Start Your Emergency Fund
Each year is a new opportunity to revisit your savings goals.
A 2024 Bankrate survey revealed that 62% of Americans feel behind on their emergency savings. That’s why we’re going to provide some tips for you to start your emergency fund.
No one is immune to unpredictable events, but with these tips, you can be better prepared for them.
Tips for Building Your Emergency Fund
Without further ado, here are five tips for you to start your emergency fund:
Keep Your Emergency Fund Separate
You should open a separate account for your emergency fund. If you keep it in your general savings account or in your checking account, it may be too easy to spend that money.
Make Your Money Work for You
It’s fine to open a standard savings account for your emergency fund. But your savings will grow even faster if you put that money into an account that pays a higher interest rate. Consider money market accounts or, if you know you won’t need to touch your money for a while, a certificate of deposit (CD).
Contribute Regularly
To make sure you hit your goals, it’s important to contribute to your emergency fund regularly. Start setting a set amount or percentage of your income to contribute each month. To make it easier, set up automatic transfers to your emergency fund.
Set Realistic Goals
Your goal should be to have three to six months of savings on hand in case of an emergency. But that’s not going to happen overnight. Start with small, realistic goals and work your way up as you are able. A small start is still a start!
Don’t Touch Those Funds!
Only tap into your emergency fund when an emergency arises. This could be losing your job, a broken down car, a medical bill or a home repair. If you do tap into that account, replace the money in your emergency fund as soon as possible.
Start Saving Today
Unexpected expenses can arise any time. But with an emergency fund, you can be better prepared for them.
At Veridian Credit Union, we have the resources to help you meet your savings goals. Click below to visit our Financial Education page today!
