We partnered up with 21 Savage to share some smart money tips and scholarship opportunities—all across the US.
And so our video series continues… with more 🔥 tips that can boost your money skills to Master status in no time.
Okay so, What’s an Emergency Fund?
Think of an emergency fund as a secret stash—the kind of money set aside for when bills come out of the blue, or life, like… happens. It comes in many different names: rainy day fund, emergency savings, SOS stash, but the concept is always the same.
This may seem overwhelming at first but, by using the 50/30/20 rule, saving up to $500 or more can be super straightforward. Once you get a hang of this tip, your bank account will thank you. Trust.
Fund Secured. What’s Next?
A few tips to make the most of that emergency fund.
1. Keep it in a high-yield savings account.
All savings accounts store your money, but not all savings accounts are created equal! The average savings account has an annual percentage yield (APY) of 0.06%, while some high-yield savings accounts offer APY’s of 1.0% or more—meaning your emergency stash can make you more cash, even in your sleep.
2. Don’t touch it!
An emergency fund is for—you guessed it—emergencies. These savings aren’t for those new Air Jordans, or that iPhone 12, no matter how much you want them. Remember, you’ll be thanking your past self when you seriously need this money. So, as tempting as it may be to dip into that cash, make sure to set it aside for urgent needs only.
3. Serious financial surprise? You got this.
Whether it’s car troubles, a broken laptop, or unexpected medical bills, don’t stress. Tap into your emergency fund without any guilt—because these are the curve balls you prepared for. And, after the fact, we’ll be there to help you build that stash back up—every step of the way.
Having an emergency fund might seem obvious but, when you do it right, it could be a serious life-saver. Double-check with yourself and see where your finances are. Do you already have some money you can put away? If so, perfect: set that aside so you can level up your money game. If not, start today with loose change! Being prepared for anything is the ultimate sign of being a money savage.
If you’re looking to master your money management skills, we got you. Learn more about our partnership at chime.com/21savage