From suddenly falling in love and planning a wedding to unexpectedly losing your job, you’re bound to be surprised by something, some day. And every financial plan should include an emergency savings fund to help you handle that surprise.
How much do you need?
Financial planners typically suggest having three to six months of living expenses set aside. That’s based on the average time it takes to find a new job. During the recent recession, it took much longer, so some advisers are now suggesting more. If you have enough emergency funds to cover six to nine months of living expenses, an unexpected event is less likely to disrupt your long-term financial goals.
Saving a little can add up to a lot.
Set a goal for how much emergency savings you really need to get through a crisis and work toward that. Don’t stop saving for retirement or paying down credit cards, just save whatever you can.
Everyone can use a little help.
Try one of these Fifth Third savings tools to help you get there faster.
This simple savings account lets you set a goal, save at your own pace, and track your savings progress online. You’ll earn competitive interest on your savings–-to help build your nest egg or rainy day fund faster. Learn More About Fifth Third Goal Setter Savings
Earn unlimited points for the things you buy every day, like gas and groceries. Then redeem your points for things you would otherwise spend money on. This will free up some cash for your emergency savings fund. Always remember though, that credit cards charge interest. So be cautious about overusing your card(s) and adding to your overall debt. Learn More About Real Life Rewards Credit Card
Leaving 53.com
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