Easy & Useful Tools to Build Your Emergency Fund
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Building an emergency fund is a crucial step in achieving financial stability. Life is full of unexpected events such as job loss, medical emergencies and unexpected car repairs without warning or time to prepare.
Having a financial safety net can significantly ease the burden during challenging times, providing peace of mind and security when you need it most.
An emergency fund is simply an amount of money that is set aside for unplanned expenses you might encounter, such as medical bills, home repairs or loss of income. It serves as a financial cushion that lets you breathe easier knowing you can handle life’s curveballs without going under.
Now, here are three easy tools to help you get started on building your emergency fund:
1. Use a Budgeting App to Plan for Your Savings
Save money for an emergency fund starts with a plan. Set up your savings plan by using the all-in-one budgeting app by YNAB. They will help you organize your monthly spending so that you can save more and create financially healthy habits.
Allocating and putting away savings into your emergency fund each month will ensure you reach your savings goals and keep you covered for a rainy day.
2. Use Barclays US High Interest Savings Account
Investing your emergency-fund money into a high interest savings account will ensure that it grows for you.
High interest savings accounts, such as Barclays Online Savings offer higher interest rates and apply compound interest daily, meaning you can start off with less money to earn more over time (who doesn’t want that?).
With no additional charge, easy online access whenever you need it, Barclays US savings account is a risk-free and good way to grow your money while still having the security to use it whenever you need money.
Use Barclays Online Savings and make your money work for you.
3. Consider an Online Bank like SoFi
High-Yield savings accounts are an essential financial product if you’re building an emergency fund or planning on saving up for something in the near future.
Using an online bank like SoFi can get you more return on your money than you could in a brick-and-mortar bank account because your cash is safe and accessible. Online banking with SoFi has lower overhead costs, which allows them to charge you lower fees and offer you higher APYs than brick-and-mortar banks.
Consider using SoFi today and make your cash go further.
