Have you ever had one of those months where unexpected expenses seem to pile up? The water heater stops heating, the dishwasher stops washing, and your family ends up on a first-name basis with the nurse at urgent care.

Bad things can seem like they come in waves, and that’s when an emergency cash fund can come in handy. But did you know many people don’t have sufficient savings to handle the unexpected?

One survey found that nearly 25 percent of Americans have no emergency savings.¹ Another survey discovered that 40 percent of Americans said they wouldn’t be able to comfortably handle an unexpected $1,000 expense.²

How Much Money?

So, how large should an emergency fund be? There is no “one-size-fits-all” answer. The ideal amount may depend on your financial situation and lifestyle. For example, if you own a home or have dependents, you may be more likely to face financial emergencies. And if a job loss affects your income, you may need emergency funds for months.

Bad things can seem like they come in waves, and that’s when an emergency cash fund can come in handy. But did you know many people don’t have sufficient savings to handle the unexpected?

Coming Up with Cash

If saving several months of income seems unreasonable, don’t despair. Start with a more modest goal, such as saving $1,000, and keep adding to your savings over time. Setting up automatic monthly transfers into your fund is an easy way to consistently grow your account.

Once your savings begins to build, you may be tempted to use the money in the account for something other than an emergency. Try to resist that urge. Instead, budget and prepare separately for bigger expenses you know are coming.

Where Do You Put It?

You have many options when it comes to where you put your money. If you’re interested in short-term investment certificates or agreement accounts, Orchard Alliance can help.

With an Orchard Alliance investment certificate, you earn a fixed rate of return from one to 10 years, and your investment is used to provide loans to Alliance churches and ministries so they can purchase buildings, buy land, or renovate their current space.

An agreement account is another option that can be established for yourself or your family. It earns interest and also provides loan funds to Alliance churches and ministries. Agreements have no minimum term, and funds are available on demand.

Depending on your goals and the amount you have saved, a combination of both options may be a good fit for you. Visit orchardalliance.org/rates for a full listing of investment certificate and agreement rates.

Unexpected expenses are a part of life. Having an emergency fund may help to alleviate the stress and worry that can come with them. When weighing your options on where to keep your emergency funds, consider all aspects of your investment returns. There are financial returns and spiritual returns. When you invest with Orchard Alliance, you get both.

¹MarketWatch.com, 2020 ²Bankrate.com, 2021