Thinking About Savings

By Author: Bonny Kominek
Total Articles: 32
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The economy, while recovering, is not exactly in the best of shape. Where once only a few years ago we were measuring growth in nice big full digits with no 0''s in sight, now we are making a song and dance if we even get into single integers. A 0.1% growth for a quarter is still pretty laughable no matter which way you look at it.

The thing that really got me however, about the whole financial crisis and recession, was not the millions and billions of dollars of cash being thrown around, nor was it the humbling sight of vast financial institutions like Lehmann Brothers being brought crashing down, it was the fact that so many people had been caught with their trousers down.

Everyone was caught out. Badly. Savings in those Icelandic banks? Probably not for much longer? Think your mortgage was safe? Think again? Those savings you had saved up for a rainy day? Well, now its pouring

This is the thing that caught my attention. I have always been a saver, but the financial crisis really highlighted just how many people went without having a savings account. When the trouble hit, I had more than enough stashed ...
... away to bail me out. A lot of people didn''t and faced the consequences of repossessed houses, lost jobs and no way to pay the bills.

Now, I am not saying this to be smug. But you need to have savings. There is absolutely no way of knowing what will happen anymore, especially with financial matters, so the best bet is to keep as much stowed away as you possibly can.

The figure that most economists give is that you should have around 12 months wages saved up somewhere. This will cover you in almost all circumstances until whatever emergency it was blows over and you can get back on your feet. 12 months, it may sound like a lot but you will thank yourself for it when things start to go wrong.

Of course, the interest in savings accounts has skyrocketed since the recession. Many commentators say it is far too little too late, but I think that it is never too late to start saving. Sure, everyone would have been a lot better off, but at least you can avert the future catastrophe.

So where to look? Alliance and Leicester are a good place to start with incredibly good savings rates at the moment, but any of the big high street names are a good bet too. Keep an eye out and do your homework, there are plenty of deals to be found. Bonny Kominek is a financial expert and writer with over 20 years of financial experience. They recommend you take a look at Alliance and Leicester for your savings options.