Shane Lowney is an experienced mechanical engineer and a respected businessman who carefully manages his finances. In addition to his retirement accounts, Shane Lowney has a savings account that he adds money to each month. Like the adage “a journey of a thousand miles begins with a single step,” the path toward financial security starts with a single dollar saved. If you haven’t started your path toward financial security, the following reasons might inspire you to open a savings account the next time you’re at your bank:
- To build a safety net. In the modern economy, people are often laid off for no reason and almost everyone’s job is at risk. Having enough in your savings account to live off of for three months will make losing your job less of a crisis, if the worst happens. Lay-offs aren’t the only risk – you could get injured too badly to work for several months, need to go to another state for a sick family member or experience another crisis.
- To start accruing wealth. Each time you put a dollar in your savings account, you’re building wealth. You’ll get interest back on the money in savings, meaning that you’ll make money that you otherwise wouldn’t, and you’ll one-day have enough money to invest, if you wish to do so. Becoming wealthy doesn’t happen overnight, but as your savings account grows, so will your financial stability.
- To live your dreams. If you dream of owning an expensive car or travelling the globe, you’ll need money to fulfill your wishes. By saving a little extra each month, you’ll be able to apply your money to your dreams sooner than you would expect. For example, if you save $1,000 per year – that’s less than $100 per month – you’ll be able to take a $3,000 vacation in just three years.
Saving money requires long-term planning, but if you hope to one-day be as financially secure as businessmen like Shane Lowney, open your savings account as soon as you can and start putting money in it each month.