Tips for Creating and Building an Emergency Savings

You never know how much you need emergency savings until you’re hit with expenses that don’t fit your budget. Whether it be medical bills, car repairs, a new appliance, or legal fees, the list of unexpected costs is endless, but doesn’t have to be a financial burden.

The best way to prepare for these and other surprise expenses is creating and building emergency savings. That’s what we focus on here, discussing creating an emergency savings account, then looking at helpful strategies for saving.

Emergency Savings Accounts

Before you start saving, you need an account where you can safely keep money. A regular savings account is an option as is a money market account. Both offer convenient access and pay interest on your funds saved.

At AECU, our Money Market Account lets you earn higher interest as your balance grows. When the balance is $1,000 or higher, interest is compounded daily and paid monthly. Your balance grows, adding to any deposits you make to help you reach the savings goal.

Building Emergency Savings

Step one is choosing your emergency savings account. Step two is putting the savings plan in action and building an emergency nest egg.

How you fund emergency savings is your call; the key is to make deposits consistently until you reach your goal. There are a few easy ways to do it. If you receive direct deposit from your employer, have a percentage of each payment deposited in your emergency savings account. You can also schedule automatic transfers from one of your other accounts at the Credit Union to the emergency savings account.

However you choose to fund the account, make deposits that don’t stretch you thin but help you reach the savings goal in a reasonable period of time. Need help figuring it all it? Stop in or give us a call. We can help you calculate how much you can comfortably save each month and a timeframe for your savings goal.

Open a Savings

Emergency savings can be a necessity when big expenses hit. To get started on creating and building an emergency savings, call us today at (800) 325-9905, or send us an email through our contact form. We look forward to helping you save!

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