5 Steps to Start Your Emergency Fund

March 10, 2020

It’s easy to postpone the habit to save, but a solid plan is key to being ready for anything.

1. Start now.
The earlier and more you save, the more your money will grow. With compounding interest, you earn interest on what you save, as well as on the dividends generated.

2. Save what you can.
It doesn’t matter how much you save, just make sure to save consistently. Start with a comfortable amount (even $10 or $20 per paycheck), then slowly increase it. Ultimately, if you can put 10 percent of your paycheck into savings, you should be in great shape.

3. Make it automatic.
Use automated transfers to get in the habit of saving. Another option is to have your employer directly deposit a set amount into savings from your paycheck.

4. Plan ahead.
Open separate accounts for specific savings goals, such as vacations or holiday shopping. By putting money in accounts designated for specific goals, you are less likely to use the funds for other purposes.

5. Increase your financial knowledge.
Knowledge is power. Take advantage of our Dollars & Sense blog and the FDIC Financial Education Center.


This content is for informational purposes only. Readers should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific advice from their own counsel.