Date: February 26, 2024
Category:
News; Education; Financial Flexibility and Freedom
Saving money takes a lot of patience and discipline. So, when you finally reach a big savings goal, it deserves to be celebrated!
Maybe you’ve worked hard to save up your first $1,000 in an emergency savings fund. Congratulations — building a starter emergency fund is one of the first and most important steps you can take in your Financial Flexibility and Freedom® journey!
But once you’ve hit this savings milestone, you might be wondering: What’s next?
Now that you’re in the habit of saving money, here are some ways to keep the momentum going:
Your Next Savings Goal: A Fully-Funded Emergency Fund
Saving your first $1,000 is a great start, but realistically, it won’t be enough to cover every financial emergency. To fully fund your emergency savings, aim to save up at least 3 to 6 months of essential expenses. This includes your housing, utilities, food and transportation.
A fully-funded emergency fund gives you the peace of mind to weather major financial storms, such as job loss or a medical emergency.
Where to Save: Savings Accounts vs. Money Market Accounts
Your emergency fund needs to be safe and secure. (Stashing cash in your sock drawer isn’t the best approach!) It should also be liquid, meaning you can access it quickly and easily. Two good options are a simple savings account or a money market account.
- Savings Accounts offer a simple, straightforward way to save. With WPCU's TrueSaver® savings account, you’ll earn our highest savings rate on your first $1,000 saved, giving you a great foundation for your starter emergency fund.
- Money Market Accounts provide more value than a traditional basic savings account. Once you’ve established your starter emergency fund, a money market account can help you grow the rest of your savings. With a WPCU money market account, you can earn more on your savings with easy access to it whenever you need it.
How to Save: Put It On Auto-Pilot
Consistency is the biggest key to building your savings. With WPCU's Mobile and Online Banking, it’s easy to set up small automated transfers into your savings account on a weekly or monthly basis. Another idea is to set up automatic deposits into your savings account each payday. This way, you’ll be saving without even thinking about it!
Take the Next Step in Savings!
As your caring financial partner, WPCU is here to help you Save Better throughout your Financial Flexibility and Freedom® journey!
Whether you’re a first-time saver getting started with an emergency fund or ready to take the next step in savings, we have many options to help you reach your savings goals.
Learn more about our savings account options or schedule an appointment with a Financial Coach to see how WPCU can help you get on the fast track to savings.
