4 Savings Accounts Almost Everyone Should Have

You should have a savings account. In fact, you should have several. Your savings accounts should be separate from your checking account. They should also be earmarked for particular purposes so you will have the money available to you when you need it.

Not sure what kind of savings accounts you should have? Here are four types of accounts just about everyone should consider opening.

1. An emergency fund

Emergencies happen. In fact, older data from Pew Charitable Trusts found as many as 60% of all households had experienced a financial shock over the prior 12 months. These shocks included things like major home or car repairs, divorce, separation or widowhood, a hospital visit, a pay cut, or another large unplanned expense.

Without an emergency fund, coming up with the money for these costs could mean borrowing by way of credit cards or personal loans. And once you borrow, you'll be stuck with monthly payments that will make living within your means harder. To make sure this doesn't happen to you, aim to save three to six months of living expenses in a savings account.

2. A car and/or home maintenance fund

AAA recommends budgeting about $600 annually or $50 monthly for car maintenance. The Bureau of Labor Statistics also reports mean annual costs of home maintenance, repairs and insurance totals $2,335 annually among all consumers.

You may not spend this much every single year. But you could face a really big expense one year, such as a new transmission or new roof. If you set money aside regularly in savings, you'll be ready when this big expense comes your way.

Without a dedicated account for home or car maintenance, you could be forced to drain your emergency fund (leaving you vulnerable if another disaster strikes) or could end up in debt. The reality is, car and home maintenance aren't really "unexpected" expenses you should be relying on your emergency fund for because you can predict these costs will happen even if you can't predict exactly when. So plan ahead and start saving for those items specifically before you need the funds.

3. A vacation fund

Most people enjoy taking vacations, but they can be expensive. If you want to travel, you should be saving for it. Otherwise, you will have to borrow in order to be able to go on a trip since you probably can't fund it out of a single paycheck. Borrowing only adds to the cost of your vacation, and who wants to make monthly payments for a trip well after it's over?

By saving for vacations, you can enjoy them guilt-free without interfering with other financial goals.

4. A big-purchases fund

Finally, you're likely to need to make some kind of big purchase at some point in your life. This might be a car, a home, some furniture, a new phone or computer, or a host of other things you can't afford to just pay for out of your bank account.

Having savings accounts dedicated to the purchases you want to make will enable you to buy what you want and need without incurring interest costs or committing to monthly expenses for financing.

If you don't have any of these funds, it's worth opening them ASAP. If you start saving for these things, you'll make managing your finances a lot easier.