Emergency Fund

Buying a home is not inexpensive. You already know about the mortgage, down payment, insurance, and a variety of fees. But what about the ongoing cost of your home? Even if your inspection is great and your purchase goes smoothly, that doesn’t mean there won’t be unexpected costs that come up. How can you maintain an emergency fund for problems without turning to credit card debt or borrowing money from family? Here are a few options to consider that won’t create unnecessary stress. 

Set a Monthly Goal for Savings

The best time to save for an emergency is when there is no emergency in sight. Set realistic goals to save a certain amount from your paycheck each month. If your employer offers direct deposit, split that deposit between a savings and checking account so the money is automatically put away for you. Start with an amount that will feel comfortable for your budget. 

Use a Money-Saving App

You can also use the “round up” method to save some extra money. When you pay a bill or make a purchase, you pay the correct amount, but you record the next dollar amount up in your records. At the end of the month, you’ll have some extra money in your account that you can transfer to your savings. And you don’t have to do it alone if math isn’t your best subject. There are a number of apps that will automatically round up every purchase you make and set aside the spare change, and your financial advisor can help you plan to meet your financial goals. 

Get a High-Interest Savings Account

Your money can also work for you. Set up a high-interest savings account to help you reach your financial goals. High-yield savings accounts can earn money for you as you save. Talk to your bank or look into additional banking options to see what might work for you. Look for the interest rates, required initial deposits, minimum balance, fees, and more to determine which account will work best for you. 

Save Your Tax Refund

Do you expect to get a tax refund? It can be tempting to splurge with what feels like free money, but saving it in your emergency fund will be a much better use of those dollars. We understand the goal of paying taxes is to try to break even, but getting a refund has become a valuable advantage for a lot of people.

Are you ready to buy your next home? 

Maison Atlanta & Co is a full-service real estate company with over 100 years of combined experience buying and selling homes in any market. As a member of Compass, Maison Atlanta and Co has innovation and technology at our fingertips to help our clients meet and exceed their real estate goals and expectations. Call us today.