The importance of savings

Only about 40% of families have liquid savings equal to three or more months of expenses, and just 28% have more than six months. If you are among those who are struggling to build savings, it may be helpful to review why saving, even in small amounts, is important.

• It makes your long-term goals achievable: Buying a home or a car may feel daunting but having a plan in place is key to meeting these goals. Understanding which types of accounts are best for long-term savings can also be a major support in meeting these goals.
• It makes your short-term goals achievable: Short-term goals, like travel, buying holiday gifts, or even home improvements, are important. Committing to saving a specific amount of money for goals like these can help improve your quality of life.
• It allows you to plan for your ideal retirement: Retirement is something that should be a part of your financial planning throughout life. While experts recommend having saved up 80% of your current annual income for each year you plan to be retired, there are tons of strategies you can use to accomplish that goal.
• It will help you to avoid unnecessary debt for emergency expenses: Life happens, and it’s a good idea to have money set aside to deal with random events like car issues, home repairs, traffic tickets, or travel home to visit a sick relative. Plus, having several months of household expenses saved up can reduce some of the pressure if there is a loss of income.

The information in this article was obtained from various sources not associated with Adirondack Bank. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. Adirondack Bank is not responsible for, and does not endorse or approve, either implicitly or explicitly, the information provided or the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. Adirondack Bank makes no guarantees of results from use of this information.

Article written by EVERFI