Medical expenses, home and car repairs or losing your job can happen at any time. An emergency fund can be a safety net to help you cover these unexpected expenses.
Saving for an emergency fund takes time and perseverance. Follow these seven steps to create an emergency fund that makes sense for your budget and savings goals.
- Choose your account. A regular savings account or Goal Savings account are ideal for helping you achieve your short- and long-term goals. These accounts give you easy access to your money so you can use it when those unplanned expenses occur.
- Create your budget. This exercise will help you track your spending habits as well as determine how much you can save and where you could potentially trim expenses. Review our four-step plan to help you create your monthly budget.
- Establish your savings goals. Use your budget to help guide you. You should save enough to cover approximately three to six months of your expenses. Once you establish your overall savings goals, determine how much you will save each month.
- Set up an automatic transfer. Hold yourself accountable. Set up one-time monthly transfers to your emergency fund by using our mobile app or online banking 24 hours a day, seven days a week.
- If possible, increase your transfer amount. Even the slightest increase can help you reach your savings goals faster. Consider transferring extra funds you may receive from a raise, bonus, or monetary gift.
- Review and adjust as needed. Check in on your savings goals every three months and consider readjusting if needed. If an unexpected expense forces you to dip into your savings, you may need to readjust your goals and/or deposit amount.
- Do not stop once you have reached the finish line. What upcoming moments or milestones in your life require a savings plan? Once you have established your emergency fund, consider saving for the answer to that question.
Need help planning out your savings goals? Contact your free Members 1st Concierge, your go-to financial expert. It is their job to help you navigate the details of spending, saving and planning for the future. Best of all, they're here whenever you need them in the Members 1st mobile app and online banking. What are you waiting for? Open your account online in just a few minutes.