Build Your Emergency Fund

There is no better time to start saving for the unexpected than today! Whether you encounter a job loss, medical bills, or other major expense, having an emergency fund can help keep you afloat during your time of need.

An emergency fund is the money saved for such events to cover the current loss of income, to pay for any incurred expenses from an emergency, and to help you recover quickly from it.

Build-Your-Emergency-Fund

It is important that you can have quick access to your emergency fund. Wondering where is the best place to allocate your money? A savings account will keep your money safe while providing you with quick access to withdraw your money when needed.

Now that you know the importance of an emergency fund, it is time for you to create your own emergency fund! Here are a few things you should consider:

  • Create a monthly goal: Each month set aside the amount that you wish to save. The amount that you set aside will vary based on your individual income. and other commitments that need to be paid. Consider taking a small percentage from your paycheck and increasing the percentage every month if your budget allows.
  • File your tax: The refund you receive after you have filed your taxes can be deposited into your emergency fund.
  • Stop over spending: Be sure to track your budget. If you see yourself overspending in one area it is time to reevaluate how you are spending your money, because it can be taking away from your emergency fund.
  • Second job: If you have a few extra hours during the week consider taking on another job. The extra income can help grow your emergency fund.

You now have the background knowledge to start building your own emergency fund! Find your Community Financial Service Centers, CFSC, near you!

“Make preparations in advance – you never have trouble if you are prepared for it.” – Theodore Roosevelt