Save for an emergency

Here are some ways to get started

Everyone should have a “car-breaks-down-kids-need-braces” emergency fund. If you don’t set aside some money now, you may be tempted during a financial emergency to reach for your credit card or to sell your stock portfolio.

A credit card, payday loan, or overdraft are not emergency funds. Your primary savings needs to be safe, secure, and liquid, where stock market busts and interest charges can’t sweep away your hard-earned money.

Here are some useful options from Spokane Teachers Credit Union to help you get your emergency fund started:

• Set up an automatic deposit of $50, $100, or whatever fits your budget each payday into an “emergency fund” at the Credit Union.
• Enlist the help of your entire household by setting a reward, such as an inexpensive trip to the lake, the city, or another favorite fun spot, as an incentive to reach a pre-established family savings goal.
• Commute by bus or carpool to cut your fuel bill. Combine errands into one car trip or consider walking or biking to nearby stores.
• Deposit your tax refund (or your next pay raise) into your emergency fund before you spend it.
• Open a Roth IRA and let it double as an emergency fund.
• Work overtime occasionally, or get a part-time job, to increase your income and savings.

• Comparison shop for auto insurance, setting aside money saved for an emergency.

• After paying off a big loan, keep making the payments -- this time to your emergency fund!

• Take full advantage of any 401(k) or 403(b) plans, where your employer matches your pre-tax contributions.
  

• Cut your transaction fees by using only surcharge-free Credit Union or Co-Op Network ATMs.

• Budget for the holidays by opening a Christmas Savings account.

• Skip eating out or a visit to the espresso stand once a week. Deposit the money you would have spent into your emergency fund.

• Earn greater dividends with an STCU money market account, while enjoying quick access to your money.