How much to save for life’s unexpected emergencies
Life happens.
When it does, don’t let an unexpected medical bill or loss of a job leave you struggling financially. Having an emergency fund is an important safety net that allows you to stay financially protected. But how much do you need to save?
It can be challenging to determine the amount of money someone should have saved up in case of a life emergency, as the cost of emergencies can vary greatly depending on the situation. However, financial experts generally recommend having at least three to six months of living expenses in an emergency fund.
Calculating how much you need in an emergency fund is easy
The sooner you start saving for emergencies, the better. To determine how much you need saved for your living situation, list your monthly living expenses, including rent or mortgage payments, utilities, groceries, transportation costs, and any other necessary expenses. Multiply this amount by three to six to determine the amount you should have saved in your emergency fund.
For example, if your monthly living expenses total $3,000, you should aim to have between $9,000 and $18,000 in your emergency fund.
It is also important to consider any additional expenses that may arise during a life emergency, such as medical bills or car repairs. In these cases, it may be necessary to have extra savings set aside specifically for these expenses.
Begin saving at 1st Advantage Bank
It is important to start saving for an emergency fund as soon as possible, even if you can only contribute a small amount each month. Consider setting up automatic transfers from your checking account to your emergency fund to ensure consistent savings.
At 1st Advantage Bank, we make it easy to build your emergency savings with our Save and Invest options. You have what you need to start saving, from free savings accounts to money market accounts to CDs and IRAs.
Find the best account for your savings needs
Contact 1st Advantage Bank today
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