Knowing how much you should have in your savings can be difficult to identify. The standard for any savings account is 3 to 6 month's worth of expenses. In this article, the financial experts at Lampco will walk you through calculating a savings goal for those unexpected expenses!

CALCULATE THE COST

Ready to find out what your savings account should look like? First, you'll want to sit down and add up all your montly fixed costs, like your mortgage/rent, daycare, insurance, utilities, loan payments, and credit card payments.

You also want to write out your montly variable costs, like gas, groceries, and take-out. Consider which variable costs you could reduce or cut during a financial emergency, like a job layoff. Cutting costs will help to extend the life of your savings account so you can stress less. 

After you have calculated your monthly fixed and variable expenses, it's time to translate those into your total savings goal. If you are wanting to set a 6 month savings goal, simply multiply the total of your monthly fixed and viarable expensed by 6. For example, if your fixed and viarable expenses total $3,000 a month, you will want to have a totals savings goal of $18,000, or $3,000 times 6.

If you're starting from scratch or you've been saving forever, and you feel like you will never reach your goal, don't be discouraged! Saving large amounts can seem like an impossible task, but the truth is, ANY amount saved is a win. Whether it's $20 a week or $200 a week, you're making your way to financial security dollar by dollar. 

Lampco's Kasasa Saver, Member Savings Account and Club Accounts can help you reach your financial goals! Celebrating milestones in your saving journey can help to motivate you, but what happens after you hit your savings goal?

INVEST THE REST

Is there such a thing as too much money in the bank? Well...kind of! If you have reached your savings goal of 3 to 6 months' expenses, a solid emergency fund, and you still have leftover money every month, it is time to consider investing into higher yeilding accounts.

Investments are an important tool to help you earn interest income on your own money. Lampco is proud to offer Money Market Accounts, Share Certificate of Deposits, and Individual Retirement Accounts (IRAs) so you can maximize your investments.

LAMPCO TAKE-AWAYS

• Calculate 3 to 6 month's worth of expenses to figure out how much you need to save in total. 
• Every dollar saved matters.
• A savings or investment account is an important asset, choose wisely.
• Invest your extra money.

Lampco is proud to be your community credit union! Stop by and open your savings or investment account today!