Savings accounts are one of the best ways for people to set aside their extra cash. And opening multiple savings accounts can help you identify your different financial goals and ensure that you stay on track to achieve them.
Your savings account can be for your short-term and long-term goals. And, by saving, you can hopefully avoid debt.
But if you think about it, you should have at least one savings account rather than having none at all. Multiple savings accounts will save your sanity and your finances. Wave goodbye to mismanaged funds and anticipate different expenses in an organized manner.
That being said, we would like to share with you six savings accounts that are a must. They might just serve you well in your hour of need!
Emergency fund account
An emergency fund is an important type of savings account, it will protect you from surprise expenses, job losses and other disasters. An emergency savings account should roughly have six months’ worth of expenses. While the common idea is to keep $1,000 in an emergency account, there’s no right or wrong when it comes to your emergency savings. Your convenience is what matters most. But ultimately, it’s better to have one than nothing at all!
Slush fund account
This is just another regular savings account also known as a slush fund. Take extra money from your budget and save it here every month to cover up for budgeting mistakes. You can use this as your first line of defense instead of tapping into your emergency fund. If your dishwasher broke, take money from your slush fund, if a family member lost their job, fall back on your emergency fund.
Gift savings fund
Nobody likes worrying about money when it comes to giving gifts to others. So, to prevent that from happening, stash your cash into a savings account all year round to account for birthday gifts, christening gifts, baby showers, housewarming, anniversary and Christmas gifts. It’s pretty amazing how little you spend when you create a savings plan!
Car maintenance fund
Do you feel like you barely have money to get your oil changed? It’s probably because you haven’t jotted it down in your budget. What you can do is send a certain amount to an account specific to car maintenance and when it’s time to change the oil, brakes, or tires, you will already have money set aside for it.
Medical savings account
Everyone should have a medical fund of some sort. This account should cover all your deductible, prescription costs and doctor’s appointment fees. You can even set up a Health Savings Account through your insurance, bank, or even your work. The easiest thing to do is to set up a regular savings account to use as a medical savings account, whatever suits you best!
A spontaneous savings account
It’s always good to have a spontaneous savings account or a ‘just because’ account. These are for spontaneous weekend getaways, or maybe you want to go on a long drive with the kids. It is basically a fun money account. You can use it as you please.
