In case you hadn’t realized, savings and our ability to collate them are a pretty big deal. That’s why there are now countless online articles about how exactly you can ‘save $10,000 per year, guaranteed!’
This is excellent stuff, and it’s led to a more robust financial future for many already. But, when you delve into the countless saving information out there, it all fails to tell you one crucial thing – what are you supposed to do with your savings once you’ve got them?
Many of us, therefore, assume that keeping savings in the bank is the right way forward. Obviously, a saving-specific account seems best, but, in the meantime, most of us see nothing wrong with letting savings build in our basic current accounts.
Admittedly, savings here are still better than savings nowhere, but that doesn’t mean this is the ‘right’ thing to do, or that it’s going to see you caring for this money in the best way. After all, instead entrusting your savings to a tested and established broker could see you earning even more for your efforts. Equally, tying savings into a business or other enterprise could prove lucrative. Most importantly, these saving alternatives save you from the following bank-based pitfalls.
There’s an Increased Risk of Accidents
Countless individuals have fallen foul to accidentally spending savings in the bank, and this alone pretty much ruins their efforts moving forward. The trouble is that, when your savings and general finances are in one account together, it can become almost impossible to keep track. One overspend, and your efforts will feel wasted. Then, you’re far more liable to spend the rest of your savings too. As simple as that, you’ll be back at square one.
While a rare few individuals can keep savings in the bank without touching them, you need to be honest about whether you’re one of them. If you want to make your life at least a little easier, then you’ll take those savings out of the equation for peace of mind before your next payday.
You Might Be Hesitant to Spend
In direct contrast to the point above, you may also find yourself reluctant to spend those savings when the time comes. The issue here, of course, is that savings are only ever useful if you spend them eventually. Yet, if you’re used to seeing a significant figure everytime you check your balance, you could become hooked on the feeling. After all, it’s wonderful seeing the rewards of your saving hacks and knowing the security they bring you. This could mean your intended saving purpose passes you by without a cent spent on the cause. And, that’s obviously bad news.
By instead seeking alternative investment options, you can achieve that same peace of mind without the visual representation that leads to issues like this. Instead, your savings will already be out in the world, earning for you, all while guaranteeing you can weather any financial storm.
You’ll Be a Sitting Duck for Fraud
Fraud can strike anyone at any time, and this is another glaring issue with bank-based savings. While fraudulent activity on your card is never pleasant to see, you can bet it’ll sting a whole lot more when you’ve got $10,000+ in the bank and at risk. Yet, this is a reality you could face from something as simple as buying from the wrong website or even opening an infected email. And, don’t get us started on the panic that you’ll feel if your card goes missing with this much money at stake!
Again, this alone could see you back to square one on the savings front, and that’s sure to take its toll on your future efforts. Plus, this will cost you the security you’ve worked so hard for up until now. That’s a negative on both sides, and it’s something you should avoid at all costs. While some banks do offer refunds in cases like these, it’s never a given, and will largely depend on your unique case. Instead, the best way to protect your funds is to put them somewhere else for safekeeping sooner rather than later.
A Final Word
If you’ve managed to accrue a decent savings pot, then good for you. You’re in the best financial position you could ever hope for! Now, make the most of your benefit by saving your funds from the fate of your bank account, and finding more secure outlets for the money that’s come to mean so much to you.