Nearly half of all Black families don’t have ANY cash set aside. However, saving for the future with a healthy savings account is the best foundation for any financial plan. Why?
A savings account can help us prepare for emergencies like car repairs, doctor bills, and home repairs. For Black people, emergencies can be especially hard-hitting due to a lack of monetary reserves, space between what income comes in and expenses go out, and a persistent historical wealth gap.
To counteract a financial catastrophe, experts suggest setting aside 3-6 months of expenses. But even $500 in the bank is better than nothing.
Many folks are switching to online savings accounts. Online savings accounts frequently give users the convenience of banking from almost anywhere at any time, and they offer some of the best interest rates.
A healthy savings account can help you protect your hard earned income from being drained by unexpected major expenses.
Imagine paying cash for that car repair or new washing machine instead of maxing out your credit card or being exploited with high interest rates from payday loan companies! Daily compounding interest can also help you start EARNING interest instead of PAYING interest.
Many of us were not taught these foundational financial literacy lessons. But it's never too late to develop healthy financial habits!
Putting money aside can help keep you from spending it impulsively, protect your monthly budget from the negative effects of an economic downturn, and give you peace of mind knowing you're making smart money decisions.