HM Emergency Savings Article
Emergency Savings: Saving Your Future Self
Things are going great…for now. But are you prepared to take care of yourself and your family if disaster strikes? No one wants to think about bad things happening in the future. We don’t like to think about it either, but are you prepared when something does happen? Putting a little aside every month for your emergency savings account is a great habit to form.
This will provide a comforting nest egg that you can dip into when the car breaks down unexpectedly.
Having a dedicated emergency savings account saves you from dipping into everyday accounts. It’s great practice. So, how do you manage your savings? Don’t worry, Affinity Bank has your back.
Know Your Income
It’s surprising how many of us don’t know exactly how much money is coming into our household every month. This is a precarious financial position to put yourself in. Don’t live with the unnecessary risk. Figure out exactly how much money is coming into your accounts every month.
Track Your Spending
So, you know how much is coming in, now it’s time to figure out how much money is going out of your household every month. Do an accounting of all your regular bills. Then, estimate how much you spend on groceries, eating out, etc… every month and total it up.
Set a Monthly Savings Goal
Time to muscle through the hard part. Compare how much you are spending to your monthly income. How much money is left over every month? Are there things you are spending on that you could do less or even live without? Now is the time to make those cuts.
Making coffee at home is strangely rewarding, after all. Now you know how much you have leftover. From there, make a manageable decision about how much you can put into a savings account every month. Even if it is as little as $5, we promise it adds up faster than you think.
Choosing Your Savings Account
How do you choose the best savings account for emergencies? Get in touch with us and set up an accessible savings account that will be your emergency fund. We’ve got some great options at Affinity that are catered to your needs.
Make Saving Habitual
You’ve done the hard part, now all you have to do is follow through. Try an automatic funds transfer into your emergency savings account every month. This is an easy way to maintain this good habit. If you prefer to do it manually, mark your calendar. Be sure to put your goal savings amount into that emergency fund like clockwork.
Hold Yourself Accountable
Even if you chose to set up an automatic funds transfer, don’t forget to check your progress along the way. Check your bank statements every month. Bet you’ll be pleasantly surprised at how much you can save in just a few months.
Contact Affinity Bank Today
Give yourself a pat on the back for creating your own little pot of gold.
Remember, the difference between emergency vs savings for other things. This account is for emergencies only, so stay strong and don’t use it for tickets to an event, or a Michelin star dinner. You’ll be grateful you didn’t when your water heater starts leaking, trust us.
Have more banking questions for us? Contact Affinity Bank today!