In the current economic climate, smart consumers are looking for ways of making their money go a little bit further.
Online savings accounts have become very popular, with many feeling the need to build up savings to give themselves some financial breathing space, especially as they see many of their friends lose their jobs.
The protection of a robust savings account is evident in a story of two friends:
One who put extra money into his savings while the other tried to pay his mortgage off early by paying extra money every month. When both lost their jobs, the friend who had saved had enough funds to pay his bills and his mortgage payments and was able to keep his house. Whilst his friend, due to not having any savings, was unable to pay his bills or make his mortgage payments, causing him to lose his house. Sadly, this is happening all across America and it is prompting many to increase their savings to help ensure a more certain future.
Unexpected Job Loss
With the economic future uncertain, change appears to be the only constant. As such, any extra money that you may have should go toward your emergency fund as opposed to mortgage prepayment.
If you have 3 to 6 months worth of living expenses in your emergency fund before, now is the time to beef it up to 12 months. Why such a big jump all of the sudden? The greater margin of safety is needed because it is now much harder to get a decent job than it was a year ago. Even the most skilled workers could go unemployed in this economy for many months. In this troubled economic time, no one is assured of keeping his/her job.
Savings accounts may be the only saving grace for many of us. Growing your money in a savings account makes more sense now than ever. Making sure to save a specified amount each month will insure you will not be out in the cold when a real crunch hits.
Online savings account are enabled to pull any amount you specify out of your bank account on the date you allow them to do so. View some of the highest yield savings accounts where you can let your money work for you