What an Emergency Fund Is—and Why You Need One | St. Johns Bank
At one time or another we have all lived the phrase, When it rains, it pours. Doesn’t it always seem like when one appliance breaks, another expensive issue isn’t far behind?
While you can’t control everything, there is something that you can be in control of—your emergency fund!
Our team at St. Johns Bank wants to share some insight about why such a fund is vitally important, along with how you can begin setting your own up.
Why Is an Emergency Fund Important?
While we hope emergencies don’t happen in our lives, they do—and will. From the brakes going out in your car to a refrigerator breaking to a medical emergency arising, a number of high-cost problems can appear without warning. That’s why having money set aside to cover unexpected expenses is important.
Not only will an emergency fund allow you to have the funds needed when the unexpected occurs, but you will also be at a lower risk of falling into debt due to putting the emergency costs on a credit card or taking out a high-interest loan.
Although some financial experts might suggest having an emergency fund that covers a year of expenses, it’s totally fine to start smaller and build up to the amount you need for security.
Start Saving for Your Emergency Fund Today
Let’s take a look at some ways you can start building your emergency fund ASAP!
For starters, take advantage of the back-to-school season. Do you have school clothes that your children can no longer wear, or an extra backpack or lunchbox lying around the house? Host a yard sale to declutter your home while also making some money for your emergency fund!
Second, take a good look at your expenses to see if any cuts can be made. Are you paying for cable but are never home to watch TV? Has it been awhile since you shopped around for insurance? Many times your monthly payments can be lowered just by making a phone call!
Finally, some people get a second job to help fund their emergency account. Are you really knowledgeable in a subject? Consider tutoring! Babysitting, dog walking and cleaning are other ways you can make money on the side without it interfering with your main job.
Are you looking for a place to put your emergency fund? Contact the team at St. Johns Bank today to learn about our various savings account options!