Creating an emergency fund

[MUSIC PLAYING] The old adage is that you save your money for a rainy day. So what happens when it starts raining? Get ahead of the rain and start saving while it's sunny. After all, you never know when your car might need new tires, or your house may need a new roof, or if you'll suddenly find yourself out of work. 

Here are a few suggestions to help you get started on an emergency fund. Start saving now, before you have a need. Set up an automatic transfer so that your emergency fund builds behind the scenes. Set a goal of about three months' expenses for your emergency fund. When your income increases, raise your contribution to your emergency fund too. If you need to tap into the fund, remember to repay what you've borrowed so that you will be prepared for the next emergency. 

Use a money market account from Local Government Federal Credit Union as your emergency fund. You'll earn dividends and still have access to your cash if you need it. When the rain arrives, plan on using your emergency fund as an umbrella. 

LGFCU is an equal housing opportunity lender and federally insured by NCUA. 

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The situations described in this video are for informational purposes only and meant to provide examples of the products and services LGFCU offers to its members, which may be subject to approval. Contact a financial advisor or legal or tax professional for additional guidance.

The individuals presented in this video are members and employees of LGFCU and receive no added compensation for their appearance.

LGFCU is an equal housing opportunity lender and federally insured by NCUA.