COLUMN: Save $1,000 in 10 months

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By Theresa Howard

Do you have $1,000 set aside for emergencies? If you already do, you could probably use another $1,000 in that account. Experts recommend keeping at least three months expenses in a reliable, liquid account.

Get started with these four steps.

1. Find a safe place to save your money. You will want to save your money in an account that you can access easily in case of an emergency. For quick access, choose a traditional savings account or a short-term certificate-of-deposit rather than a U.S. Savings Bond or mutual fund. Most importantly, do not keep savings in a checking account, which pays no or low interest and is too easy to access.

2. Save $100 a month. If you are already saving $100 a month, great! If not, you need to either earn $100 more a month or cut back in order to find that $100 to save. It can help to pay yourself first and save the $100 at the beginning of the month instead of waiting to see if you have money left over to save at the end of the month.

3. Automate your savings. Setting up an automatic way to save is one of the best ways to save. Once you set it up, then it happens without having to think about it. Every pay period, ask your employer to deduct $100 from your paycheck and transfer it to a savings account. Or, ask your bank or credit union to transfer $100 from your checking account to a savings account every month.

4. Watch your savings grow for 10 months. The final step is to sit back and watch your savings grow. The key is not to touch the money unless you have an emergency – that’s what the money is there for after all.

Once you have at least $1,000 in your emergency account, continue your savings success and continue to build your emergency savings or apply that money to a new savings goal. For more tips and advice enroll to be a saver at www.kentuckysaves.org.