Emergency Savings
Setting Up an Emergency Fund Account
How to get started:
Before we discuss “the how”; let’s set some written goals
Set Goals
Your savings goals are unique to you and your situation. Your goals can be short or long term; they can be big or small. ask yourself these questions:
Are my goals realistic? Be detailed
How long will it take me to reach my goals? What are your time horizons
Do I have enough extra money?
Am I willing to do what’s necessary to reach my goals?
Pay Yourself First
Think of your savings as a bill. “I must pay savings (x) dollars every month.”
Have some of your paycheck automatically deposited into a savings account.
Use a separate bank/account for your savings and make it difficult to get to.
If you get a raise or your income goes up, save the difference.
Save your tax refund (though too large of a refund means a no interest loan to the government)
A good place to place your funds is an online bank or an US savings I bond (currently paying 2.76%)
I Bond rate is adjusted every six months, that being May and November.
Daniel Iuculano, AAMS CMFC
Accredited Asset Management Specialist
Chartered Mutual Fund Counselor