“Hope for the best, prepare for the worst.”
As we go through life, circumstances present themselves that are impossible to predict. Death, divorce, illness, and natural disasters all come as a shock to people every day. These are not always the most pleasant situations, but they must be dealt with in a rational and thought out manner. One of the best ways to prepare for a financial crisis is by having an emergency fund set up and ready to turn to at a moment’s notice. First Security State Bank has eight ways to build an emergency fund in the case of a financial crisis to help you get started:
- Start a savings account with the intention of saving up to three months’ worth of living expenses. An emergency fund with three months of support will allow you to get your feet on the ground in the event something terrible does happen.
- To start saving successfully, create a budget to track where your money is going and coming from. A budget will not only force you to spend less, but it will draw your attention to where your hard earned money is going and possible areas where you could save more.
- Organize your bills, banks statements, pay slips, and any other financial documents. Put them in a filing cabinet for easy access to ensure you make all payments on time.
- When going through your bills, take note of areas where expenses can be cut. Get your monthly expenses as low as possible and put the remaining money into the emergency fund.
- Do the little things that add up. Turn off your air conditioning when you are not home and shut off lights in unused rooms.
- Take time to plan out healthy meals to make at home instead of eating out. Pinterest offers fun and creative meal ideas that can be made for one or a family of five. Pack lunches for work or school and take coffee from home.
- Keep up on home and car maintenance. It’s cheaper to replace one part then an entire car, and to replace a couple boards rather than have the entire house tented for termites.
- Keep your health in check. By eating healthy and exercising now, you will avoid health issues down the road that can be dangerous and expensive.
These are all ways to save that can be incorporated into your everyday life. By taking action now to build an emergency fund, you will be better prepared when the unexpected occurs. First Security State Bank believes it is never too late to start smart saving habits. Serving the Cedar Falls and Evansdale areas, we are here for you!