Save for the Unexpected
#Save4TheUnexpected, #EmergencySavings #ASW2021
If 2020 taught us anything, it’s that we have to be as prepared as possible for the unexpected. While we all have future savings goals, having an emergency fund is a whole other priority entirely. Emergency funds are vital to support present unaccounted for needs, like a broken-down vehicle, medical or dental bill, or even a last-minute family activity. That is why during the second day of America Saves 2021, we are focusing on motivating our members to prioritize building an emergency savings fund.
What is an emergency savings fund?
An emergency saving fund is a sum of money (usually the amount of one to three month’s living expenses) that is placed in a dedicated account that you will not access unless there is an emergency. Emergency fund amounts will look different for everyone. The key to successfully establishing an emergency fund is to consistently put away small scheduled portions of money that will grow over time.
Other than peace of mind, why do I need an emergency savings fund?
Emergency savings funds are the key difference between those who manage to stay afloat during hard times, and those who sink into debt. Not having emergency savings is one key reason that many individuals are forced to unexpectedly borrow money, rely on high-cost loans or increase their credit card balances.
To get started:
- Step into financial action by taking the America Saves pledge or re-pledging.
- Utilize the America Saves Spending and Savings tool to help yourself by getting a clear view of your finances. (This way you can realistically budget for your emergency savings fund.)
- Schedule consistent automatic contributions to an account that is not conveniently accessible. Take a look at Global’s Smart Savings Account to learn more.
- Take a deep breath of relief as you watch your emergency savings funds grow.