Expect the Unexpected: Reasons Everyone Should Have a Savings Account

Savings accounts are a thing of magic. There are very few places on Earth where someone can get money on top of money for doing absolutely nothing besides letting it sit there. Like a bottle of wine, savings only get better with age.

While savings can often be used to put aside money for a brand new car or house down the line, they also serve as something far more valuable: an emergency fund.

While there are other services out there to help someone out of a rough patch, many people don’t plan for the unexpected until it’s smacked them in the face and they’re left with few options.

Maybe you’re an optimist and you don’t like to think about rainy days. But the truth of the matter is that you never know when life is going to throw you a curve ball. These issues pop up for people all the time and without a nest egg, there’s little you can do to recover without finding yourself over your head in debt.

  • Job Loss – Let’s face it. Unemployment is at record highs in many places in the world and too many people find themselves in dire straits if their company decides they can’t afford their staff. If you have several months worth of living expenses tucked away, you’re much less likely to find yourself racking up credit card debt that will stay with you long after you find your next gig.
  • Big Ticket Items – The alternator in your SUV went out. The furnace in your home is on the fritz. Maybe a relative’s health causes you to book a plane ticket to be by their side. These are the type of things you can’t plan for – except by putting away a little bit of money each month. Even if you don’t have the money to cover your sudden expenses in full, the extra bit of money you’ve been setting aside will surely help with the bulk and a little crafty budgeting can get you back to where you need to be in no time.
  • Medical Expenses – No one ever expects to get sick or hurt, but the last thing you want to be worrying about while you’re lying in the hospital with a broken arm from your company’s softball game is how you can possibly pay for your ambulance trip (cross your fingers for workman’s comp). Depending on the emergency you may not be able to pay back your medical bills in full, but with a solid down payment most companies are willing to work out payment plans that you can afford. The last thing you want is a high-priced hospital bill being sent to a collection agency and held against you.

With a little bit of planning and a whole lot of luck, you’ll be able to handle anything that life throws your way.

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