Life doesn’t always go the way you had planned.
Life happens - the furnace gives out. You need a couple of new tires for your car. A medical bill comes in that you weren’t expecting.
As shown in the pyramid, building an emergency fund of at least $1,000 should be the foundation of your "layers of savings". Build yourself a safety net now so that you are prepared for the unexpected. If you have to use the money for an small emergency, try to build your balance back up as soon as you can so you are always ready for the next one. Having a solid financial plan can give you peace of mind when life throws you a curve ball.
Here's how to begin:
- Open a savings account. Your rainy-day emergency fund should be accessible if you need it in a hurry, but not so accessible that you’re tempted to spend it for everyday expenses.
- Set up an automatic deposit or transfer. What you don’t see, you don’t miss—pay yourself first. Set up an amount to be deposited directly into your emergency fund from a paycheck or checking account. Your Tyndall representative can help you with this.
- Budget. You may need to start small in order to build up your emergency fund. If all you can begin with is $10 a week, then start there, but try to increase that amount a few months down the road. If you receive a windfall (tax refund? cash gift?), put a percentage of that money into the emergency fund.
- Check spending habits. Track your spending and decide where you can cut back in order to put more money into your emergency fund. Can you bring your own coffee from home instead of stopping each morning for a $4 latte? That’s an extra $20 a week for the fund.
- Tap the fund only for emergencies. Leave it alone and forget about it—until you really need it.
Stop in or contact our Call Center at 850-747-4300 (888-896-3255, toll-free) for more information.
Tyndall, the Official Credit Union of well, I didn’t see thatcoming.