Save for the unexpected

STRESS BUSTERS

October 26: Save for the Unexpected Unexpected financial emergencies can happen at any time: a fender bender, a surprise medical bill, a broken appliance, a loss of income, or even a damaged cell phone. Large or small, these unplanned expenses often feel like they hit at the worst times and they are almost always stressful. Setting up a dedicated savings or emergency fund is one way to protect yourself. Minimize the stress that comes from unexpected emergencies by starting (or reinforcing) a savings habit.    Set a goal. Having a specific goal for your savings can help you stay motivated. Use a savings planning tool to calculate how long it’ll take you to reach your goal, based on how much and how often you’re able to put money away. Create a system for making consistent contributions. Setting up automatic recurring transfers is one of the easiest way to save. Aim to make it a specific amount, and if you can occasionally afford to do more, you’ll watch your savings grow even faster. Regularly monitor your progress. Whether it’s an automatic notification of your account balance or writing down a running total of your contributions, find a way to regularly check your savings. Watching your progress can offer encouragement to keep going. Celebrate your successes. If you stick with your savings habit, don’t miss the opportunity to recognize what you’ve accomplished. Find a few ways that you can treat yourself, and once you reach your goal, set your next one.   As Essential Guide to Building an Emergency Savings / Coping with Financial Stress