We live in a fast-paced world that makes it way too easy for us to spend. Instant pay features, the option to buy now and pay later, and ability to store your credit card info for a quicker checkout play into our preference for instant gratification.
It can seem challenging to battle the temptation to spend with the desire to save for the future. The good news? It can be done! And once you make that commitment to yourself, it is actually a self-gratifying experience. Like committing to a new healthy lifestyle, saving for a healthy financial future is a down payment toward your future self. There are some innovative and rewarding ways to save and none better than the time-tested savings account.
The traditional savings account has been around for a long time, dating all the way back to the early 1800s and has evolved to encourage savings in ways that are appropriate for the modern consumer.
These are 3 reasons why you need a savings account:
1. Curb the Temptation to Spend
At the end of the month when all the bills are paid, there is a dollar amount left over that many of us call a discretionary budget. We may keep that money in our account to use for emergencies or we may think of that leftover amount as our savings. While we promise ourselves to let that amount accrue every month, we tend to dip into it frequently for petty purchases and recreation.
The problem with consumption is that it becomes habitual. The upside is that we can make a habit of saving too. By having a savings account, you can overcome the urge to spend by simply setting money aside every month where it is out of sight and out of mind. The best way to make sure you don’t even have to think about saving is setting up an automatic transfer weekly, bi-weekly, or monthly from your checking account to your savings account.
According to your budget and spending, you can plan how much to set aside every paycheck. Most financial coaches suggest putting away 20% of your income after taxes every month. That doesn’t mean you have to hit that target right away. You can start small and incrementally increase your savings deposit every month until you reach your target amount. By doing this, you are taking your first step toward deliberate budgeting and long-term saving goals. This will also relieve you of using your leftover funds as your only form of life support down the road.
2. Your Money Works for You
Another benefit of having a savings account is that it accrues interest according to your entire collected balance. To put it more simply: you are being paid to save your own money. Over time, this snowball effect reinforces your savings as your account grows. When you first open your savings account, interest payouts are fairly insignificant, but as your account balance builds, you can see interest payouts start to increase.
There are higher rates of return possible through money markets, CDs, and stocks; however, a savings account is protected from market instability, which mitigates your risk of being set back by a downturn in the economy. While these other savings tools may be great options for seasoned savers, successful savers at any stage usually have one thing in common: money in a savings account that they maintain throughout their lives.
3. It’s a Rewarding Experience
With an OZK Savings account, you have the chance to win money simply by saving. The more you save, the more chances you earn to win a $1,000* every month to jump start your rainy day fund or help crush your savings goals. Having smart money habits to help you plan for the unexpected and the expected can really be a rewarding experience.
By making a commitment to save today, you can break the cycle of living paycheck to paycheck. Start rewarding your future self with a nest egg that will grow as you do!
The $1,000 Prize Linked Savings promotion is not available to residents of Florida.
*Eligibility for this Prize Linked Savings Promotion requires an OZK Savings Account. Open to legal United States (U.S.) residents, residing in the states of Arkansas (AR), Georgia (GA), Texas (TX) and North Carolina (NC) who are 18 years of age or older. Void outside AR, GA, TX, NC and where prohibited. Eligibility requires an OZK Savings Account in Arkansas (AR), Georgia (GA), Texas (TX) or North Carolina (NC). Starts 12:00 a.m. Eastern Time (“ET”) on 01/01/23 and ends 11:59 p.m. ET on 06/30/23. For complete rules, visit winatozk.com. Sponsored by Bank OZK, 18000 Cantrell Road, Little Rock, AR 72223. Each $25 eligible deposit made to an OZK Savings Account is equivalent to one entry. The number of entries is limited to 10 per customer per Monthly Prize Period, from all qualifying accounts held by the Account Holder. Prize awarded as a direct deposit to the winners OZK Savings account. Go to winatozk.com.