Bank like a financial pro with the Alliant mobile app. Make payments, deposit checks, manage cards and so much more.
Renovate your kitchen, pay off high-interest debt, or have access to emergency funds when you need it with an Alliant Home Equity Line of Credit.
Browse new and used vehicle inventory, and qualify for a rate discount when you buy!81
Separate each of your savings goals into an Alliant Supplemental Savings Account so you can visualize your progress.
By Katie Pins
Seventy-eight percent of full-time workers said they live paycheck to paycheck, according to a recent report from CareerBuilder. That large number of Americans includes those making $100,000 or more a year. So, if we’re living paycheck to paycheck, how are we prioritizing our emergency funds and do we have enough for those unexpected expenses? We’re going to break down how to much you need and the many ways you can up your savings game.
No one thinks that they will get seriously ill or lose their job, but it can happen. Having an emergency fund helps ensure that you won’t need to take out a loan if something were to happen to you or someone in your family. So what qualifies as an emergency? Job loss is one of the most common emergencies. A major medical bill or needed home repair would also count as emergencies. For other expenses, having a regular savings account separate from your emergency account will help out. Those expenses could include holiday shopping and saving for fun home projects. We’ll talk more about Supplemental Savings accounts in a bit.
Many experts say you need at least six months’ worth of expenses. However, that may not be enough for many people. You may need more savings if your income isn’t steady, if you’re in a high-risk industry or job (such as a tech startup), or if an upcoming recession is predicted.
With those scenarios in mind, here is what you need to plan for…
Other necessary personal expenses
You should not include expenses that can be cut, such as vacations, shopping and dining out. It may take some time to estimate your expenses, but it’s going to be worth it. We promise.
So you did the math and you’re short. No need to panic, we’re here to help! First, any amount in savings is better than nothing. If you only have three months, you’re in OK shape but you can improve. Second, to set up an emergency fund, you need to know where one should go. An emergency fund should not be susceptible to the changes of the market place and needs to be liquid. That’s why you should keep your “what if” dollars in a savings account with a high-interest rate.
It’s best if your emergency account is separate than your regular savings account so you’re not tempted to dip into it for non-emergencies. Alliant offers Supplemental Savings accounts so you can get a high rate and keep your different savings goals organized.
Once you pick an account, make your emergency fund a priority and contribute anything you can. Cut back on things like coffee shop drinks and eating out. Calculate how much you can save by cutting those extra expenses and put that money in your fund instead. Set up automatic transfers each month or use an app like Acorns to round your purchases up. On a three-paycheck month, devote a paycheck to your emergency savings. If you’re struggling for motivation, adopt a clever way to save. At the end of the day, financial security could help you breathe a little easier.
Katie Pins is a marketer fascinated with finance. Whether the topic is about the psychology of money, investment strategies or simply how to spend better, Katie enjoys diving in and sharing all the details with family, friends and Money Mentor readers. Money management needs to be simplified and Katie hopes she accomplishes that for our readers. The saying goes, "Knowledge is Power", and she hopes you feel empowered after reading Money Mentor.
Sign up for our monthly newsletter to help you stay at the top of your financial game.
Welcome! You'll now have financial tips sent to you directly each month.
You are leaving Alliant’s website to enter a website hosted by an organization separate from Alliant Credit Union. The products and services on this website are being offered through LPL Financial or its affiliates, which are separate entities from, and not affiliates of, Alliant Credit Union.The privacy and security policies of the site may differ from those of Alliant Credit Union.
You are leaving an Alliant Credit Union website and are about to enter a website operated by a third-party, independent from Alliant Credit Union. Alliant Credit Union does not manage the operation or content of the website you are about to enter. Alliant Credit Union is not responsible for the content and does not provide any products or services at this third-party website. The privacy and security policies of the site may differ from those of Alliant Credit Union.