Building An Emergency Fund 101 | Banterra Bank
Building An Emergency Fund 101
Home Blog Building An Emergency Fund 101
Emergencies often lead to unplanned payments which can do a lot of financial damage. That’s why it’s better to be safe than sorry when it comes to the unexpected. Building an emergency fund is crucial, so Banterra Bank is here to make sure you know the basics.
A great way to give yourself motivation to continue saving is to set smaller goals. Rather than making it your goal to save six months' worth of expenses, start with a month. Once you reach that goal, you can gradually work your way up.
Balance With Your Debt
If you’re in debt of any kind, make sure you continue paying that off as you save rather than putting all your extra money towards your emergency fund. This will help manage additional costs due to interest rates and potential late fees. The sooner you get your debt paid off, the sooner you can make building your emergency fund a priority.
If you’re going to incorporate only one of these tips into your financial routine, let it be this one - set up automatic transfers to your savings account. Automating your savings means you don’t even have to think about transferring money to your emergency fund, keeping it out of sight and out of mind. Not only is this convenient, but it’s extra helpful for those who can be forgetful at times. You can easily do this with Banterra Bank’s Digital Banking.
Whether you have a friend who wants to build an emergency fund or a family member who is a financial role model, find someone who you can check in with every so often to help you stay accountable. Having an accountability partner keeps you on track and is also a great source of extra encouragement and motivation.
Continue Monitoring Your Progress
Check your balance occasionally and see how much progress you’ve made. This allows you to stay on track with your goals so you can adjust if needed. Knowing you’ve made progress is also a big motivator and can encourage you to keep going.
Don’t forget to celebrate yourself for reaching goals and staying consistent. Pick a couple “milestone” goals and once you reach them, come up with a way to treat yourself.
Does having an emergency fund spark your interest? If so, Banterra Bank is here to help you open a savings account with ease. To learn more about our account options and decide which one is right for you, click here.
Budgeting Financial Education
October 11, 2021 by Banterra Bank