It’s always great to have extra savings- but have you considered setting aside cash for a dedicated emergency fund?
For those unforeseen expenses, an emergency fund can help protect you when surprising circumstances come your way. Set yourself up for success by being ready for the unexpected!
What is an emergency fund?
A source of ready cash in the event of surprising costs or expenses (aka- some money you stored away, “just in case”). When an unanticipated accident or costly event happens, you can be ready to face uncertainty because you planned ahead and won’t need to take on debt because of the incident.
Why do I need one?
These funds are vital if something happens unexpectedly. It is recommended that an emergency fund last you approximately 3-6 months without any source of income to sustain yourself. Although, after the pandemic, some would suggest closer to a year! The precise number of what you need to save up depends on your personal lifestyle, expenses and the size of your family. Someone who is single may be comfortable with 3 months of stored income, but the sole breadwinner of a household might need closer to a year.
How to build an emergency fund
Choose an amount you’re comfortable setting aside every month or every paycheck. Tax refunds are a great way to help build this fund too (we know it’s tempting to spend). These small contributions will continue to add up and you can rest assured that you are prepared for the unexpected.
Global’s Smart Savings snd Smart Checking accounts are other easy ways to add money to you fund.
Looking for more advice on savings?
Global can help! Click here and get connected with a financial coach to personalize a plan that suits your needs.
