(NewsSpace.com) – When an unexpected crisis strikes, few things are as important as an emergency fund. Being prepared can mean the difference between staying above water and drowning. The following are three easy steps anyone can take to get their fund started and keep it growing.
1. Set a Goal
Financial experts recommend people set aside at least enough money to cover three months’ worth of expenses. However, the larger the fund is, the bigger cushion families have in case an unexpected problem occurs.
2. Set Up Automatic Transfers
One of the easiest ways to fund the emergency account is by setting up auto transfers that happen consistently. For example, if someone is paid weekly, they might want to subtract $25 or $50 from their paycheck each time they receive their check.
3. Add Extra Funds When Possible
Another way to maximize the account is by adding any extra funds that are received throughout the year. If someone is trying to reach their emergency fund goal and their employer just gave them a bonus or maybe they received money from a relative for their birthday, tucking it away into the savings account will help them reach their target faster.
As a bonus, anyone who is beginning their emergency fund journey should find a bank or credit union that offers interest-bearing savings accounts. That allows their money to earn a small amount of interest while just sitting in the account. And remember, any dollar added to the savings fund is a dollar that wasn’t there before — even small additions matter.
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