3 Reasons I’m Boosting My Emergency Savings Now

Find out why increasing your savings now could benefit your finances.

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Key points

• Emergency savings can help you get out of a difficult financial situation.
• You may want to increase your savings now if you can afford it.

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If you have extra money to put aside, it’s never a bad idea to do so. Regular savings contributions can accumulate and help you when you need extra funds. Should you increase the amount of money you save? Maybe. Find out why I’m boosting my emergency savings.

It took me many years to become a regular saver. Although I have always been very careful with my money, there have been times in my life when I was not saving regularly. Currently, regular savings are essential and part of my financial plan.

I make sure I don’t miss saving money by automating the savings process. Every two weeks, the money is automatically transferred from my current account to my savings account. With this method, I am consistent and I save time.

I recently updated my recurring transfers to increase the amount of money I save. Over time, this will increase my savings and help me feel more confident about my financial situation.

Here are three reasons why I am backing up my emergency fund savings.

1. Everyday prices go up

We have all seen increases in the cost of everyday products and services. Gas, groceries, and basic necessities are getting more and more expensive, and every little price increase impacts our budgets and, in turn, our bank accounts.

Although I can continue to buy what I need right now at higher prices, those prices could be even higher in the months to come. For this reason, I want to save more money now. If I need to dip into my emergency savings to cover the cost of my daily expenses in the future, I can.

2. I will be less likely to make unnecessary purchases

When I leave extra money in my checking account, it feels like a welcome invitation to spend it. I have a feeling that I am not alone with this. To make sure I don’t spend a lot of money on unnecessary purchases, I like to transfer extra funds to a separate savings account. Increasing my regular savings contributions will make me less likely to spend money carelessly.

3. My future self will appreciate it

I regretted spending too much, but I never regretted having money in my savings account. Life can change quickly after just one event. Even though I feel safe and have little need for my emergency fund now, my situation may change. If this happens, my future self will be grateful that I took the time to build my emergency savings today.

Should you boost your savings now?

You may be wondering if now is a good time to increase your emergency fund savings. If you can do that, it’s not a bad idea. Even a little extra money can add up and make a difference later.

Do you find it difficult to save regularly? Consider setting up automated transfers to save regularly. You can choose the savings frequency (weekly, bi-weekly or monthly) and the amount to transfer. This will make it easier to save consistently and mean less work for you.

It’s never too late to change the way you manage your money. Check out these personal finance resources if you’re looking for more ways to improve your financial habits.