2020 definitely showed us unprecedented times and many people experienced financial hardships. Having an emergency savings cushion can help you stay above water the next time life doesn't go as planned.
Day 1 of #AmericaSavesWeek is all about the easiest and most effective way to save, which is to SAVE AUTOMATICALLY.
How do you save automatically? The two best ways to #SaveAutomatically are:
- Splitting Your Direct Deposit: Have your employer direct a certain amount from your paycheck each pay period and transfer it to a retirement or savings account (or both). Traditionally, you can set this up using your employer’s direct deposit program. Contact your HR representative for more details, and set this up today. No amount is too small!
- Setting Up An Automatic Bank Transfer: Choose a certain amount to be transferred from your checking account to your savings account on recurring day each month (like the day after you usually get paid). You can do this at FNB inside our online banking platform or by completing a simple form with your account officer. You can even split the amount between two days each month so it is a smaller amount at a time.
Having a “set it and forget it” approach to saving increases your success rate.
Day 2 of #AmericaSavesWeek is all about being prepared for something that we should all actually expect: to have an “unexpected” financial emergency.
Saving for the unexpected can be done with an emergency savings account! Many people wonder how much they should have in their emergency savings and the easy answer is "it depends".
A good starting goal for an emergency savings account is $500. From there, you can work your way up to stockpiling 3 - 6 months worth of expenses in your savings account.
So, if your monthly expenses are roughly $2000, a long-term goal could be $6,000 on the low end or $12,000 on the high end. Reaching those long-term goals is gonna take time, but it will be worth it.
Remember, saving money becomes easier as it becomes more of a HABIT instead of a burden. So, start with a small amount and work your way up.
We believe in you and are here to support you along the way!
Imagine how much less stressed you will be 5 years down the road when you have to buy new car tires and you can cover the expense in CASH!