A savings account is a great asset when it comes to managing your money.
It offers you a resting place for your set aside income. Some accounts even allow for interest accrual, making these reserves even more valuable over time. That said, it’s good to have some intentional savings account goals to maximize the resource’s potential.
The first step to getting the best use out of your account is to create consistent saving habits. Putting a modest amount of your income away every month is a great starting point. Of course, you’ll want to ensure any current debts and expenses are accounted for prior to taking this measure. As you continue to pad your account, it can eventually come in handy should you need a spot on that month’s bills.
Your savings account doesn’t only have to be a backup for bills. You can use it as a resource for any goal that may require you to save a considerable amount. The car of your dreams? Check. Your dream home? Check. Planning to go back into academia? This is your starting place. Whatever your goal is, your savings account can help.
And the motivations don’t stop here. If you’re the nomadic sort, or at the very least don’t like staying in one spot, you can plan your next vacation with your account. And let’s not forget the last minute emergencies that life can throw our way. Auto accidents, home renovations, so on and so forth.
Savings accounts are good for both short term and long term pursuits. One goal that may seem far off is retirement. But it’s common knowledge that the sooner you begin planning for it, the better. Try using any number of savings methods to start now.
Also, it’s rare that anyone goes through life without accruing debt. Add this to your savings account goals list. You can use the reserves to help in paying these down, and keeping you afloat during times of need. It’s recommended that you allocate more than the minimum required payments; your savings account can assist in reaching that amount.
So that brings us to the million dollar question: what’s a good amount to put away each month? While there isn’t a specific, one size fits all figure, there are methods to scale the amount to your circumstances.
A good rule of thumb is to put half of your income towards the non-negotiables. That’s any expense that’s absolutely necessary to handle. These include bills, monthly payment, and so on. 20% should go straight to your savings. And since life’s about balance, put the rest towards activities that you enjoy.
FitnessBank is here to help you reach your savings account goals.
We offer both savings accounts, personal accounts, and a wide range of incentives for banking with us. Our number one priority is your physical and financial wellbeing. Contact us today to learn more.