Since you were a little kid with a piggy bank, you’ve heard about the importance of saving money. Building your savings – whether for an emergency or retirement – is a practice preached repeatedly by financial advisors, economic experts and probably even your parents.
But while we know how important it is to save, the fact remains that 52% of Americans don’t have a savings plan or savings goals, according to a May 2016 Bankrate.com study.* So why should you start?
- Build Your Savings Habit
The easiest way to get used to putting some money into savings is by creating an automated deposit from your paycheck into your savings account. You won’t have to remember to set aside savings each month and you’ll hardly notice the extra money missing from your checking account.
- Prepare for Unforeseen Expenses
According to the same Bankrate study, 66 million Americans have absolutely nothing saved in case of an emergency.* In fact, 47% said they would not be able to cover an unexpected expense of $400.*You never know when you might need to replace the tires on your car, pay for a trip to the hospital or cover an unexpected bill. Typically, most financial experts agree that setting aside enough money to cover 6-8 months of expenses is a sufficient start for an emergency fund.
- Stop Living Paycheck to Paycheck
Your financial independence and the amount you have in savings are typically closely tied. The more you’re able to the save, the more you can base your financial decisions on your total financial picture and not simply your monthly pay.
- Save for Annual Expenses
Give yourself the gift of a stress-free financial life by planning ahead for annual expenses. These could include holiday gifts, vacations, weddings, taxes, childcare, home repairs and more.
How Merchants Bank Can Help
Now that you have four more reasons to save, get started with a Saving Account at Merchants Bank. We offer a variety of options, including our Summer and Winter FUNd accounts that help you automatically save from August-May or January-November each year with an extra special rate.