Most people with even a tiny amount of knowledge about financial well being know that having savings is one of the most important things you can do. In fact, if you have a savings pot to fall back on when times get hard, it can stop you having to get into debt. Additionally, your money can actually grow while you are saving it. Either with interest or by investing. Sadly, there can be many things that stop you from being able to build up your savings account. Fortunately, you can read about the most common below, along with some tactics for how to stop this happening.
It is a sad fact of life that for many people, medical bills are the main drain on their savings accounts. In fact, it is often the case that paying for medical bills means there is little left at the end of the month to save.
Of course, for the most part, medical bills are not something that you can avoid, as no one expects to have to pay for treatment after an accident, injury, or illness.
However, if you are involved in an incident such as a car accident that causes injury, you may be able to make a legal claim against the responsible party. Something you can learn more about doing by clicking the link. Then you will have change of recovering at least some of your medical costs. Thus ensuring all of your money is not used up by the end of the month. Therefore allowing you to have cash free to add to your savings account regularly.
Credit card accounts
Yes, indeed, credit accounts can be one of the most problematic issues that stand in the way of acquiring a decent amount of savings. The reason for this is that credit is a service that it costs to use. In fact, it can cost a great deal to use, often around 30% of the total you have spent!
What that means is that it can be very difficult to get out of debt when you have credit because there is always another fee being added to what you owe. Additionally, if you do have any savings, it makes more sense to use these to pay off your credit debts. Then you won’t incur so much interest and so will save money over the long term.
Sadly, this will then deplete your savings, and leave you will very little or even nothing at all. With that in mind, if you can possibly avoid using credit in the first place, that is the best plan.
However, if you must use it or already have credit debts that are weighing you down, move your balance to an account that has 0% for a time. Something that can help stop the increase of interest and make it easier for you to pay it off the total. Thus making sure that after your credit debt is paid, you will get the opportunity to build up and even invest your savings.