep on contributing to that savings account even if you don’t make more than what you put in. 

 

• Emergency funds—with a tight economy you could regret spending that money since the beneficial results to the economy won’t immediately be reflected in better all-around pricing. 

 

• Family planning—if you have children, or are planning to have children it takes a long time to save up amounts that will assist them when they go to university or when they strike out on their own. Maintaining contributions to a savings account is imperative for your children’s success.

 

• Retirement—it’s a grim reality that funding for the aging community may not be what it was by the time it is your turn to retire and if you haven’t planned and saved for your retirement there may not be anyone else to help you out later. 

 

• Home repairs—you can still take money out of your savings account and splurge here and there, but it’s important to remember that unexpected things can happen and you could be faced with the sudden need for a new boiler, or any other odd assortment of things. 

 

• Business start-up—perhaps the primary reason you keep up that savings account is because you have a vision for a business you want to start and you need working capital. 

 

There are many more reasons to keep depositing into that savings account, but it also might not hurt a little bit to also ensure you have a decent amount of spending money, if possible, to invest back into the economy and to give yourself a treat now and then.