1. Their use of credit cards and resulting debt leaves many people with no disposable income to put into a savings account.


2. Many people feel that saving only a small amount is not worth their time.


3. Many consumers feel that with low interest rates on savings accounts that their money is put to better use elsewhere.


4. Many people are unaware of the value of saving money and preparing for emergencies. They tend to have a mentality that deals only with the crisis in front of them and not something that "could happen".


5. Many consumers are unaware of how much they should save and where to get the best rates on their savings.

While many people will continue on with their non-saving pattern for many years or even the rest of their lives others are realizing the value of savings and looking for ways to save money and prepare for potential emergencies. If you have been caught up in one of the above listed reasons here is some information on why savings and emergency preparedness are part of good financial planning-

1. Many people feel that they cannot save due to the amount of expenditures and amount of credit card debt they have. Financial experts agree that the main priority is to pay down debt yet if a person does not have any savings and an unexpected event does occur (car repairs, medical bills, unemployment etc.) than the consumer is left with no choice but to run up even higher credit card bills. By having some savings (even a small amount) should that rainy day expense come up you will be able to defray at least some of the cost rather than adding to your credit debt.
2. Many people say they do not save since they can only contribute a small amount every month. Keep in mind that even a small amount can add up over time. Saving money is like any other habit you must set up a regular habit that is consistent in order to be successful. And best of all over time you will see the rewards as the amount adds up and you may just be able to add to your monthly amount as time goes on.
3. While many people will be reluctant to save due to the low interest rates they must keep in mind that over time interest compounds and adds up. While current rates seem low even without any change over time interest can add substantially to your savings amount.
4. Many people are simply unaware of the value of saving. While we all like to assume that nothing bad will ever happen, statistics show that is simply not true. Unemployment, divorce and even death of a spouse or partner can alter financial standing quickly and dramatically. Even more common is the disability or change in health of a wage earner that makes having a savings account even more important. Wise consumers who prepare for the unexpected can calmly face whatever comes knowing they have something to fall back on.
5. Some people may claim ignorance on how to save. A quick visit to your bank or other financial institution can give you the information you need. A reputable loan officer will be able to explain all the options to you and help you set up the savings account that will be the most beneficial to you and benefit your financial standing in the best possible way.