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Open Savings Account - 3 Reasons You Should Have A Savings Account
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An open savings account is a great place to start saving money for just about anything you can want. An open savings account can be used to save money for college, or to buy a car, or even to build up funds for a down payment on a house. I like to use my saving accounts for a different purpose however. I use mine to safeguard against loss of income from my job. Here are three reasons why it's a good idea.

Replacing an Income Stream Can Take Time

The number one reason I have an open savings account (actually I now have several at multiple banks) is because like anyone else working for a living today - I fear for my job. I mean really - who doesn't fear losing their job these days? I suppose people with piles of cash, stocks, and bonds probably don't fear much in the way of losing their stream(s) of income but the rest of us don't have that luxury. It once took an average of six months or less to find new work at an equivalent rate of pay. Nowadays it takes 18 months or longer. Try telling that to your oil or electric company.

Unexpected Expenses or Bills Can Multiply

Another potential hazard with living today is the number of problems that come up when a sudden wave of bills comes due. This inevitably happens to me during the holidays because of gift spending plus auto registration, oil bills, and insurance payments. Then once I pay all that the mortgage and credit card bills come. It adds up fast and if you haven't got something stashed away it's easy to fall further into debt. Then the interest charges start coming and before you know it, you're done for financially. It doesn't have to be this way though.

An Open Savings Account with Funds In It Reduces Stress and Worry

A well funded open savings account can reduce a lot of the headaches associated with our stressful lives today. I automatically put away $25/week to prevent having to use one credit card to pay off another, or to avoid having interest charges mount on the oil bill when it comes. I was lucky and didn't have to dip into it this year but in prior years it has really saved my bacon.

Most smart people these days go with an online savings account for their emergency funds. The advantages of doing so are tremendous. Click here to see if opening a savings account online is right for you.


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