Reasons Why Having a Savings Account Could Actually Be Hurting You

Introduction:There are many people these days who strongly feel that having money in a savings account is important, no matter what. This is truly not so. Having a savings account could actually be hurting you and your finances. Here are some reasons why.

  • 01

    You Have Too Many Bills to Pay

    First of all, you have too many bills. Many people these days have a lot of money in savings accounts, because they strongly feel the need to have money saved up. The more, the merrier. It makes them feel good. Maybe they are saving for retirement.

    Many of these people, though, have too many bills. They have so many bills that they cannot even pay them each month when they arrive. Their savings account could actually be hurting them and their finances.

    Even though they cannot pay their own bills, they still feel the necessity to have a savings account. Instead of putting their hard earned money into their savings account, they should be paying their bills first.

  • 02

    You Are Paying Late Payment Penalty Fees

    By not being able to afford your monthly bills, you are paying late payment penalty fees every single month.

    Many people have money in savings accounts, and yet, they cannot even afford to pay their bills. This is totally working against the entire savings idea.

    It just does not make any sense to be saving all of your hard earned cash in an account in some bank when you are owing that bank, and others as well, any amount of money.

    You really need to pay your bills first. Not only that, but please, pay your bills on time. Just look at them late payment penalty fees that you are paying regularly. It is totally not worth it. Without these penalty fees, you would surely have more money that you could be saving.

  • 03

    You Are Paying High Interest Rates on Your Credit Cards

    Please, do not get me wrong here. It truly is a great thing to go out into the world and open a savings account. It is really great to be depositing money into this account with every single paycheck that you receive.

    It's just that this behavior could be costing you more money than it is saving you. Stop. Take a look at your credit card statements. More than likely, you are paying some very high interest rates for the privilege to be slowly paying these cards off.

    Contributing to a savings account at this time could be hurting you more than it is helping you. Consider paying off all of your credit cards before tucking your money away into a savings account.

  • 04

    You Owe Friends and Relatives Money

    Another thing to consider here, is the fact that many people owe money to their friends. They may also owe money to their relatives.

    It certainly is not wise to be more worried about pouring your money into a savings account when you are owing money to individuals around you.

    Surely, you may feel the need to be saving as much money as you can. You may feel the need to be saving as often as you can. Think about this, though.

    It would be wise to keep good relations with those around you. Even if that means paying them what you owe them, and saving at another time.

  • 05

    You Cannot Afford Essentials Like Food, Toilet Paper and Gas

    Depending on how strict you are with yourself and your finances, you may even be the type of person who has money in a savings account and are unwilling to take it out for any reason ever.

    Look around you. Many people like this end up living without essentials, because they are anxiously awaiting their next paycheck to be able to afford the essentials in their lives.

    People who put savings in front of everything else tend to do things like run out of toilet paper, milk, diapers. They run out of food, gas, and many other items that are bare necessities.

    Put money into your savings account when you actually have that money to save, and it won't be hurting you.





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Comments

  • okennedy 2/25/2016 Flag This Comment


    I agree to a degree. I don't think you should save money and leave yourself without the basic essentials. You shouldn't have a credit card if you are trying to save. It will most likely hurt than help. If you want to save you can also help by cutting back on some things that you don't need like cable,extra devices and other things like it.

  • goodselfme 4/1/2011 Flag This Comment

    I wanted to show my neighbor this list and was allowed to give you another h5

  • ListingToTheLeft 3/2/2011 Flag This Comment

    Good reasons to pay your bills first. I'm all for saving money though. However, paying the necessary bills is important too of course.

  • jseven 3/2/2011 Flag This Comment

    So true. We live in a credit driven society and call it living? Great list!

  • ListMaker 3/2/2011 Flag This Comment

    Paying debt back to friends and family is very important and I agree with holding off on savings while satisfying these obligations. Great title, btw. Drew me right in.

  • JoyceTeresaMann 3/2/2011 Flag This Comment

    For me the #1 reason not to have a savings account is the less than one-percent interest most are earning at the time of this list's writing.

  • clewand550 3/2/2011 Flag This Comment

    All excellent advice. Paying off this bills definitely make more sense than making pennies on a savings account. Excellent list.

  • snowfence 3/2/2011 Flag This Comment

    Thank you so much for all the wonderful comments. We probably all know people who can use these tips and learn that having a savings account really can hurt you.

  • SondraC 3/1/2011 Flag This Comment

    Good advice.

  • pbartelssc 3/1/2011 Flag This Comment

    Excellent advice. Many times your money can be put to work for you in better ways.

  • goodselfme 3/1/2011 Flag This Comment

    Good list of facts that a savings account can actually be hurting you. The financial advice you give is solid.

  • Belafonte 3/1/2011 Flag This Comment

    This is great information. Why keep thousands of dollars in a savings accounts when you are paying high amounts on interest with credit cards. Nice list!

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