With your credit union's online banking, it's easy to set up your emergency fund online. An emergency fund is great to have for life's most unexpected moments. With it, you will prevent yourself from spiraling into debt over a small accident, or even a big one! Follow these steps to get things set up, and start saving!
Open a separate Club Account under your regular account.
Go to online banking. Click on the Create New Share tab. (The emergency fund will be separate from your regular savings.)
Then select the Account Type. The All Purpose Club is a good choice for an emergency fund.
Choose a name, and start funding your account.
Determine a certain amount that you can contribute every month.
Figure out your expenses for one month. Then multiply that number by three. The goal is at least three month's worth of expenses in an emergency fund, to be safe. Determine how much money you can afford to contribute every month, and figure start building your account.
Schedule automatic transfers to the account.
Once you determine the dollar amount that you will contribute each month, make scheduled payments to the emergency fund. This way, you won't have to remember to contribute to your emergency fund every month.
Watch it grow!
Once your account grows to be at least 3 months' worth of expenses, you are safe! Once you get to this point, keep making monthly contributions to your fund to give yourself extra financial support in case of a major emergency.