Saving for a Rainy Day
Car repair? Flooded basement? A child’s last-minute school trip? Unplanned and unavoidable expenses can easily derail your family’s budget and even your retirement plan, causing long-term financial damage. But, even a modest emergency fund can go a long way when financial surprises come your way.
Reduce Your Money Stress
According to financial experts, everyone should have an emergency fund that can cover three to six months worth of their expenses. This may seem daunting, but saving for emergencies can be easier than you think by following a few simple steps.
Step 1: Consider renegotiating credit card rates, trimming extra expenses, shopping around for better homeowners and auto insurance and eating out less.
Step 2: Start small and set a realistic amount that you can consistently put away. You can always add more over time. The key to saving is getting started and staying consistent.
Step 3: Sign up for an automatic savings plan where money transfers directly out of your checking account into your savings – it’s the easiest way to save it before you spend it.
Step 4: Immediately save a portion, if not all, of your tax refunds or any unplanned sum of money before you’re tempted to splurge on frivolous purchases.
Step 5: Create both short- and long-term savings goals so you can track your progress. Once you see your account begin to grow, you’ll be more inspired to keep saving.
Getting Help (Free Resources for Cox Employees):
Through Magellan, Cox employees have access to one-on-one phone consultations with financial experts on a range of topics, including debt, student loans, budgeting and retirement planning. Call 1-800-888-CARE (2273), option 2. The organization name is Cox.