Having a savings account in place to use during times of emergency is a very viable financial strategy. None of us can fully predict the way that life will go, so a fund dedicated to having money in place to help out whenever necessary is a very good idea. According to research conducted, many Americans have little to nothing in their savings accounts on average.
While this can be partially attributed to the economic recession that is affecting us all, the fact of the matter is that people are simply not as good with their savings as they tend to be with their checking account. The concepts is immediate access versus long term stability come to mind as people use their funds to take care of what is necessary in the moment.
While handling pressing financial responsibilities is something to be encouraged, a lot of people take the money which is left once they have addressed their mandatory matters and spend it quite quickly. In essence, they are taking the discretionary funds that they have left over and are spending before putting it into savings.
Common as this habit may be, it is not something that effectively builds up a savings account. You want to be assured that there is money in a savings account, whether someone just lost their job, there has been damage to your home, or there is a need to cover any large expenditures that you might have.
When it all comes down to it, having a savings account in place gives you peace of mind along with economic stability. If you are secure in the knowledge that there are funds that you can draw on, it will lower the overall amounts of stress in life. Make an effort every month to put something into savings- you will be glad that you did!