4. Save 3 to 6 months of expenses
It’s time to fully fund your emergency savings to cover 3 to 6 months of expenses in case of life’s unforeseen events. This will help you stay out of debt and pay for unexpected events in cash.
Tip 1: Adjust your budget.
Your 3 to 6 months of savings will need to cover costs such as food, housing, utilities, transportation, and other necessary expenses in case your income is lost.
Use our Freedom Savings Calculator to know how much you will need to save for 3 to 6 months of expenses. Another way to build your savings? Any money you previously used to pay off your debt can now be added to your savings.
Set Goals and Budgets
Tip 2: Open a separate savings account.
A separate savings account helps you earn interest on the money you’re saving while keeping your 3 to 6 months of expenses out of sight and out of mind.
Open a FAIRWINDS Emergency Savings Account and earn ... APY* on the first $1,000 you save.
Open an Account
Tip 3: Set up automatic transfers.
Automatically transferring a portion of your paycheck into your savings is a simple way to reach your goal faster.
Set Up Transfers