5 Savings Accounts Everyone Should Have

Author: Christopher Lorence|Thursday, December 3, 2020

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This guest post is written by author Eliza Cross, founder of the January Money Diet. Sponsored by Your Money Further and the Open Your Eyes to a Credit Union Campaign, this free annual challenge helps people save and start the new year financially strong.  

 

I think we can all agree that 2020 has been a year unlike any other. In addition to the challenges of managing life during a pandemic, we’ve had to deal with toilet paper shortages, homeschooling our kids and trying to set up cool Zoom backgrounds. For many, 2020 has also been a year of financial stress and uncertainty.  

 

Ideally, our money should be there for us when we need it. And with a credit union, it is. These are five savings accounts I recommend opening with a credit union to help reduce financial worries and anxiety: 

 

EMERGENCY ACCOUNT 

 

About ten years ago I charged $7500 on my Mastercard the day before my birthday. Did you travel to Paris to drink Champagne and eat stinky cheeses, you ask? No, our main sewer line broke and I was on the hook for the replacement. Wasn’t that a crappy birthday surprise?  

 

You can be better prepared than I was by regularly setting aside money for the inevitable unplanned emergencies of life. Most financial experts advise saving at least six months of living expenses. Once you have a cushion, you’ll also be prepared for times when your income fluctuates. 

 

Open an emergency account with a credit union today.  

 

VACATION ACCOUNT 

 

Vacations are high priority! One of the reasons we work hard is so we can enjoy happy times and make memories with the people we love. However, according to a recent survey nearly 75% of Americans have gone into debt charging vacation expenses.  

 

By regularly contributing to a vacation account, you can relax knowing that your finances will still be solid when you return home. (Need more motivation to save money for traveling? Check out “Distraught Travelers Reveal Their Worst Vacation Experiences.”)  

 

Let a credit union help you save for your dream vacation! Find a credit union today.  

 

RETIREMENT ACCOUNT 

 

We all know that funding a retirement account can make the difference between spending our golden years lounging on the beach at Margaritaville or watching YouTube videos about repurposing shipping crates.  

 

In addition to the benefits of interest compounded over a long period of time, traditional IRAs offer the advantage of tax-deferred growth, while a Roth IRA provides tax-free income in retirement. The key is to start now and invest regularly. 

 

Invest your money today with the help of a credit union.  

 

FREEDOM ACCOUNT 

 

Whether you pay for income taxes, a yearly HOA bill, holiday gifts or your annual dues for the Sheepadoodle Society, saving for large annual expenses will eliminate the hills and valleys in your monthly spending. Simply deposit 1/12 of the total each month in your Freedom Account, and you’ll be all set when the bill comes due.  

 

You can watch your freedom account balance accumulate over time. Find a credit union today to help.  

 

LARGE PURCHASES ACCOUNT 

 

Perhaps you’re dreaming of buying a home, purchasing an automobile, funding a college education or making a judicious addition to your Fabergé egg collection. By making automatic deposits to a dedicated account, you’ll be on your way to achieving those big goals.  

 

When it comes to setting up individual savings accounts, I’m a huge fan of credit unions. Many credit unions have low minimum balance requirements and allow members to open multiple accounts for different purposes. Find a credit union today and start saving.  

 

What exciting things are you currently saving for? Do you have any additional suggestions to add to this list?  

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Christopher Lorence

Christopher Lorence

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1 comments on article "5 Savings Accounts Everyone Should Have"

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Swarnalatha

1/6/2021 1:38 AM

Super nice concept

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