Three Tips to Building Your Emergency Savings

Trying to stay on top of your finances and budgeting for monthly expenses can be stressful, especially when unexpected car repairs, job related issues, or natural disasters occur. We want to make sure that you are fully prepared in case any unexpected life altering events happen and fortunately there’s a way you can do so.

Starting to build your emergency savings can help you when you find yourself in a bind. Emergency savings, or an emergency fund, allows you to build a savings buffer, so that you do not have to worry about how to pay for unforeseen financial emergencies.

If you don’t know where to start with saving for emergencies, here are a few tips to help get you started.

Create a budget.

Creating a budget helps you estimate how much you are spending. You can adjust a budget to show how much you are spending on a monthly or weekly basis. This helps you visualize where your money is going and how much of your income you have left over after paying bills.

Having a budget can also help you determine wants vs. needs. Determining needs over wants can free up more money from things that aren’t necessities.

Determine how much to put into your emergency savings.

Money experts recommend having three to six months’ worth of expenses saved in your emergency savings. However, once a budget has been created and you see how much extra income you have, you can decide how much is reasonable to put into an emergency fund.

Don’t be discouraged if it seems like you aren’t saving enough initially. Everyone’s situation may vary and as you become more comfortable saving, adjustments can be made.

Determine where to keep your emergency fund.

Figuring out where to keep your emergency savings is completely up to you, but make sure to keep it in a place that is easily accessible. A few options for savings are a savings account, checking account, or certificate of deposit.

No matter which option you choose, we have associates ready and available to help get you started. Find your local branch today and start getting your savings in order.

Want to continue learning how to make your money go further? Take our interactive course on building emergency savings. In this module, you will find practical ways to save.

Other Resources

Share:

Sign up for our newsletter and be the first to know about new tips, insights, and products from First Bank.

First Bank may use this email address to contact you about products, services, and promotions.

You may be interested in...

What is an Unsecured Personal Loan? If you need help covering unexpected expenses, you may be asking the question, “What is an unsecured personal loan?” An unsecured personal loan is a loan given out without the involvement of any collateral. It is based solely on the trust that the borrower will pay back the money under the terms of the loan. Unsecured vs. Secured Personal Loans According to Investopedia: “A loan that is issued and supported only by the borrower’s creditworthiness, rather than by a type of collateral. An unsecured loan is one that is obtained without the use of property as collateral for the loan. Borrowers generally must have high credit ratings to be approved for an unsecured loan.” This is different from a secured loan, where an item of collateral such as a vehicle or piece of property is put down to secure the loan. If you fail to repay the loan, the lender takes the item of collateral. What do Unsecured Personal Loans Cover? Most personal loans are taken out for things like costly medical procedures, home renovations, and vehicle purchases. First Bank offers a personal credit line* that may or may not require any collateral. Typically, the better your credit history, the better your chances of qualifying for an unsecured personal loan. Because you’re not risking the loss of any collateral, unsecured personal loans typically come with higher interest rates than secured loans. Contact First Bank Today If you need an unsecured personal loan, seek out a First Bank location and speak to one of our friendly associates about getting the money you need. *Loans subject to credit approval. ——— Sources: Investopedia: http://www.investopedia.com/terms/u/unsecuredloan.asp#ixzz3sGyigwlj 2 min read

Construction tools and piping on top of blueprints

New Construction vs. Existing Home: Points to Ponder if you’re weighing the pros and cons of buying a new versus an existing home, you won’t make a decision based on aggregate data. You’ll be comparing specific options. Here are some factors to consider. 3 min read

Savings Account Interest Rates in North Carolina Whether you’re saving for retirement or starting a college fund, having the right savings account can help you reach your financial goals. With some of the most competitive savings account interest rates in North Carolina, First Bank offers a variety of options to meet your financial needs. Types of Savings Accounts at First Bank When you’re comparing interest rates, it’s important to understand which accounts offer the best rates. At First Bank, we offer six different savings accounts with varying interest rates: Everywhere Savings—For simple savings at a competitive interest rate, this account offers free online and mobile banking, account alerts, and free eStatements. MyFirst Savings—If you’re under 18 and ready to start saving, consider opening a MyFirst Savings account. You only need a $10 deposit to open the account and don’t have to worry about a minimum balance or maintenance fees. Money Market—With higher interest rates and instant access, our money market account allows you to have six free withdrawals per month, free online and mobile banking, free eStatements, and more. CDs—If you don’t need immediate access to funds, this option provides flexible rates and guaranteed rates of return. CDs typically offer higher interest rates than savings and money market accounts, making them a great investment option. IRAs—At First Bank, we offer a variety of IRA options for your long-term retirement plans including traditional, Roth, and SEP IRAs. Talk to one of our banking experts about the different rates you’ll receive if you choose to open up an IRA. Health Savings Accounts (HSA)—For a great way to save on current and future medical expenses, consider opening a health savings account. This account allows you to manage health care spending and earn tax-advantaged savings. Use our Account Comparison Chart to decide which savings account is best for you. Get Competitive Interest Rates at First Bank Interest rates will vary depending on which savings account you choose. Regardless of the type of savings account you open, we want to make sure you’re getting a good rate. Consult with one of our banking experts at your nearest First Bank to compare interest rates. Open a Savings Account Today Visit one of our North Carolina branches and talk to a financial expert about getting 3 min read

The Best Personal Banking Services for You Finding the best personal banking services for your financial needs doesn’t need to be difficult. The factors that go into evaluating available options can include convenience, fees, and interest rates. It’s essential for you to consider how important each of these items is to you, or if there are other factors you need to consider. When thinking through your needs, know that your local First Bank* personal banking services can provide you with plenty of convenience and even more peace of mind. What is Personal Banking? Personal banking refers to all the services banks design and offer to individual consumers rather than businesses. These services include checking and savings accounts, credit and debit cards, certificates of deposit (CDs), loans, and more. You should consider these top 5 factors for your personal banking needs: Fees and Minimum Balance — Before opening an account at any bank, it’s critical to be fully aware of fees (e.g. monthly, transaction, annual). Some banks have hidden fees that could creep up on you when you least expect it. If a bank doesn’t reimburse ATM fees, make sure there are enough no-fee ATMS in your area. Learn how to Keep It Fee Free** at First Bank. Interest Rate — Keep an eye out for banks that offer high-yield checking accounts. These kind of accounts provide you with higher interest rates so you have the option to earn interest on both savings and checking accounts. Convenience — Online banking is the most convenient with its 24/7 web-based access to your finances. But if you prefer to visit the bank, you’ll want to find one with nearby locations and convenient hours too. First Bank has locations in North Carolina and South Carolina and it’s easy to find your closest branch location. Service and Perks — Customer service can make or break your experience with a bank. It’s important for you to feel like calling your bank will be productive and pleasant. Find out if a bank offers extra services that could be beneficial for you, including free checks, a rewards program, or special accounts for kids. Easy Online and Mobile Banking — Online and mobile banking are great for managing your finances wherever and whenever you need to. This 4 min read

Three Tips to Building Your Emergency Savings

Authors

Ready to talk to an expert?

Ready to talk to an expert?

Authors

You may be interested in...