Life in modern Britain is costly. The price of living is high, and it often seems as though the money that you make is there and gone in an instant. Many families feel that they’re forced to exist hand to mouth, forgoing all of the little luxuries that they would love to enjoy.
That’s why a savings fund has never been more important. Although contemporary culture prizes spontaneity and excitement, there are lessons to be learned from our thrifty forbears, and putting money away for a rainy day is one of the most relevant.
Here’s how a savings fund could help to secure your future…
#1: Savings Funds Help to Avoid Financial Emergencies
Many people believe that a bird in the hand is worth two in the bush, and this is one of the primary reasons why families may avoid tying their money up in a savings account. However, it’s important to remember that such effects are only temporary. Savings accounts will never take your funds out of your control indefinitely, and once you’re able to access them, they can prove invaluable in emergencies. Should a burst pipe, broken-down car, or ill-functioning phone force a sudden and unexpected bill on you, the money you previously set aside is there to cover it, meaning that you won’t feel the impact of it coming out of your ordinary monthly income.
#2: Savings Funds Reduce the Risk of Indebtedness
As we mentioned above, stockpiled funds are invaluable when unexpected financial emergencies arise, and they also have the added boon of helping to avoid indebtedness. Without money to fall back on, those who face such a scenario are often forced to borrow, and this can lead to an unending cycle of indebtedness, with added interest meaning that your loan takes forever to pay off. Those with their own funds to rely on need never face the same risk, meaning that investing in a savings account today could prove to be your saving grace tomorrow.
#3: Savings Funds Can Be Profitable
Savings funds can be invaluable in times of financial emergency, but they have the added benefit of also being profitable. Entities like Kent Reliance offer some fantastic rates for those in search of a good deal, and ISAs, bonds, and other savings options can really help to maximise the money that you put aside.
Why not protect your family today and start your own savings fund?