Taking care of your finances is something we all look at and need to at least once in our lives, to be sure that we have either savings put away for a rainy day, that our retirement is somewhat if not completely taken care of, and that we have emergency funds for ‘just in case.’
But what seems daunting for most people looking to begin a savings or open an account where you can have a direct debit put money away each month but that is still easily accessible if a situation came up that needed immediate monetary aid.
The importance of a bank account and savings.
The most amazing fact about money and banking, in general, is that the practice has been around for centuries with the oldest (and STILL operational) bank opened as early as the 1400s. In ancient Greek, Roman, and Egyptian times there is evidence of money lending and ‘credit’ shown to be used in the form of tokens and the more common and popular option of cattle and the art of bartering (see more about that here https://en.wikipedia.org/wiki/Barter ) which has developed into the modern banking we know today.
So, the big question is, why do we need to have an account? Why can’t we do what the old wives’ tales express of keeping your money in a jar or under the mattress?
Firstly, because you may end up needing too many jars and then you’ll need to store or hide them so that your money is not ‘on display’. Secondly, sleeping on anything other than a bamboo gel mattress (personal preference) is not going to be comfortable, and as the money piles up so will the height of the mattress.
Every person has their reason for wanting or opening a banking account, let’s take a quick look at the topmost prioritized reasons why.
- Safety. This was a big factor for a lot of people, knowing that their hard-earned money is safe and sound in the account as opposed to in the home somewhere is a big weight off the shoulders. If you were to be burgled your physical money is not protected and it is essentially ‘free’ money for the thief.
- Simplicity. All homes have large appliances and equipment, and speaking from experience having just moved into our newly built home (but not yet complete- are they ever) the larger appliance also come with large price tags. Going into a shop with a bag full of cash that’s been recently printed might be best left to the movies. We are more than likely needing to pay with a debit or credit card which not only saves you walking around with a bulging wallet, but you have the evidence that the transaction has been approved and gone through.
- Spending. Seeing all the transactions in one place helps you to keep an eye on what you are spending, to keep on track with savings you may be accumulating till you have enough to purchase what you need and to tweak your budget as you see fit. It is easy enough to get carried away with a bank account full of money, so having it broken down into an easy-to-read format makes life that much simpler.
Many customers and bankers have a different reason for having a bank account, and that’s fine, each to their own as my granny used to say, see this link to learn more about the topic and to evaluate if you are on the right track with your financial plans.
There are different accounts and plans suitable for everyone and their needs, as well as to fit their current earnings, and to work with the banks and representatives to put even a few dollars away each month.
Emergency financial assistance.
Life as we know it is full of surprises, no matter how much we think we have things under control, Mother Nature likes to throw us a curveball from time to time and keep us on our toes. The problem with this is it usually comes with needing some form of finance, and quickly. However, we don’t all have immediate access to a big pool of money and so the credit part of banking comes into play.
If you think about it, we have all had some experience, albeit small, with a line of credit. It may have been as small as asking your parents for a few hundred dollars to buy the latest trainers available only for a limited time and which is why you needed the money then and there. Or perhaps you are wanting to buy a new car and you need the lump sum of a deposit to secure the vehicle.
This large sum of money is best applied for and accepted by large institutions that have the financial stability to support you temporarily. People who have opened a credit union money market account have essentially had the silver lining in their dark cloud and the request to their prayers answered, and you could have the same.
There is always a way to get a helping hand in life, be it through your friends, family members, or a banking institution that understands we all need help from time to time there is something for everyone.
You have the chance to make a better life for yourself with a financial lifeboat, and if you do it through a banking business company then all the better, live the quality of life you deserve.