Establish an Emergency Fund
By Members Choice Credit Union Staff
Life is what happens while you’re busy making other plans.
The unexpected comes for everyone, and the unanticipated expenses often set us back.
Why Save For Emergencies?
The Federal Reserve claims that 50 percent of Americans can’t cover an unexpected expense of only $400.
Having an emergency fund in place creates a financial buffer that keeps you afloat in a time of need, without having to rely on credit cards or high-interest loans.
At Members Choice Credit Union, we want to help you be prepared for whatever life throws your way. Here are a few ways you can easily set up an emergency savings account and grow it automatically.
1. Start with small regular deposits – Save as little as $20 – $100 a month. Then increase monthly deposits once you get used to saving regularly. Starting with smaller deposits keeps your emergency savings deposits from stressing your cash flow.
2. Cover three to six months. Your goal should be to set aside an amount in your emergency savings to cover three to six months of your expenses.
3. Put it back in. If you withdraw money from your emergency account, be sure and start making deposits to this account as soon as possible to cover other unexpected expenses that may arise.
4. Make it separate. Your emergency account should be separate from your regular savings account – much like a Christmas or vacation savings account – in order to keep this money in an account designated ONLY for unexpected expenses.
5. Automate your savings at Members Choice. We can help you set up regular deposits to your emergency savings fund. We offer several options including deposits made through payroll deduction or direct deposit. You can also designate regular transfers from your checking or money market account to your emergency savings account.
A variety of special savings accounts are available at Members Choice Credit Union. Ask us about setting up one for you today and be ready for the unexpected