Stock Up Your Emergency Savings

Having an emergency fund is critical to your financial health. You can only count on one thing in life: The unexpected. That’s why this fund is so important. It’s there to help ease the pitfalls of life. Here are some steps to help you build the fund. 

1. Set Up an Account. Find a high-yield savings account that you will use specifically for the emergency fund. Check credit unions and online banks, as they often have better rates than big banks.
2. Trim Your Budget. Go through your budget and trim the fat. Look at subscription services, as you often are paying for ones you rarely use. That extra money will now be used to fund your savings.
3. Start Small. The goal of your emergency fund is to have it stocked with enough money to cover six months of expenses. However, that doesn’t mean you can’t start small. The most important thing is to simply get started. So save $50 a month at first if that’s all you can afford. 
4. Set Aside Big Money. One way to help that fund grow faster is to set aside any cash windfalls. Let’s say you get a bonus or a big tax refund — put that money in your emergency fund.
5. Don’t Withdraw. Try your best not to touch that emergency fund until a true crisis hits. The longer you allow it to grow, the better.

Do One Thing: Use a high-yield savings account for your fund so the money grows as fast as possible.