Too Late to Save? Think Again.
In the face of life’s costly surprises, like an unexpected medical bill or a major home repair, having some money set aside can make all the difference.
Experts agree that an emergency fund – a savings account that can cover several months’ worth of household expenses in a crisis – should be your top priority after meeting basic expenses. The fund acts as a buffer against your next rainy day, so you can pay bills and handle necessities without resorting to high-interest debt.
For millions of Americans who are in tough financial straits due to the COVID-19 pandemic, it may seem like the moment to prepare has passed. But that’s far from true. In reality, it’s never too early to take charge of your finances – and it’s never “too late” to enjoy the benefits of saving.
Here’s how you can get started today:
- Start small. Determine a dollar amount (or a percentage of your paycheck) that you can comfortably set aside at the beginning of each week. This is a long-term commitment, so keep it realistic. If $25 a week is too much, start with $20 or $15. Remember, no amount is too small to save.
- Step it up over time. According to experts, it’s a good idea to save at least 20% of your monthly income. To reach that goal, budget all your household spending – from utilities to haircuts – and look for ways to trim what you don’t need. If you get a raise or a new job, consider adding the extra funds directly to your savings.
- Make it simple. With so much time-saving technology available to us today, there’s no reason saving has to be a chore. Try a mobile checking account like Axiom Online Banking. With a tap of your finger, you can set up an account online, view your balance, track transactions and transfer money to your emergency fund.
- Keep it handy … but not too handy. When trouble strikes, you may need to access your money promptly – so don’t store it in investments or a limited-access account. Instead, create a savings account designated for emergency use only. That way, you won’t accidentally draw from it in a less-than-urgent situation.
- Stay motivated. Saving isn’t something you do for a few weeks or months: It’s a lifelong commitment to good financial health. Take time each month to review and update your goals. If you miss a week, don’t give up – what matters is your long-term progress.
No matter your age, income or circumstance, saving is key to financial security and success. Set up your emergency fund today – and know that you’ll be ready for whatever tomorrow brings.
Axiom Bank, N.A., a nationally chartered community bank headquartered in Central Florida, provides retail banking services, including checking, savings, money market and CD accounts, as well as commercial banking, treasury management services and commercial loans for both real estate and business purposes.
