Frugal living with a cash savings account are becoming more popular than ever before. With all the troubles that the economy is having, many people have discovered that it is not always as easy to save money as they had imagined. The economy will continue to be in turmoil for quite some time. Many people will be forced into a position of being on the tight end financially.
A cash savings plan should be one way that you can be sure to have enough money put aside each month to take care of your basic needs and to make ends meet. In an era of continuing economic instability, it is important that you protect yourself and your family from any potential hardship. For this purpose, you should always put money aside in a checking or savings account.
In addition to having a checking account, there are other good places to save money. One of the best places to put money aside is in a savings account. Most banks these days have high interest rate savings accounts. It is definitely not unusual to see savings rates as high as 10 percent. You may want to check with your local banking officials to find out what the current rates are so you will be able to get the best possible rate when you decide to open a savings account.
Having a savings account is one way that you can have money left over after expenses each month. You should always have at least some money left over at the end of the month to cover living expenses and other expenditures such as debt payments. You should be sure to save extra money in case a need arises in which you need to use that money right away. Some emergencies do not warrant having extra cash immediately available. Instead, you should plan ahead and save up that money for a rainy day so that you will be prepared when that rainy day comes.
Another good place to have extra money left over each month is in a checking account. Many banks these days have high interest rate cash savings accounts that you may want to consider. These bank accounts are much more likely to offer better interest rates than saving accounts from credit card companies, and they are also likely to offer higher bonuses.
It is also a good idea to consider high yield bank accounts. Many banks offer high yield CDs (Certificates of Deposit) that pay high interest rates. You can withdraw this money and spend it on virtually anything. The money is insured by the FDIC, so you know the safety of your investment.
With inflation likely on the rise, having extra savings is another good reason to consider building a checking and savings fund. If you are like most people today, your monthly bills add up to a significant amount of money. If you put all of that money into a savings or a checking account that offers a high yield interest rate, you could easily have extra money for the things you need. Besides the obvious benefit of having more cash available for emergencies, having extra funds leaves you with more options should the need arise.
As mentioned before, inflation is on the rise. This means the cost of living is rising. In order to keep your standard of living from growing too far above what you can afford, you need to make money. Whether you are looking to make money taking a vacation, buying a home, or saving for an emergency fund, you should keep at it. With the economy the way it is, there are never any excuses to not save.