Starting an Emergency Fund…
Life is full of the unexpected…last month your dog needed surgery, last week your car blew out a tire and just yesterday your iPhone died. How are you going to pay for all these things if you don’t have a little extra tucked away for emergencies or just “life”? It is easier than you think to start an emergency fund.
- Decide how much you would like to save - Typically, you should save three months of your salary. It might seem like a hefty sum of money but it is not a short-term goal, it is a long-term goal that will take time to achieve.
- Evaluate your budget - Look into what you are currently spending and see what can be reduced or cut and make saving a priority.
- Open an account - It is best to put this money into a separate account so it won’t get mixed in with your regular spending account. Open an additonal AgFed Savings account or an AgFed Money Market account, the money will be safe and easy to access at your Credit Union and the more you save the more interest you will earn.
- Automate your savings - Once you have calculated how much you can afford to save, have that money automatically transferred into your emergency fund account.
Now that you are all set up with an emergency fund, it is important to stick to your plan. Next time you get thrown a surprise financial curve ball, you will be glad you have that. As always, AgFed is here to be your financial partner – contact us if you need help setting up a budget.