Emergency Savings

Preparing for the unexpected

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Emergency Savings

Don't be caught off guard

Life is full of unplanned surprises, but you can still be prepared for the unexpected by having at least 3-6 months' worth of essential expenses saved in an emergency fund. Emergency funds create a financial buffer that can keep you afloat in a time of need without having to rely on credit cards or high-interest loans.

When a sudden expense pops up, it can often feel like an emergency, but to avoid unnecessarily dipping into your savings, ask yourself:

Is it unexpected?
Is it necessary?
Is it urgent?

*Open a Flourish Cash account,¹ fund it from your savings and checking accounts, then sit back. Flourish allocates your money to their FDIC-member Program Banks where it can earn more than 18x the national savings account average.^†

Emergency Savings First

Here are a few reasons why emergency savings should come first:

Peace of mind: Having a solid emergency fund in place can help you sleep better at night, knowing that you have a safety net in case of an unexpected expense.
Protection against debt: If you don't have emergency savings, you may turn to credit cards or loans to cover unexpected expenses, which can quickly spiral into debt.
Flexibility: With an emergency fund in place, you have more flexibility to make decisions about your financial future, such as taking on a new job or starting a new business.

How Much do I Need for Emergencies?

Your emergency fund should be liquid, meaning you need to keep it in a place where you can get to it easily and quickly...but to avoid the temptation, a place that's not too easy to access. Use this calculator to help determine how much you need to set aside monthly or as a lump sum to create an emergency fund.

Calculator

¹ A Flourish Cash account is a brokerage account offered by Stone Ridge Securities LLC. The cash balance in a Flourish Cash account is swept from the brokerage account to deposit account(s) at one or more third-party banks that have agreed to accept deposits from customers of Stone Ridge Securities LLC (“Program Banks”). The accounts at Program Banks pay a variable rate of interest

^†Federal Deposit Insurance Corporation, National Rate on Non-Jumbo Deposits (less than $100,000): Savings [SAVNRNJ], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/SAVNRNJ, 10/31/2019.

Need Help Saving?

Speak with one of our Financial Planners today! Sentinel can help you...no matter what life throws your way!