When it comes to starting your emergency fund you have multiple options Ideally you can make it a step-by-step process. We know that many persons do not have an income at the moment but this won’t last forever so you can employ this strategy when you are earning once more.
1. Save $500.00
A $500.00 emergency can come up very easily, a blown tire or a doctor’s visit at a private clinic $500.00 can be sufficient without having to borrow, this can be saved by putting aside all at one if you can afford it or in small weekly increments of $100.00. Keep this money in cash because putting it into a bank account it will slowly decrease over time with bank charges and fees.
2. Save $1000.00
One thousand dollars can cover a lot more. it can fix small damages to your car or replace a part. Buy groceries or emergency supplies all without having to go into debt to cover. Also keep this value in cash readily available and away from fees and charges.
3. Save One month’s salary
It’s advisable to move on to this stage when you have little to no debt otherwise it will be very difficult. At this point it won’t be advisable to keep in cash. An account with Lambeau Credit union would provide you with a deposit account with 0 fees and no charges also you benefit from a 1% interest rate! So not only is your money safe it grows! This can hold you over in a time of prolonged sickness, If you’re transitioning between jobs etc. Click here for more information.
4. Save 3 months of your expenses
This is your final step in building a resilient emergency fund. We have seen our government in steps to protect the population shut down entire industries for months at a time this is where an emergency fund such as this comes in handy to cover your extended period at home. Again, its unsafe to keep this amount in cash so we will advise you to put this in a deposit account that gains interest.
There you have it a step-by-step approach to set up a resilient emergency fund we know this would take diligence and discipline but we believe you can accomplish this in no time. Become a member today!