What
Is An Emergency Fund?
An emergency fund is money that you’ve saved
up for the purpose of helping you maintain your normal life through the
emergencies that life hands you.
When is it okay to use it?
- When you lose your job
- When an appliance breaks down
- Medical emergency
- When a car needs repairs
When is it
NOT okay to use it?
- Going on a shopping spree
- Buying a new TV
- Going on vacation
- Buying a new car
How to start up an Emergency
Fund…
A common mistake made by many who plan to start an emergency fund
is that they set their goal too high and often get discouraged when they
realize that it will take longer than they expected to reach it.
Set your initial goal low!
Set a goal that you would be able to reach in just a few months rather than a few years. Take into consideration your financial situation and determine how much you can afford to put into your emergency fund each week. Anything is better than nothing at all; the important thing is to get started today!
Set a goal that you would be able to reach in just a few months rather than a few years. Take into consideration your financial situation and determine how much you can afford to put into your emergency fund each week. Anything is better than nothing at all; the important thing is to get started today!
Where to save your
emergency fund?
After you decide what amount you want to start off with, think about where you want to keep your money. Since it is an emergency fund it would be smart to keep it somewhere where you can get access to it easily. We can help! You can open up a savings account, money market account or short-term certificates here at Horizon Community Credit Union. Any of these accounts will give you easy access to your money, while earning you some interest!
After you decide what amount you want to start off with, think about where you want to keep your money. Since it is an emergency fund it would be smart to keep it somewhere where you can get access to it easily. We can help! You can open up a savings account, money market account or short-term certificates here at Horizon Community Credit Union. Any of these accounts will give you easy access to your money, while earning you some interest!
How often should you
deposit money into your emergency fund?
When deciding how much to start putting into your savings fund, try to make sure you are able to deposit that amount weekly. For example, $40 a week would get you to $500 in three months! It doesn’t have to be $40 a week though; it can be what you can afford and make sure it challenges you a bit, just not something impossible.
When deciding how much to start putting into your savings fund, try to make sure you are able to deposit that amount weekly. For example, $40 a week would get you to $500 in three months! It doesn’t have to be $40 a week though; it can be what you can afford and make sure it challenges you a bit, just not something impossible.
Don’t have the time to
stop in every week?
Sometimes life gets a little busy and you may not find the time to be stopping by every week to deposit your weekly addition to your emergency fund. It happens to all of us! Something that Horizon Community Credit Union offers that you could find useful would be reoccurring transfers. When you open up an account you can set a reoccurring transfer to transfer your specific amount every week without you having to worry about stopping in! And when you reach your goal you can choose to stop the reoccurring transfer. Or if you are feeling ambitious you could set a higher goal and continue putting money into your emergency fund!
Sometimes life gets a little busy and you may not find the time to be stopping by every week to deposit your weekly addition to your emergency fund. It happens to all of us! Something that Horizon Community Credit Union offers that you could find useful would be reoccurring transfers. When you open up an account you can set a reoccurring transfer to transfer your specific amount every week without you having to worry about stopping in! And when you reach your goal you can choose to stop the reoccurring transfer. Or if you are feeling ambitious you could set a higher goal and continue putting money into your emergency fund!
How to keep track of your
emergency fund?
You can use our online banking and keep track of how much your emergency fund is growing! It’s fast and easy and you can use it on your computer at home or on the go with your phone!
You can use our online banking and keep track of how much your emergency fund is growing! It’s fast and easy and you can use it on your computer at home or on the go with your phone!
Saving money shouldn’t be as hard as it seems. With the help of
the accounts and services Horizon Community Credit Union offers it is
convenient, reliable and safe!
Post by: Karla C.
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