You most likely have a plan for the big financial milestones
in life: buying a house, starting a family, big trips, these are the things we
can expect and prepare for. What's harder to prepare for are the unexpected adventures
in between: the new water heater, the car trouble or the broken arm.
While you can't plan for the surprises of life, you can prepare
for them so when something happens, and it always does, it does not have to
uproot your life and drain your wallet.
Most financial experts will tell you the importance of an
emergency fund, they are not wrong. Emergency funds are often easier said than done,
with the rising cost of nearly everything, trying to pay off debt, and planning
for the fun things in life, it can be challenging to feel like you have anything
left to store away.
While it's easy to postpone these savings, contributing even
a minimal amount can reduce the financial nightmare in the instance of an
ill-timed event. Most experts suggest setting aside enough emergency savings to
cover three months of expenses - but getting started with any amount will help.
You can start with a mini goal to cover two weeks, or one month of expenses,
and build from there.
Take a look at your monthly spending, consider where you can
ease back on impulsive purchases such as dining out, cutting back on
subscriptions, and other "convenience costs" that add up quickly. These
adjustments can be a great way to start building that emergency fund.
Another way to help grow your emergency fund is to store
those funds in an interest-bearing savings account. With an emergency fund
every bit counts and the interest you'll earn in these accounts will only add
to the cushion. At Telhio Credit Union there are multiple account options to fit
your needs, from a traditional
savings account to a high interest earning Money Market, Telhio has
an account to help reach your financial goals.
An emergency fund amount will differ per person or family.
For larger families or those with at-risk situations, such as medical
conditions or job uncertainties, a more substantial fund may be necessary to
combat frequent incidents. Luckily, no one ever complained about saving too
much money. You can always pause or reduce savings to your emergency fund at
your discretion. As with any financial planning, the key is to find what works for
your situation and your family.
Need help tracking your spending and saving? Meet with a
Telhio Relationship Banker to discuss your goals and plan for the unexpected
future. Click here to
schedule an appointment.
