Why savings accounts are a must during inflation

How savings account are helping with household expenses

10:25 04 May 2013

Creating that saving and security net that all the financial advisors have been harp for all of us to do have become that allusive ghost that most Brits have been contending with.

 

On the premise that a certain percentage of income should and can be set aside to both security and savings and the reality of such actions, especial with recent economic conditions leaving no household unscathed, at the far end of two scales.

 

While trying to adjust for inflation, not all wages have caught up or maintain equal footing with cost of living expenses. Bare bones expenses related to housing, food, and transportation can no longer be divided into 3rds or even in some cases, 8th when additional other necessities such as medical and dental expenses come into play.

 

And putting aside a few pence at a time into a savings and security accounts will do little if hit with even a minor financial bump. But trying to do something no matter how small is better than doing absolutely nothing. After all, it can only stay dark for so long.

 

• Automatic withdrawals from the pay check into a savings and security account can get the ball rolling, especially since you aren’t seeing it first to spend it.

 

• Make it a little more difficult to get at. At another bank either across town or even out of town where you have to make a real effort to get to it. Although accounts that penalize you for withdrawals or closures are a pain, making you think twice about it may encourage you to not go into it. 

 

• If expecting money back from taxes or an annual bonus, sock it away before it is seen. This will add to the savings even if not able to the rest of the year.

 

It is a good idea to have something set into some kind of savings and security net account even when the it is seem very impossible to put even a couple of pence aside.