A savings account is an integral part of anyone’s plan, whether long term or short, to building wealth. When you put money aside into a savings account, you’re creating a “safety net” for you, your family, and your hopes and dreams. By being prudent and responsible in the short term, you’re doing a good job at taking care of yourself and those you love in the long term. It’s hard and you definitely need willpower to not spend your savings on all kinds of fun things, like shiny new toys and gadgets, or trips to Mexico or Italy – you need to ask yourself which is harder, resisting the urge to buy something you don’t really need, or getting through an emergency without the necessary funds? You’ll probably agree that foregoing a new gadget is easier than not being able to pay your rent or mortgage.
As part of a long-term strategy of building your personal wealth, a savings account will be one of the major players. Savings accounts can offer competitive interest rates that will actually add to your reserves. What’s more, the money you put into your savings account will be accessible at any given moment. Other investments and wealth-building instruments, such as stocks and bonds, or money market accounts, may take longer to access should you need to cash them in, or may come at a price. For example, many financial institutions charge fees when you sell a stock, or take money from a money market account. In general, that’s not true of savings accounts.
Slowly but surely building wealth by depositing money into your savings account is a practical, prudent, and responsible thing to do. It doesn’t involve risk, like buying stocks or bonds, and the more you do it the more you enjoy it. Putting money into a savings account builds more than just a stable future, it builds your character.
To learn more about savings accounts and overall strategies for building your wealth, be sure to sit down with a financial adviser or bank representative to get the full picture. You’ll learn a lot and get some great ideas on how to prepare for a better future.