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 Pam Leibfried
One of the most common pieces of advice from personal finance experts is that everyone should have an emergency fund. But why is an emergency fund so important and how much money do you need to have in it?
Why does every single personal finance guru that appears on TV or in print tell us that we should have an emergency fund? They know that life sometimes throws us a curveball – an unexpected job loss or a major illness could be around the corner. When those events happen, an emergency fund can serve as a financial safety net, helping to pay ongoing expenses so that a job loss or a health crisis doesn’t cause you to lose your car or home before you get back on your feet.
Recommendations for how big your emergency fund should be tend to vary somewhat depending on which advisor you consult. In researching this article, I found a couple of experts who recommended saving three months of living expenses, and one who recommended saving eight months. The majority, however, recommend an emergency fund that will cover six months of living expenses. Why six months? That’s about how long it takes most people who are laid off to land their next job, and will cover the out-of-pocket expenses for most people facing a major illness (provided that they have medical insurance).
For most of us, a goal of saving six months of expenses means only six months of essential expenses – the things that are not at all optional, like housing, transportation, taxes, debt obligations and food. If ill or laid off, we’d make the decision to cut back on entertainment, eating out, clothing purchases and other discretionary expenses. But if you know that even a job loss will not stop you from going out with your friends on Saturday night, then you need to save a higher amount than those who will go into uber-frugal mode as soon as they get a pink slip.
Alliant Supplemental Savings Accounts
You can easily set up an Alliant Supplemental Savings account for your emergency fund. And you can set up an automated monthly transfer from your Alliant Checking or Savings account to make it even easier to save.
Get even more personal finance info, tips and tricks delivered right to your inbox each month.
Thanks for subscribing to Alliant's Money Mentor newsletter! You will now receive personal finance tips in your email inbox 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.