There are many people that have lots of savings behind them but also people that feel that saving up money is a waste of time. There are many advantages to having some savings available to you and so it can be a good idea to think about some of these and whether it will convince you to get some savings of your own or help to motivate you to keep on saving up money.
A savings account will pay you interest on your money. This can vary depending on who you save with and what type of account you have, however, it is better to have your money in an account earning interest, rather than at home in a jar or piggy bank. Although savings interest rates tend not to be really high, it can still be better to get that money than to not have it at all. It is something which can give us a little bonus or boost. There are big differences too in the interest being paid into different accounts. This means that you could find that you will be able to get more interest with some banks than others. Also, it will depend on whether you want instant access or whether you are happy to give notice for withdrawals or keep you money in an account for a fixed period of time. It is good to investigate what the options are as this will enable you to judge where will be the best place for you to put your money.
Provides Emergency Fund
Having money in a savings account means that you have something to use if you have an emergency and need money fast. Obviously, if it is tied up in a notice account or a fixed term account then it will not be so easy to get to it but you could put some in these accounts and keep some that is easier to get to should you need it. It can give great peace of mind to know that you will be able to use this money if you really need it. It can be a lot easier than having to wait and organise a loan or short term credit and also much cheaper than a loan as well.
Can Save up for Things
Having savings means that you get used to putting some money away from time to time. This will get you used to the idea of doing this and will mean that you will be more able to save up for things. It can be really useful saving up for items because it means that you will not have to borrow money to get them. If you can build up a decent amount of savings, it means that when you do need expensive items, you may already have the money available to buy them, even when you are buying something quite expensive. This will mean that you will not have to wait to buy the item and you will not have to borrow money. The reason saving is better than borrowing is more than just the cost. Normally it is dearer to borrow money than to use savings, but you will also find that you will have to normally make regular repayments. It can be stressful making these repayments or perhaps difficult finding the money each month. However, if you miss a payment you will have additional charges, so it is something that you really need to make sure that you do. If you use savings, it is likely that you will want to repay these too, but you will be able to be more flexible and if you cannot afford to put some money into your savings account one month, then you will not need to.