People are lucky today. They have access to both checking and savings accounts. Here are the reasons why it makes a lot of sense to have both types of accounts on hand.
Savings is a Must
Savings are one of the single most important things you must do in your life. Savings provide a cushion that you can use in the event of an emergency. They also provide a chance to get ahead in life and move to goals like buying a home and retiring. If you have a savings account, you can put in the funds you want in the savings account and begin creating a nest egg. Working with Lantern by SoFi means it’s easy to have both a savings and a checking account. As they state, “We’re proud to say that banking with SoFi has no account fees and no service charges—and we’re working hard to keep it that way.”
Directly Paying For Things
When you have a checking and savings account, you can separate out two important functions easily. You can use the checking account to pay for the items you want to buy. Meanwhile, the money you have designated for savings stays in your savings account. That will ensure you know exactly what you’re saving in any given period as well as what you are spending. This way, you can track all your financial goals in any given quarter.
No Need For Cash
Carrying cash has a lot of disadvantages. While you might need to have a small sum of money just in case, it’s often a lot better to have as little cash on hand as possible. This way, it does not get lost or stolen. Using a checking account means that the money you’re paying for things is always on hand and cannot be lost or stolen.
Record keeping is one of the most important things you have to do in your life. You will need to demonstrate accurate record-keeping for many reasons. That includes taking deductions when it comes to filing your taxes, as well as making sure you are saving the amount of money you want. Using separate accounts for checking and savings makes that a lot easier to sort out each week and over a longer period of time.
Above all, different accounts ensure that all of your funds are kept as needed for the purposes you have in mind. Use your checking account to track your salary when you have a direct deposit. You’ll see how much money you have on hand to use for all of your bills. Use the savings account to create the nest egg you want that you can use to secure a better future. Each account lets you consider exactly how you use your money and implement a course of action.
Having separate checking and separate savings accounts offer lots of major advantages for all modern users.