Most people understand the importance of having one savings account, but having two is even better. Times are tight and the fate of the economy still remains uncertain. Jobs and social security benefits are being lost everyday, so it is important to have a back-up plan. Financial experts advise that people have one savings accounts for emergencies.

Many people use their emergency savings account when they need extra money to go shopping, but that is no wise at all. An example of a true emergency are something like an unexpected medical expense. Another example of an emergency is something like one’s rent or mortgage being due a week before payday.

The second saving account should be for something like periodic expenses, such as paying one’s car insurance semi-annually. This account can even be used for things like vacations and gifts. It is important to have an savings account for periodic expenses because those things can put a hole in one’s budget.

Many people make good money, but making good money does not mean anything if one does not know how to save it. Having two savings accounts can help make it easier for people to stay on top of their finances and be prepared for any unexpected expenses.