3 Reasons Why I'm Beefing Up My Emergency Savings Now
- Emergency savings can help you get out of a difficult financial situation.
- You may want to boost your savings now if you can afford it.
Find out why boosting your savings now could benefit your finances.
If you have extra money to set aside, it's never a bad idea to do so. Regular savings contributions can add up and help you when you need additional funds. Should you boost the amount of money that you're saving? Maybe. Find out why I'm beefing up my emergency savings.
It took me many years to become a regular saver. While I was always pretty careful with my money, there were points in my life when I didn't save money regularly. Right now, regular savings are a must and part of my financial plan.
I make sure that I don't skip out on setting money aside by automating the savings process. Every two weeks, money is automatically transferred from my checking account to my savings account. With this method, I'm consistent and save time.
I recently made updates to my recurring transfers to increase the amount of money I'm saving. Over time, this will boost my savings and help me feel more confident about my financial situation.
Here are three reasons why I'm beefing up my emergency fund savings.
1. Everyday prices are on the rise
We've all seen increases in the cost of everyday products and services. Gas, groceries, and home essentials are becoming more expensive, and every little price increase impacts our budgets and, in turn, affects our bank accounts.
While I can continue to buy what I need right now at higher prices, those prices may be even higher in the coming months. For this reason, I want to save more money now. If I need to dip into my emergency savings to cover the cost of my daily living expenses in the future, I can.
2. I'll be less likely make unnecessary purchases
When I leave extra money in my checking account, it feels like a welcome invitation to spend it. I have a feeling that I'm not alone with this. To ensure that I'm not spending a lot of money on unnecessary purchases, I like to move extra funds over to a separate savings account. Increasing my regular savings contributions will make me less likely to spend money carelessly.
3. My future self will appreciate it
I've regretted overspending, but I've never regretted having money in my savings account. Life can quickly change after one single event. While I may feel secure and have little need for my emergency fund now, my situation may change. If that ever happens, my future self will be thankful that I took the time to beef up my emergency savings today.
Should you boost your savings now?
You may be wondering if now is the right time to boost your emergency fund savings. If you can do so, it's not a bad idea. Even a small amount of extra money can add up and make a difference later.
Do you struggle with saving consistently? Consider setting up automated transfers so you save regularly. You can choose how often you save -- whether that's weekly, bi-weekly, or monthly -- and how much to transfer. Doing this will make it easier to save consistently and will mean less work for you.
It's never too late to change how you manage your money. Check out these personal finance resources if you're looking for more ways to improve your financial habits.
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