You can save money through an automated savings or emergency fund.
Automated savings involve automatically transferring money from a checking to a savings or investment account on a set schedule.
Key benefits include:
- Set and forget: Transfers happen without needing reminders.
- Goal-oriented: Helps achieve specific savings goals.
- Improved habits: Encourages disciplined financial management.
- Flexibility: Can adjust amounts and frequency as needed.
- Interest Accumulation: Savings can earn interest over time.
- Budgeting Integration: Works well with budgeting tools.
Consider your bank’s options or specialized apps for setting it up.
An emergency fund is a savings account for unexpected expenses like medical bills or job loss.
Key points include:
- Goal amount: Save three to six months’ worth of living expenses.
- Separate account: Keep it in a separate savings account to avoid temptation.
- Regular Contributions: Contribute consistently, even small amounts.
- Accessibility: Ensure it’s easy to access but not for non-emergencies.
- Review and adjust: Periodically check and adjust the fund as needed.
Having an emergency fund provides financial stability and peace of mind.
Chris Parrott is senior vice president/ regional marketing manager for FirstBank and can be reached at Chris.Parrott@firstbankonline.com.
