In times of crisis, you don’t want to be shaking pennies out of a piggy bank. Having a financial safety net in place can ensure that you’re protected when a financial emergency arises. One way to accomplish this is by setting up a cash reserve, a pool of readily available funds, such as a savings account that can help you meet emergency needs.
How much is enough to have in your financial safety net? Most financial professionals suggest you have three to six months’ worth of living expenses in your emergency cash reserve. The actual amount, however, should be based on your particular circumstances. Do you have a mortgage? Do you have short-term and long-term disability protection? Do you have health and dental insurance? The bottom line: Without an emergency fund, a periodic crisis, such as unemployment or disability, could be financially devastating.
To build your cash reserve, you can take several steps to eliminate the emergency cash reserve shortfall. You can consider budgeting a set amount to your savings as part of regular household expenses. If available, consider setting money aside through payroll deduction at work. Also, you can reduce your discretionary spending for a period of time until you have adequately funded your emergency cash reserve.
Once you have your financial safety net established, it’s time to think about contributing more toward your longer-term financial goals, such as retirement. If you need help you with your longer-term financial goals, a financial advisor at TFCU Financial Advisors can help you build a financial plan customized to your financial circumstances.
TFCU Financial Advisors
6501 Tinker Diagonal, MWC
(405) 737-0006
TFCUFinancialAdvisors.org
Securities are offered through RAYMOND JAMES FINANCIAL SERVICES, INC., Member FINRA/SIPC, and are not insured by NCUA or insured by any other government agency. Funds are NOT GUARANTEED nor are they deposits or obligations of the credit union or any affiliated entity of the credit union, and are subject to risk, including the possible loss of principal. Tinker Federal Credit Union, Tinker Financial Services, LLC and TFCU Financial Advisors* are not registered broker/dealers and are independent of Raymond James Financial Services, Inc. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc., a nonaffiliated third party provider to Tinker Financial Services, LLC and Tinker Federal Credit Union. All investments and information are intended for U.S. residents only. *TFCU Financial Advisors is a registered trademark and ‘dba’ of Tinker Financial Services, LLC. Raymond James financial advisors do not render advice on tax or legal matters. Before investing carefully consider the investment objectives, risks, fees and expenses.