Many people like surprises. A surprise gift, a visit from an old friend or family member, these are welcome surprises. However, no one likes the kind of surprise that disrupts your life and costs you both time and money. This is why the Emergency Fund account was created.
What is an Emergency Fund?
An emergency fund is just what it sounds like: a fund or account that saves money for any potential emergency that may spring up. It saves you a designated amount of money each month, directed into a separate account. This way the money is there for your emergency needs, but out of site and out of mind, safe from any whims that may come up. With these accounts, we suggest declining the usual debit or ATM card attached to the account, making it harder to withdraw your money unless you really need it. That way, when a true emergency arrives, the money is still there for you, and a trip to the bank will gain you access to it. While this may seem a sort of a 'you can't have any of your money'; account, this is one of the best ways to save for a potential emergency and to make sure you're covered in time of financial need.
We can also set up emergency funds in the names of loved ones and relatives, with access to these account to be joint, meaning the both of you would have to agree on access.
We can set you up with an emergency fund account to help you save for the rainiest of rainy day today, by coming down or by contacting us online.
Top 3 Savings Options
Saving money is the first step toward building a sizable emergency fund. We can help you evaluate your finances to find the best methods to set aside funds from your budget. That said, we often recommend some tried-and-true methods of saving money to our clients.
- Get a savings account: Placing your money in a savings account is good for several reasons. It's harder to spend money in savings, and funds are insured by the federal government. Most importantly, your money will earn interest over time.
- Consult a financial planner: Many people make budgets for their households, but not enough people seek the help of trained financial experts before making big financial decisions. Financial planners can evaluate your finances and make key recommendations to help you carve out greater monthly savings.
- Invest in mutual funds: While the stock market can be volatile, investing in mutual funds is typically pretty safe. That's because mutual fund investments are spread out over a large number of stocks. The gains from mutual funds can add up over many years. In the meantime, there are no penalties for selling your shares early.
River Rock Investments is dedicated to helping you find solutions that work with your current budget, so you can start tucking money away into an emergency fund. And we go beyond simply advising you to find a bank and open an account somewhere, working hard to make sure the plan for your emergency fund keeps your money working for you. We'll help minimize your risk while maximizing your return, just as we do with every financial product we offer. And you can rest securely, knowing that when an emergency arises, you're covered.
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"I wanted someone to help me sort through my mother's finances before we moved her into assisted living. I found River Rock through a friend, and their advice and guidance have helped us all though a very difficult time. I would recommended them for any financial and investment guidance." — Thomas Riverton, Aurora CO.
"River Rock was able to help me find a way to start saving for retirement when I didn't think where was any real way of doing it. I now have a nest egg started and fell I can relax, if only a little bit!" — Anne Eury, Detroit MI.