Building an emergency fund is one of the most important ways to protect yourself against financial disaster. It’s an account with money set aside strictly for emergencies. Leighton State Bank offers savings accounts, CDs and investment options to help you achieve this goal. According to Iowa Jump$tart, here's why you want to start an emergency fund today:
Because stuff happens... your car could break down, the heater in your house could go out, you might need a new roof, you could lose your job, or you might need a medical operation. You can’t anticipate when these things can happen but they might leave you with a large bill. Be prepared by having money set aside.
Aim to have six months living expenses put away... this should be what you need to cover bare essentials such as the mortgage, utilities, food, insurance premiums, childcare costs and everything you need to keep your life running. Even putting away one month of your living expenses is better than nothing. You need to have something set aside to handle emergencies. You also need to be disciplined and not give into temptation to pull money from your emergency fund to take vacations, indulge in splurges or use it for non-emergency expenses.
Going without an emergency fund is an open door to debt... when you have an adequate emergency fund, you have piece of mind and can avoid turning to debt in a time of crisis.
Leighton State Bank can help you start your emergency fund today. Contact us and we will find a product to meet your needs and achieve your financial goal.