A big unexpected expense like a doctor bill or car repair can put the squeeze on your budget. But if you’ve built up an emergency fund, then you’ve got these surprise bills covered.
You need an emergency fund. Here’s how to get started.
It happens to all of us eventually. A big expense that needs to be paid right now. Maybe your car or truck needs a new transmission, which can cost from $3,000 to $7,000. Need a root canal? That can cost $1,000 per tooth. If you don’t have the cash to pay these bills, you might consider paying with a credit card. But if you need to pay off that bill over time, you could end up paying a good deal in interest. This is where an emergency fund can be a big help.
What is an emergency fund?
An emergency fund is a bank account where you save up money to cover large, unexpected expenses. It takes a while to build up your emergency fund, so it’s smart to get started today. Although financial experts recommend saving three to six months’ salary, so you have money in case you lose your job or get injured and can’t work, any amount you’re able to save can help make paying unexpected bills easier.
To start building your emergency fund, follow these steps:
You can prequalify for your loan online in just minutes. Or, if you prefer, call or stop by your local branch. Our loan specialists can answer any questions and help you fill out an application for the personal loan that fits your needs.