The easiest way to determine how much money you need to put aside is to do an honest monthly budget. The worksheet below will help you get started. What does it really cost for you and your family to get through a typical month? This isn’t about replacing your entire income. This is about keeping the lights on and food on the table. Be practical and realistic. And err on the side of having a little more than you think you’ll need.
You might be surprised at how much money you’ll need to keep in your safety net fund. Remember to pay yourself first. It’s often easier to save money if you can have a specific amount drafted out of your paycheck and placed in your safety net fund every time you are paid.
Once you start accumulating some extra cash, a money market account is a great choice. You will be building up a healthy balance, so it will be great to earn some interest while still having ready access to the money when you need it.
Any of our West Bank personal bankers will be happy to help you determine what’s best for your family. Stop by one of our full service branches to talk to one of our experts.
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