Keeping enough cash in your savings account gives you some financial leeway to address unexpected life events, like losing a job or sustaining an injury. However, many people don’t use their savings to the fullest, which is where this guide comes in to provide tips for making a financial emergency plan. 

How Much Should You Keep in an Emergency Plan Fund?

You can’t always anticipate life’s obstacles, but you can allocate funds to cover unexpected expenses. The specifics of this emergency fund will depend on your lifestyle. Start by calculating all of your monthly expenses, including details like your rent or mortgage, utilities, car payment, and insurance costs. Then you can start taking steps to save. Many experts recommend putting three to nine months of income in your account.

How Much Should You Put Toward Financial Goals?

In addition to planning for emergencies, you might also have financial goals you’re trying to reach, like buying a home, preparing for retirement, or saving for your child’s college tuition. Many financial advisors recommend putting 20% of your monthly income toward these goals. 

How Can You Save Up?

Here at Hawaiian Financial FCU, we want to ensure that you’re saving enough for your emergency plan and financial future.  Our account representatives and tellers can help you set up accounts to start putting money away. Tools like automatic deposits will ensure you keep growing your emergency fund and savings account. If you aren’t sure how much to put into each account, work with a financial planner. They can look at your income and goals to make specific recommendations for your needs. 

Start saving for your emergency plan with Hawaiian Financial Federal Credit Union. With hundreds of millions of dollars in assets and over 60,000 members across Hawaii, the credit union is one of the leading financial institutions in the state, with a reputation for combining personalized service with technologically advanced personal banking solutions. Learn more about our broad array of services online, follow us on Facebook, Twitter, and Instagram for news and updates, or call (808) 832-8700 on Oahu or toll-free at (800) 272-5255 with any questions.