What’s an emergency fund?
Like the name suggests, an emergency or rainy-day fund is a pot of savings to help you deal with life’s unexpected events. Whether it’s a broken washing machine, urgent travel requirements or health concerns, having an emergency savings fund means you’re not left short of cash or having to dip into your other savings to cover unexpected expenses.
How much do I need in my emergency fund?
Ultimately, it really is up to you. We think the beauty of an emergency fund is that it’s never too late to start, and every bit helps! As long as you’re contributing regularly, you should have a solid nest egg after 12 months that you can continue to grow in your bank account.
For example, putting aside $20 a week for a year means you’ll save $1,040, which is a great start. You could think about upping payment amounts when you receive your next pay rise, or even contribute your tax return to your emergency fund each year. It’s all about finding what works best for you to help give you peace of mind.
Pro tip: Everyone’s situation is different, we know that. Check out our handy savings calculators to see how much you could save for a rainy day with regular contributions depending on what suits your budget/household.
Set and forget: as easy as 1,2,3.
Take advantage of these 3 UBank tools and start building a solid emergency fund today. A little bit of work now means you’ll be in a better place financially in years to come.
- It’s easier to save when the hard work is done for you. By setting up your emergency fund in our competitive interest USave savings account, and using a linked USpend transaction account for everyday spending, you could unlock our bonus interest rate if you meet the bonus rate criteria. Meaning your savings will work even harder for you.
Pro tip: Want to know more about the perks of transacting with us? Here’s something we prepared earlier! Being a UBank cardholder is where it’s at.
- Free2Spend is our awesome in-app tool that tells you exactly how much you can spend each day, after your expenses (including your emergency fund) are taken care of, so you can stay on track with savings while living your life.
- Our innovative Sweep Technology means you can have most of your money earning maximum interest in your USave, with everyday spending money automatically swept (transferred) into your USpend ready for when you need it. Pretty cool, right?
We all face challenges at some point, but by thinking ahead and regularly putting money aside for a rainy day, you’ll be able to rest easy knowing that when faced with an emergency, at least the financial side of things will be taken care of.