Ready for a Rainy Day

From the President's Desk...

Financial peace of mind. For many people, that phrase is only a dream. However, by making a commitment to taking one major step - building a cash emergency fund - you truly can breathe easier.

Most financial experts recommend people have cash representing 3-6 months of household expenses sitting in a bank savings or money market account. The idea isn't to put these funds into the stock market or a volatile investment. Instead, they should be liquid - easily and readily accessible, but only in the event of a true emergency. Things such as a car repair that come up unexpectedly can cause financial chaos, but when you have an emergency fund, these things are merely an inconvenience.

True emergencies are just that - emergencies. Buying a fishing boat or taking a shopping trip don't qualify. But when life throws you a curve ball that demands quick access to cash, that emergency fund can be a lifesaver. That account is something you build over time and hope to never touch, unless that actual, real-life emergency arrives.

This all sounds great, but how do you start? Keep it simple. Start out with a more modest goal, such as $1,000. Look at your family budget and figure out how long it will take you to save the money, then make a commitment to getting there over that time horizon. Use tools such as automatic transfers you establish with us to make the process convenient. Once you are at $1,000, take a bow, and then set a new goal - perhaps $5,000 - and follow the same process. Over time, you can increase your balance to the point where financial emergencies are a thing of the past, and financial peace isn't just a dream…instead, it's your reality!