Whether you have begun working or not, opening a savings account is one of the most important steps you can take toward becoming financially independent and achieving your dreams. Here are five good reasons why you should start a savings account today.
1. To Start Building Wealth
The road to financial freedom begins with a single dollar. Every dollar you can save is like adding a brick to the house you are building. And until you can accumulate sufficient amounts to invest in stocks and real estate, what could be a better place to park your hard-earned money than in a savings account? As the money sits in your account, it will earn interest and keep on growing for as long as you leave it there.
2. For Easy Accessibility
If you need easy access to your money, a savings account can give you just that. Keeping it at home is not a good idea because it may get stolen. On the other hand if you put all your money in investments, you won’t have any when you need it. Money saved in a savings account is easily accessible. You can withdraw it anytime you need it. Just make sure you understand your savings account’s terms — some accounts have a maximum number of times you can withdraw money from your savings account every month without a fee.
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3. To Help WithÂ Unexpected Expenses
Life is full of unexpected twists and turns. And when the unexpected happens, such as accidents, sickness or a furnace dying, you need money to pay for the unplanned bills. Having a savings account makes the money easily available to you. Thus, your savings account also serves as an emergency fund. To make sure that there will be sufficient funds to cover unexpected expenses, you should set aside three to six months of your income for emergencies. Having a substantial emergency fund can also help you stay out of debt, or at least reduce the amount you would need to put on a credit card in an emergency. Using too much of your available credit can have a negative impact on your credit scores and, if you have so much credit card debt you canât afford to make the payments, you will definitely hurt your credit (you can see what impact your credit use and payment histories currently have on your creditÂ by checking your scores for free on Credit.com).
4. To Accumulate Capital for Investment
Investing in assets like stocks, exchange-trade funds and real estate is a great way to make sure that your money will grow sufficiently to beat inflation. But to make any meaningful investment, you need quite a large amount of capital. By putting money regularly into your savings account, you can build some significant savings in no time, which will allow your savings account to serve as a launching pad for your investments.
5. To Save Money for the Things You Have Always Wanted
Have you always dreamed of buying an expensive car or vacationing in an exotic destination? Opening a savings account is the first step towards achieving that dream. But to make your dream come true, itâs important to set aside some money every month. Once you have deposited the money into your savings account, itâs best not to touch it until you have saved up enough to meet your goal.
Once you have opened a savings account, one of the best ways to save some money is to automate your savings so you donât have to remember to set aside money every time you get paid. There are many innovative and easy-to-use automated saving tools that can help you save automatically, and can make saving money almost as easy as spending it.
More Money-Saving Reads:
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- Whatâs a Bad Credit Score?
- How Credit Impacts Your Day-to-Day Life
The post 5 Reasons to Start a Savings Account Today appeared first on Credit.com.
We’re all about scoring a good deal here at Apartminty. Â While we love perusing the top-of-the-line luxury apartments in DC, we also understand, sometimes an affordable rent is the better option. Either way, instead of you searching for Washington, DC apartments onÂ Craigslist and property management company listing sites, we are delivering our choice of the best apartments to rent in DC right now. Â Here’s our pick for the best Washington, DC apartment inÂ Columbia HeightsÂ for rent today. Want more information on moving to DC? Check out Apartmintyâs Â Ultimate Guide toÂ Moving to Washington, DC.
Â CRESCENT PARK
Crescent Park ApartmentsÂ
2 Elmira Street SE
Washington, DC 20032
1Â Bedroom/1 Bath
Unit #:Â 3
710 Sq Ft
Why it’s a great deal:
If you are looking for a true rental deal,Â Crescent Park is a dream.Â Located right off of South Capitol Street, these spacious apartments come equipped with hardwood floors, updated kitchens, and free basic cable. With on-site maintenance and management teams, on-site laundry facilities, and the ability to pay your rent online!Â Looking for something a little different?Â Check out Apartminty’sÂ guideÂ How to Find an Apartment in DC.
Read Property Spotlight of the Day-Crescent Park on Apartminty.