An astounding 78 percent of Americans live paycheck to paycheck. Many of them were affected by the recent government shutdown. Fortunately, you can take control of your finances today. One smart way to do so is by having multiple savings accounts.
Benefits of Multiple Savings Accounts
One of the most significant reasons for having multiple savings accounts is having multiple savings.
It is possible to keep all your savings in one account and keep a ledger detailing how much money is saved for each goal. However, it can often be motivating to see how much you have saved specifically for your dream honeymoon, your children’s college tuition, and a remodeled kitchen.
Separating your savings truly is important. Whether your emergency fund is one month of rent or six months of income, it is critical to your financial security that your designated emergency fund is both separate from your day-to-day spending account and easily accessible in the event of an emergency.
Having multiple savings accounts makes it much easier and more effective to save. Create deadlines for how much you want to save in each category, such as a new roof, a vacation, and retirement. If you want to save $2,000 in six months for your vacation, set up weekly transfers of $83 to your travel savings account. If you have a goal of saving up $8,400 for a new roof in 30 years, set up automatic transfers from your checking account to your home maintenance and repair savings account for $5 per week.
Benefits of Savings Accounts from a Credit Union
Savings accounts with credit unions, such as Georgia Heritage Federal Credit Union, may be better than savings accounts at traditional banks. The customer service is often better.
For more information on how multiple savings accounts may help you experience financial freedom and fortitude, contact us today.
