Personal Finance
Protect Your Family: Save for Emergencies
Saving for an emergency fund is one of the best ways to protect your family from financial hardship.
When you’re faced with unemployment, natural disasters, major car repairs or even a medical condition, having enough money saved up to support you through a crisis can help you recover.
Often, the hardest part of saving is knowing where to start. Whether you're brand-new to budgeting or an already-frugal spender looking for even more ways to cut back, Origin helps you with everyday tips built for real life. From smart budgeting to risk assessment, our experts set you on the path to financial stability.
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Smart savings for busy families
Even if you’re financially comfortable, emergencies can tip the scales. The money you put aside for unplanned expenses could end up covering anything from a fender bender to an unexpected vet visit. Whatever the circumstances, emergency funds get you back on your feet without missing a beat.
- Determine how much you should save. It’s hard to put a specific dollar amount on an ideal emergency fund because it’s so dependent on personal circumstances. As a general rule of thumb, experts recommend saving three to six months’ worth of living expenses. For a more accurate range, take a look at your monthly budget or create one with our guide. This will help you separate your need-to-haves from your nice-to-haves and determine how much you’ll need to keep yourself afloat for any given period.
- Think about your liabilities. Next, expect the unexpected. Try to recall any unplanned expenses that popped up in the past, and how much they cost. If you’re a homeowner, time-sensitive repairs or appliance replacements might be a key concern. If you have a pet, emergency vet visits or medications might also catch you off guard. And for many people, auto accidents or unexpected trips to the shop are real wallet-drainers. Make a list of these possible variables in your life, think about how much they typically cost you, and add this figure to your estimate.
- Start small. Saving money can feel overwhelming, especially if you’re living paycheck to paycheck or working irregular hours each week. However, even a few hundred dollars in the bank can save you from having to cover emergency expenses with high-interest credit cards. For many people, the easiest way to start is by setting aside a portion of your tax refund each year and rolling that money over into your emergency fund. Additionally, setting up automatic, recurring transfers for small amounts from each paycheck can help you stay consistent, gradually growing your savings.
- Cut back where you can. Whether it’s making your morning coffee at home, meal prepping for the week so you dine out less, or cancelling unused subscriptions, taking control of your cash flow can help you save big-time. And when you reallocate that money towards your emergency fund, you’re investing in your future.
- Choose the right savings account. Keeping cash at home is not only risky, it’s a big source of spending temptation. Instead, choose a savings or money market account to secure those dollars while keeping them accessible. With a variety of interest rate options, you can watch your savings grow over time.
Reimagine your emergency fund
Whether you're saving for a family vacation or future college tuition, Origin’s tips help you set goals, track spending, and make your money go further together.
Already saving? Step it up with practical tools and creative tips that grow your family’s savings faster. For more financial insights from Origin’s team of trusted advisors, please visit our blog.