If you have a well-paid job or lack outstanding debts, you may think it unnecessary to set money aside. Nevertheless, several instances can arise wherein you will be glad for–or will want–a well-stocked savings account.
Save for Emergencies
Savings can provide some much-needed relief during an emergency. For instance, if you require medical treatment—such as emergency dental care—without delay, you may have to pay hefty fees for the speed of service. Knowing you have the funds to pay for emergency treatments or repairs will give you one less concern during a dire situation.
Prepare for the Unexpected
Even if an unexpected expense does not qualify as an emergency, it could still come at a high price. Parents, for example, may have unplanned expenditures due to extracurriculars, school supplies, clothing needs, and more. Adults without children can face unexpected costs if they participate in new activities, need new shoes, or purchase supplies for hobbies. Money set aside for unforeseen events can help defray their attendant costs. It helps keep you on track with your regular expenses.
Avoid New Bills
Your savings account also keeps you from creating bills for yourself. When you have money in savings to cover unanticipated expenses, you need not use payment plans or credit cards for extra costs. A healthy savings account will prevent you from constantly owing money to other parties.
No matter how your budget’s size, factor savings into it. It is an investment that will pay off in the long term.