Maximizing Your Savings: Tips for Building an Emergency Fund

While most adults are familiar with the advice that they should have a savings account for emergencies, many people find it challenging to put back any money at all. Two in five Americans don’t have an emergency fund, and 40% say they couldn’t cover a $1,000 emergency expense with cash or savings. Yet, having emergency savings is a vital part of healthy financial well-being. It allows you to handle unexpected expenses without affecting your ability to pay your bills or put food on the table. Still, when you feel like you’re struggling to get from one paycheck to the next, it can be difficult to prioritize saving for an event that might occur in the future. Regardless of your budget, you can learn how to build an emergency fund. When you use lesser-known tactics for saving and cutting expenses, you can contribute to an emergency fund over time.

Setting Realistic Savings Goals

It’s unrealistic to expect to build your emergency fund with your next paycheck, or even in a month. Set yourself up for success from the start by setting small savings goals you can realistically achieve. Keeping a tally of how your regular contributions are contributing to your goal can encourage you to save more.

Automating Savings and Cutting Expenses

If you find it difficult to set aside money on your own, you can have it done automatically. Most employers provide direct deposit, which allows employees to automatically have paychecks deposited into an account. When you set up a savings account, you can have your chosen amount deposited automatically, so you never have to miss it. This approach will automatically help you cut unnecessary expenses when your checking account deposit decreases.

Choosing the Right Savings Account

Savings accounts often allow you to build more interest over time than checking accounts. Look for a savings account that offers a solid annual yield on your deposits. The best options have low or no fees, helping you grow your savings without extra costs.

Emergency Fund Calculators and Savings Strategies

Digital financial calculators are great for helping you determine how to build an emergency fund and cut unnecessary costs to improve your budget. A quick online search will turn up several digital calculators that use information you supply to help you determine how much to save. Our budget calculator can help you compare your income and expenses to give you more insight into how much you can save.

Once you get a better idea of what your budget looks like and how much you need to save for an effective emergency fund, try these savings strategies to help achieve your goals.

• Set a budget for bills and necessities.
• Include a small amount in your budget to occasionally treat yourself.
• Track your spending to identify unnecessary spending.
• Set up automatic deductions for your savings account.
• Pay off high-interest debt first.
• Delay feel-good purchases to determine if you really need them.

ACCU’s Tools for Managing Savings

At Alliance Catholic Credit Union (ACCU), we offer several tools to help members manage savings for various goals. Our digital financial calculators include:

• Auto Loan Calculator
• Mortgage Calculator
• Early Payoff Calculator
• Mortgage Affordability Calculator
• Budget Calculator

Learn How to Maximize Your Savings by Contacting Alliance Catholic Credit Union

Learning how to start an emergency fund can be challenging, but the results are well worth the effort. At Alliance Catholic Credit Union, we’re committed to helping members make their money go further. Contact us today to learn how we can help you maximize your savings with proven financial tools and tactics.

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