Savings for the Unexpected

At one point or another, we all have an expense come up that’s outside of our normal monthly spending. Whether it’s a great thing that you’ve planned for (a new house, a new car, going back to school, a well-deserved vacation) or the complete opposite (your AC went out, your car needs repairs, or you run into a medical emergency), you’ll need a plan and some money saved up in advance to make it possible.

Be prepared for any and all of it with these savings strategies:

Choose your goals and make a plan

For emergency funds, most financial experts recommend saving enough to cover at least three months of your normal living expenses. If you’re saving for a trip, a house, or another major event, decide how much you’ll need for a down payment or to cover the purchase (and when you need the money by). Then, use our savings calculator to figure out how much you’ll need to save each month to reach each of your goals.

Open different accounts for different goals

Even if you have a savings account already, it may make sense to open another one (or two), especially if one is intended to be your emergency fund. That way, you’ll avoid mixing your savings or losing track of your progress toward each individual goal. 

Set up automatic transfers

Once your accounts are set up and you’ve calculated how to reach each goal, set up automatic transfers from your checking account into each savings account. You won’t have to keep track of how much you need to contribute each month—and you can reach your goals without any extra effort.

Watch our demo for how to set up automatic transfers here.

Don’t dip into your savings

As you work toward your savings goals, avoid pulling money from the accounts if at all possible. Saving consistently, without touching it, will make it possible to reach your goals when you expect to. And you’ll start to benefit from compound interest.