Creating a structured savings plan is one thing that can set apart the financial dreamers from the financial doers! By setting strict guidelines to your goal, and ensuring the correct follow through with a backed up savings plan, you can be certain of your success in accomplishing your future achievement! One of the biggest obstacles in these plans is the unforeseen, and there is a way to manage even that. Using a well-rounded emergency fund can ensure that you don’t dip into saved funds for unexpected costs such as auto repairs, or medical emergencies. Want to get started setting up your emergency fund today? Follow these simple steps and you’ll be on your way to financial success!
- Open a dedicated savings account.
- Deposit Funds each month without withdrawing anything.
- Start by saving $1000.
– Next save 3 months’ worth of income and expenses.
– Finally maintain 6 months’ worth of income and expenses.
The reason you have this fund is simple, to prepare for the unprepareable. Whether it’s an unanticipated job loss, a costly home repair, or other unplanned expenses, your emergency fund can help you stay afloat when the waters get rough.
The main objective of this account is to have it work for you and your needs! By specifically determining what you define as an emergency (job loss, vet bills, auto repairs) and what doesn’t (last minute birthday gift, broken TV, new clothes) you can generate a structured list to know when you feel safe using those funds, and when perhaps its best to leave them untouched. The idea of the emergency fund is to have it when you need it. By gaining access easily via checkbook or debit card, you can make use of the account more quickly when the unexpected strikes.
By generating your own emergency fund you can continue to save for milestones and pay bills, without worrying about the what if’s that lie along the road to the future. Get started with your emergency account today at First Security State Bank, we’ll help you get to your next savings goal!
Ensure your financial future with tips from First Security State Bank
“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!