Potholes and rising temperatures can wreak havoc on your life if you’re unprepared. From broken pipes, dead batteries, corrosion, or leaks, unpredictable climates lead to unexpected expenses. This is why it pays to create and build up an emergency fund that’s there for you when trouble strikes!
Ask the experts
You can begin by speaking with a Canopy member service advocate about high interest savings, checking, and term share accounts that can help you earn the best rates possible while you’re stocking cash aside for a proverbial rainy day.
Set a monthly savings goal
Determine what you can afford to set aside in savings each month. Talk with your Canopy member advocate about setting up automatic deductions so funds are deposited directly into emergency savings with each paycheck you earn. Budget what’s left for household expenses and regular monthly spending while your emergency fund grows.
Review your monthly expenses and look for ways to cut back
Track where you’re spending and see if you can do without a few things. Do you need to keep all the streaming accounts, or can you quit a few and reactivate when there’s something you really want to see? Adding more home-cooked meals offers opportunities to bond with loved ones and optimize your emergency fund. You can always celebrate with a meal out once you reach your savings goals!
Find a side hustle
While this may not be possible for everyone, side-hustles are awesome ways to earn an extra few hundred bucks each month and explore unique opportunities. Drive for a ride sharing service a few hours a week, walk dogs, or take on freelance jobs if you have the skills.
Sell some stuff
One person’s trash is another’s treasure, right? Whether you have stacks of old books and records you don’t want, boxes of baby clothes, furniture, and toys, or old crafts, there’s probably a market for it. Just list your items on digital marketplaces and wait for the offers to roll in. Keep the funds tucked away in your emergency savings account at your credit union and watch it grow.
What if there’s no time to save and you need the money now?
According to financial site Bankrate.com, 27 percent of adults have no emergency savings. For those who do have money set aside, only 44 percent of adults could pay for an emergency expense of $1,000 or more out of their savings. So, what are your options?
Five tips for paying unexpected expenses
1. Ask about a payment plan
Depending on the type of expense, you may be able to work out a payment plan. There may be programs available that allow you to pay what you owe in weekly, biweekly or monthly increments, with or without interest. It never hurts to ask!
2. Put it on a credit card
Ideally, you only want to charge as much as you can afford to pay off within a reasonable period.
3. Apply for a personal loan
Talk with a Canopy Credit Union member advocate about the available options for personal borrowing. You could cover the initial cost with a loan that you pay off in manageable increments over time.
4. Consider a home equity loan
If you’re a homeowner, you may be able to secure a home equity loan (HELOC) or line of credit that would allow you to tap into your home’s equity to fund an emergency expense.
5. Talk with a Canopy financial coach
Make an appointment with a Canopy Financial Coach to learn more about how to set yourself on a path to financial security and stability. Develop a plan that works with your situation and resources that set you up for success!
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