Saving for Emergencies
Financial emergencies can be extremely stressful for any family. Emergencies can (and likely will) happen to all of us, so it’s important to make a plan ahead of time. Let’s discuss the conversations you ought to have with the people in your life to help them navigate these inevitable hurdles.
Here are a few key considerations to help you guide yourself and your loved ones towards financial preparedness before an emergency.
The size and nature of the fund will depend on your risk tolerance and how you or your family define a financial emergency. It’s generally recommended that you maintain savings equal to 3-6 months worth of expenses.
With a healthy emergency fund, you will be protecting your family against unseen difficulties, such as medical expenses or unemployment, while giving yourself peace of mind.
Tip: Slow and steady
Remember that not all emergencies will impact you equally. Keep in mind which emergencies would necessitate an emergency withdrawal, and which are a lower level of concern. By defining what qualifies as an emergency, you won’t be tempted to draw from the fund for non-critical expenses.
Tip: Lighten your load with automatic transfers
Saving is made easier than ever through automated tools that keep your fund stocked with cash. Ahead of emergencies, consider setting up automatic monthly transfers from your checking account to your growing emergency fund. You will be amazed at your fund’s growth, without fretting over making your monthly transfers on time.
Point Breeze Credit Union members have access to a variety of protections, including home, auto, and life insurance, plus debt protection. Knowing the avenues to financial stability will position you and your family for a brighter future amid any emergency.
By working with us and our partner, TruStage®, you'll have access to various types of insurance including home, auto, life, and accidental death protection.
FAQ on Building an Emergency Fund
For a deeper dive on emergency funds, and how much you may want to save, see our previous blog post protecting you and your family’s financials.
Automate your Savings with Digital Transfers
With digital transfers, you can move your money when and where you want among your various accounts. Wherever you need to transfer money, we offer digital tools to make the process quick and easy.
The Basics
When discussing financial emergency preparedness with others in your life, it’s important to align on all the basic considerations. Where do we start? What counts as a financial emergency? How will this affect me and my family? What recourse do we have when emergencies arise?Here are a few key considerations to help you guide yourself and your loved ones towards financial preparedness before an emergency.
Starting an emergency fund
Establishing an emergency fund is the first and most important step in financial emergency planning. This pool of money will be your main protection against the added stress from financial emergencies.The size and nature of the fund will depend on your risk tolerance and how you or your family define a financial emergency. It’s generally recommended that you maintain savings equal to 3-6 months worth of expenses.
With a healthy emergency fund, you will be protecting your family against unseen difficulties, such as medical expenses or unemployment, while giving yourself peace of mind.
Tip: Slow and steady
An emergency fund won’t appear overnight. Set realistic monthly savings goals, and add to your emergency fund over time. This practice will make the process less overwhelming, and help you develop invaluable savings habits.
Defining a financial emergency
Emergencies are a scary but inevitable part of life. Medical emergencies, job loss, car trouble, and home damage can happen at a moment’s notice. It’s important to know how these emergencies might affect your family, especially when speaking with another financial decision maker.Remember that not all emergencies will impact you equally. Keep in mind which emergencies would necessitate an emergency withdrawal, and which are a lower level of concern. By defining what qualifies as an emergency, you won’t be tempted to draw from the fund for non-critical expenses.
Tip: Lighten your load with automatic transfers
Saving is made easier than ever through automated tools that keep your fund stocked with cash. Ahead of emergencies, consider setting up automatic monthly transfers from your checking account to your growing emergency fund. You will be amazed at your fund’s growth, without fretting over making your monthly transfers on time.
Consider your options
There are multiple paths out of a financial emergency, beyond the presence of an emergency fund. Consider insurance policies, federal and state government assistance, or other temporary relief programs available via financial institutions.Point Breeze Credit Union members have access to a variety of protections, including home, auto, and life insurance, plus debt protection. Knowing the avenues to financial stability will position you and your family for a brighter future amid any emergency.
Our Philosophy
Don’t face emergencies alone
Financial challenges require difficult conversations and calculations, but nobody has to face them alone. At Point Breeze, we have a network of resources that can help you tackle whatever daunting emergencies you encounter. Consult a representative at your local Point Breeze office, and get started on your family’s financial emergency plan.Point Breeze Picks
Insurance and Protection with TruStage®By working with us and our partner, TruStage®, you'll have access to various types of insurance including home, auto, life, and accidental death protection.
FAQ on Building an Emergency Fund
For a deeper dive on emergency funds, and how much you may want to save, see our previous blog post protecting you and your family’s financials.
Automate your Savings with Digital Transfers
With digital transfers, you can move your money when and where you want among your various accounts. Wherever you need to transfer money, we offer digital tools to make the process quick and easy.
Keep an Open Dialogue
Emergency preparedness is made easier when you and your family have a well-defined plan that’s been clearly communicated. These conversations don’t need to be as scary as they seem. Honest conversations can lighten the emotional impact of the unexpected, and smart planning will lighten the financial impact for your and your family.Point Breeze Credit Union is a full-service financial institution with locations throughout Maryland.