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3 Bank Accounts that Everyone Should Have
The term 'financial necessity' has taken on a new meaning over the past three years. Consumers that once worried more about style than expense have had to reel in their spending and reassess their big purchases, with the global economy shrinking at a rapid rate. Similarly, families that were once used to living a life of luxury have had to change their ways, particularly in the face of record debt levels.
All in all, it's been a tough three years, even for Australia's most financially healthy families. But in those three years, a large portion of the country's population has learned what a 'financial necessity' really is. In all the recovery efforts and short-term consequences, Australia's formerly spend-happy population has learned effective saving tactics, long-term investment ideas, and banking strategies.
We're going back to basics, and taking Australians for a financial foundation course. Bank accounts are one of the most important parts of your long-term investment strategy, and an equally important part of your short-term financial health. Before you consider yourself an expert investor, make sure you've got these three mega-valuable bank accounts in your financial arsenal.
1. A flexible, low (or no) fee chequeing account.
Almost all Australians have a chequeing account already, although many possess accounts that are less lucrative and flexible than they could be. The chequeing account is the foundation of short-term personal finance, and should be given the highest level of importance and priority. Find an account that's easy to use, low on fees, and able to be managed online or by phone for simple convenience.
But that's not all you should look for in a chequeing account. Speak with an assistant at your local bank about a travel-friendly chequeing account, preferably one that levies no additional charges for overseas ATM usage or currency exchanges. These features may not seem important, but they can save you thousands, sometimes even tens-of-thousands of dollars, over the long term.
2. A high interest long-term savings account.
Every investor, employee, or intelligent consumer needs a savings account. While most Australians possess a savings account already, few have access to one that's populated by any real funding. The spend-happy attitude has caught up with our country over the past three years, and it's resulted in a record low level of accessible savings for Australian consumers, workers, and families.
It's important that you build your savings empire on a stable foundation. Contact your bank and ask about long-term savings accounts and high interest policies. Most retail banks offer accounts which, in exchange for limited access to your money, allow you to collect a higher level of interest. These are what you should be looking at, as they significantly reduce the temptation to withdraw cash.
3. An emergency account that provides short-term security.
We've got the first two elements under control, now what about the third? There's more to personal finance than just savings and short-term spending, although for many people the two behaviours are all that matters. The final piece of the savings puzzle is accessible finance, which can be provided in the form of an emergency account which is accessible anywhere, any time, and in any circumstance.
Start building your emergency account today, and keep it filled with the amount of cash you would otherwise earn in two months. This can act as a financial cushion, preventing you from being short on cash should you lose your job, incur a significant medical expense, or run into a surprise bill. It's not a must-have financial asset, but it's really something that separates the amateurs from the pros.
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