How to start saving for an emergency fund

With 4 out of 10 adults stating they cannot cover a $400 unexpected expense. With kids back in school and a routine setting in, this is a good time to see what financial opportunities you can take advantage of before the end of the year.

Deidre Davis, MSUFCU’s Chief Marketing Officer, is here today with suggestions for improving your finances this fall.

You never know when unexpected costs can come up, such as medical expenses, or home or car repairs. One of the best things you can do to be prepared is to establish an emergency fund, if you don’t already have one. Here's how you can get started:

  • Start with setting up a basic savings account for this fund
  • Saving a little bit each month can provide some cushion against unexpected costs
  • Treat your emergency fund like a monthly bill; set up automatic withdrawals so you add to it each month
  • Once your emergency fund is established, consider opening a higher-yield account, such as an Insured Money Management Accounts (IMMA) or money market checking, but make sure it is still accessible

You may want to also look at your retirement savings, making sure you are maximizing your 401(k) contributions. This means you need to contribute enough funds to get the maximum match your company might offer.

MSUFCU offers many savings options, including savings accounts, certificates, money market checking accounts, and IMMs. You can also set up automatic withdrawals into these accounts to occur as often as you would like. Access your funds and set up automatic withdrawals with the mobile app or on ComputerLine anytime from anywhere.

To learn more, visit msufcu.org.

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