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February 19, 2021

Saving for Emergencies

If there’s anything 2020 taught us, it’s to expect the unexpected. That’s why building an emergency fund – either for the future or to help you through the current pandemic – is so important. Consider it your safety net.

Financial experts recommend saving enough to cover at least three to six months of necessary living expenses. It may sound like a big number, but think of it as a marathon, not a sprint. There are ways to make saving more manageable — such as setting an achievable goal of saving $500 to $1,000 – and building from there.

To help you grow your emergency fund, consider this small step.

Small Step: Know How Much You Need To Have in Your Emergency Fund

Total up your recurring, necessary monthly expenses – things you must pay or can’t do without. Consider these examples:

  • Housing – your mortgage or rent, property tax, utilities
  • Transportation – your car loan or lease, gas, insurance, maintenance, commuter fares
  • Groceries
  • Health care – your monthly premiums or out-of-pocket costs
  • Childcare – daycare, tuition, fees
  • Loan payments and other obligations – credit card payments, student loans, child support, life insurance

Learn more about how much to save, how to find the money, and how to create an emergency fund in this 12-minute on-demand mini workshop, “Creating a Rainy Day Fund,” from our recordkeeping services provider, Fidelity.

Attend Workshop

Motivated to do more?

If you have an ELCA retirement plan account with Portico:

If you have ELCA-Primary health benefits with Portico:

  • Check out the Financial course on Being our video learning platform. In lesson 2, “Savings: Why. How. Now.” Chris Farrell explains smart ways to save so you feel prepared to weather a financial emergency.

If you’re experiencing a financial emergency:

This material and any opinions are for educational purposes only. Information presented shall not be construed as offering or disseminating specific financial, retirement, asset protection, tax, or legal advice.