How To Build Your Emergency Savings

Building emergency savings is a critical part of your financial toolbox. Since you never know when an emergency will pop up, it's important to start putting some cash in your emergency savings, even if it's just a little bit per month.

Coastal's very own Warren Murray and Amy Charette are here to shed some light on the subject!

How You Can Better Manage Your Cash Reserve

The most important attribute of a cash reserve is its availability in time of sudden need. And while a federally insured savings account is considered one of the safest places to put money being reserved for emergencies, when interest rates are low, you may want to consider other alternatives.

When selecting ways to invest your cash reserve, you should balance your liquidity needs with potential returns. Short-term investment instruments, such as Treasury bills, certificates of deposit, and money market mutual funds, can provide you with the liquidity needed to meet expected and unexpected expenses and to increase your short-term investment income.

By actively managing your short-term cash reserves, you can provide a means of saving for the future. You can use this money to increase your net worth with little or no additional risk to your principal. It’s important to remember that since income and personal circumstances are subject to change, you should conduct a periodic review of your cash reserve and its structure.

The Advice You Need, When You Need It!

Connect with one of our skilled CFS* Financial Advisors to talk more about how to save in times of emergencies and learn what your best options could be.

Connect With A CFS* Financial Advisor

Note: Treasury bills are backed by the full faith and credit of the U.S. government as to the timely payment of principal and interest.

Certificates are insured by the National Credit Union Administration (NCUA) for up to $250,000 per depositor, per insured institution in interest and principal.

Money Market Funds are a type of mutual fund (investment) and are not the same thing as Money Market Savings Accounts, which are insured. Money market funds are neither insured nor guaranteed by the National Credit Union Administration (NCUA) or any other government agency. Although money market funds seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in mutual funds.

Mutual funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus before deciding whether to invest.