How to really save for unplanned expenses
December 16, 2024
In today’s unpredictable world, having a financial safety net is more crucial than ever. Financial “emergencies” can strike at any time, whether it’s a sudden medical expense, car repair, or job loss. Unfortunately, nearly 6 in 10 (59%) U.S. adults are not comfortable with the amount of emergency savings they have for such unexpected events.* The good news is you can build your emergency savings without even thinking about it using a few simple hacks.
Here’s a simple savings hack
If you’re already on a tight budget, it’s best to focus on small but consistent deposits to build your savings over time. Start by opening a dedicated savings account and transfer $10 into it. Feels good, right? Next, set up a regular automatic transfer of $10. Schedule it weekly, bi-weekly, or align it with your paycheck. This amount is less than the cost of a movie ticket. By saving $10 per week, you’ll accumulate $520 in a year, which can almost cover a common unexpected expense like a car repair. If $10 feels like too much, start with $5 and increase the amount when you’re ready.
Here’s how to get started
Utilizing the tools in RCU’s digital banking, you can easily set up your emergency savings account and add money on a regular basis. Here’s a step-by-step guide to help you get it done:
- Open a savings account: Log in to digital banking and navigate to "Open a Share" from the main menu. It’s located at the top in desktop, or bottom right on mobile. On the next screen, choose "Savings Accounts" and select "Open Now."
- Fund your new account: You’ll need to move some money from an existing account, like your checking account, to open your savings account. Start small with $5 or $10.
- Give it a custom name: Once your account is available in digital banking, go back and rename it something specific, like "Emergency Fund," or "Rainy Day." This will help you stay motivated and focused on your goal. Edit the name by going into the account, viewing Details, then selecting the pencil icon.
- Automate your savings: Schedule automatic transfers from your checking account to your new savings account to occur regularly, such as the day after your payday or once a week. This way, you’re making consistent deposits without having to think about it. Learn how.
Don’t have digital banking? Learn how to get started at our online Resource Center.
Resist the Temptation
It’s tempting to dip into your emergency fund for non-essential expenses like a weekend getaway or a new gadget. But remember, the purpose of your savings is to cover unexpected, urgent needs. It may help to ask yourself if the expense is necessary for your health, safety, or essential daily living—like a car repair so you can get to work. Keeping this distinction in mind will help you stay disciplined and ensure your emergency savings fund is available when you truly need it.
Building a fund for unexpected expenses is an important step towards financial security. With some initial set up using the tools in RCU’s digital banking, you can easily ensure that you’re prepared for whatever life throws your way. If you need assistance, we’re always here to help.
Explore RCU’s different savings account options and find the solutions that work for you. Learn more.
PPP Forgiveness Application Deadline
Congress passed The Economic Aid Act which changed the deferment period from 6 months post covered period to 10 months post covered period. For example, if your covered period ended June 30, 2021, under the new guidelines the earliest your first loan payment wouldn’t be due until April 2022, and you have until then to request forgiveness. Please use the following calculation to help you identify when your forgiveness will be due:
- PPP borrowers may select a covered period anywhere from 8 weeks to 24 weeks.
- RCU is automatically calculating your loan due date based on a 24-week covered period, if you intend on using a shorter covered period please inform us immediately as this will impact your due date.
- Your correct deadline will be reflected in your online banking account.
If all or part of your PPP loan is not forgiven, your first loan payment will be due the first of the following month after a decision is made by the SBA.
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