Top Four Savings Accounts to Have
The Importance of Different Types of Savings Accounts:
Welcome to Allcalculator.net! Plan your financial future with our Savings Calculator. Since times are ever-changing, we have yet to learn when we need money for an uncalled emergency. It is very important to have at least one savings account. Remember, your current account should be different. It could be used for different purposes, so when you need funds, you have them available.
What type of savings account should you have?
Allcalculator.net’s Savings Calculator has got you covered. There are four types of savings accounts you can have.
Save for an emergency fund
As the word suggests, an emergency is a called situation but can happen anytime to anyone. According to Pew Charitable Trust, almost 60 percent of families have experienced an emergency in the past 12 months. Most of these included car repair services, separation, widowhood, visiting a family member in the hospital, a pay cut, or any other unplanned expenses.
If an amount is saved in emergency funds, one may need to borrow in Credit Cards or personal loans. And once borrowed, one gets stuck in the loop of paying monthly to the bank or financial institution that provided the funds during the emergency. It gets harder to manage other finances also. To avoid being in such a situation, one can use a savings account specially created for emergency. One can use our Savings Calculator to determine how much cash needs to be saved from the monthly income in the emergency funds and manage the rest of the month's finances conveniently.
Savings in terms of Car or Home Maintenance funds
As per AAA budgeting, around $600 annually and $ 50 per month are advised for car or Home maintenance. At the same time, Labor Statistics suggest saving $2335 annually as the maintenance cost of car and home repairs, and insurance included.
Although one may only spend this for part of the year. But there may be a time when you will need a larger expense for renovation or to build a new roof. If some money is set aside regularly, it won't be a sudden burden on your shoulders. You will have some funds available in savings if no savings account is dedicated simply to a car or home loan. One would be required to use the amount saved as emergency funds. Use our Allcalculator.net savings calculator to compute the amount you must set aside to maintain your car and house whenever you plan to renovate or change the interior of your house. You already have funds available irrespective of breaking the emergency fund or using the current account.
Save for your big and lavish vacation
Everyone loves vacations. But everyone also knows vacations can be expensive, so if you want to go for a vacation at your fav planned spot. It is only fair to start saving already instead of using your income or current account to carry out expenses. Because managing other finances becomes only possible if the funds are adequate. By using our Savings Calculator, one can put an amount aside to take a vacation. So a sudden vacation plan may not be so sudden if you are financially upright.
Saving for a big purchase is crucial
There could be a point when you must make a big purchase. It could be a house, a car, furniture, gadgets, or other things. It can be paid with something other than your salary; you would require some amount to purchase the big/expensive thing.
Suppose you have a savings account dedicated to the purchase. In that case, you should be able to purchase it without worrying about incurring interest costs or committing to monthly expenses to carry out the expenses accordingly.
Having a savings account dedicated to these purposes can help you in having the amount set aside for these things. At the same time, you can even plan your finances accordingly. Our Savings Calculator will compute the amount you can set aside each month for all of the above-mentioned factors and have some at hand to carry your finances accordingly.