More Ways to Help You Save
A new year has a way of renewing our ambition to make changes in our lives. If you’re like me, you’re a little overwhelmed with what to start working on first. In one of our previous savings blogs, we talked about how much you’re spending, and where your money is going. The next step is to get yourself ready for the inevitable – an unexpected expense and the goals to reach financial success.
Expect the Unexpected
The time for thinking about how to pay for an emergency…is before the emergency happens. An emergency fund, equal to three to six months of expenses, is recommended by most financial planning professionals like Dave Ramsey. Opening a dedicated emergency savings account can help keep your funds separate, safe and easily accessible. If you need a simple, low-risk option, ECCU offers a savings account that helps you build your emergency fund while also supporting ministries around the world.
Read more about how to kickstart your emergency fund by saving $1,000 in 30 days.
Realizing Realistic goals
After tracking expenses, setting up a budget, starting an emergency fund, you can also make a plan to pay off credit cards and develop short-term savings goals. The American Savings Education Council identifies these as goals to achieve within the next year or two, such as saving a computer or other substantial purchase. For this type of short-term savings, a credit union like ECCU can help you play it safe with a savings account, a certificate of deposit (CD), or a money market savings account. These accounts offer a lower rate of return, but are also low risk.
Follow these simple steps can help you stay on track for financial success in the coming year.