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.