Many experts suggest having an emergency fund to cover at least three to six months of total living expenses. Having access to a ready reserve of cash will do wonders for your emotional well-being and prevent you from having to take on additional debt. Let’s get started!
STEP 1: Determine how much you can save
Start off by calculating your monthly expenses, including items like rent or mortgage, utilities, transportation costs, groceries, child care, etc. Don’t forget to use unexpected windfalls, like tax refunds or bonuses, to help speed up the funding process. Contributing whatever you can to your fund; even $20 a month will make a big difference over time.
STEP 2: Open an account
Since you want your money to be accessible, consider a High Interest Savings Account or perhaps a money-market account. Speak with your Scotiabank advisor to determine which high-interest savings account best meets your needs.
STEP 3: Schedule Pre-Authorized Contributions
Make it easy on yourself by scheduling automatic deposits to your emergency fund. Setting up Pre-Authorized Contributions (PACs) is simple, and chances are you won’t even miss the money. If money’s too tight for automatic deposits, try diverting whatever you can–sooner rather than later.
Ready to get started on your emergency fund? Visit your local Scotiabank branch to speak with a financial advisor. They can help you open an account and set up your PAC. You’ll be glad you did. Try our interactive PAC calculator to see how your savings can grow.
Legal Disclaimer: This article is provided for information purposes only. It is not to be relied upon as investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and The Bank of Nova Scotia is not responsible to update this information. All third party sources are believed to be accurate and reliable as of the date of publication and The Bank of Nova Scotia does not guarantee its accuracy or reliability. Readers should consult their own professional advisor for specific investment and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.