From Hughes Federal Credit Union
A well-stocked emergency fund can quickly relieve you of unexpected bills, repairs, or emergencies. Here are a few things to keep in mind when saving for the unknown.
It Takes Time.
The truth is that building wealth takes time, but the trick is to be consistent. Set up an automatic transfer. Months from now, your efforts will begin to show in a sizable amount. Designate an account to be exclusively for your emergency savings.
What if Finances Are Tight?
Start by tracking every single expense then identify those that are necessary and those that are not. Next, determine expenses that can be trimmed. Call your service providers and revisit your current bills and services. You may be surprised to find out that you can save a significant amount simply by bundling services, downgrading to simple service packages or switching providers.
A $1,000 emergency can set you back several months. Bankrate’s January Financial Security Index revealed that just 4 in 10 U.S. adults (41%) would be able to cover the cost of a $1,000 car repair or emergency room visit using their savings. These findings are not surprising, most Americans will simply reach for their trusty credit cards.
How Can Hughes Help?
Consider opening a “You Name It” account with Hughes and start saving as much as you can. Name your account after something that keeps you motivated to save and enjoy 0.20% dividends. Check out our financial calculators in order to help reach your savings goals.