Frequently asked questions
Building Your Savings
How much should I have in savings?
A good rule of thumb is to keep three to six months worth of living expenses in your savings account for emergencies.
For instance, if you spend an average of $3,500 per month, you will want to save between $10,500 and $21,000.
What is an emergency fund?
An emergency fund is money set aside to cover your living expenses in the event of an emergency such as job loss, illness, disability, or large unexpected expenses. Saving for unforeseen emergencies is a smart way to protect yourself from incurring debt, or more seriously, filing for bankruptcy or foreclosure.
The ability to quickly access these funds is important, so your best option would be a regular savings or money market account.
How can I save more money?
One of the best ways to save money is to have money directly transferred to your savings from your checking on a regular basis. For example, have $25 transferred from checking to savings every time you get paid. The key is to have it done automatically, so saving money is almost effortless.