The unexpected happens to all of us. A car needs repaired, your refrigerator stops working, you need dental work, or a home repair needs to be taken care of right away.
It is important to prepare for these “Uh Oh’s” before they happen.
Step 1
Set up a separate account that is specifically for your emergency savings.
Having a separate account that is not linked to a debit card will keep you from being tempted to spend. Consider this your out of sight, out of mind savings and only withdrawal when absolutely necessary.
Step 2
Choose how often and how much.
Will you want the funds to be added weekly? Monthly? Choose an amount that feels comfortable to you. You want your emergency savings to account to grow, but you also don't want to have to take money out for routine monthly expenses. Plan to only touch this account in case of an actual emergency.
Step 3:
Automate!
You can set up an automatic transfer from your checking to savings or talk to your employer about having a portion of your check direct deposit into your savings account. Either way, you will build your emergency savings without even thinking about it!
The goal is to be prepared for when life happens.