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DM 60 - How To Save For Emergency Funds


Here’s some quick financial things you can do to start out 2023 right. Hey, it’s Jon, welcome to today’s Didactic Minute.


Today I wanted to give you just a couple of things that could maybe set your 2023 to be better than 2022; just a little bit financially and every little bit helps, as we know. So, I’ve said this before in our workshops that there are things you can do during residency and fellowship that can actually make a positive impact on your attending years and the rest of years of your career, of your life – for you, for your family. And they can be little things, like building little habits. So let’s take this, for example.


Number one – as I’ve told you many times before – having an emergency fund is going to be critical for making sure you are set up for success and protecting the foundation of you. And so, when you look at an emergency fund, where is it? Don’t overcomplicate it. Just a savings account is fine. But I would recommend that if it’s going to be sitting there for a while, and hopefully it is because hopefully you have no emergencies, right now there are places you can get over 3 percent interest, which is great, in a savings account. So you want to look for a high-yield savings account. So a little tip: You want to go NerdWallet or bankrate.com – those two websites I think are pretty good for ranking and finding some of the high-yield savings accounts that are available out there. So, you don’t need to put your emergency fund in an investment account. Don’t worry about trying to get great growth because you need that money protected there when you need it. You don’t want to be fluctuating with the stock market. But if while it’s sitting there you can get good interest, then try to do that.


And so those are the things you want to be looking for how to save into an emergency fund. Do this this month. This can be part of your New Year’s resolution. Just set up an automatic transfer from your checking to that savings. Start it out with something that you think is going to hurt a little bit and what I bet you’ll end up finding is within 3 months, you won’t even notice it and you will be able to look back and say, "Hmm, maybe I could bump that up a little bit," and you’d be surprised at what you can accomplish in two or three or four years. Remember this: People often overestimate what they can accomplish in six months but they underestimate what they can accomplish in three years or five years. So, do something today to put yourself out on the right foot for 2023.


Hope that helps. We’ll see you next time.


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