Financial experts recommend having an emergency fund of between three and six months of living expenses. However, 40 percent of Americans cannot cover even a $400 unexpected expense, and 25 percent have no long-term retirement savings at all, according to a Federal Reserve report.
A CNBC article cites two primary reasons that people are unprepared: debt and inability to adopt the savings “habit.” One way to set aside money for emergencies or long-term goals is to do it automatically through payroll deductions. You can direct a small portion of your regular paycheck into a separate checking, savings, or emergency account at your bank or credit union. And, for the ultimate long-term savings goal — retirement — participate in the Retirement Savings Plan of the Presbyterian Church (U.S.A.) through employer payroll deductions.
Not sure how to set up or add to your emergency fund? These resources can help:
Find out more about the Retirement Savings Plan. If you have questions, call the Board of Pensions at 800-773-7752 (800-PRESPLAN), or call Fidelity Investments, the plan record keeper, at 800-343-0860 (mention plan #57887).
If your employer offers the Retirement Savings Plan and you’re not contributing, ask how to get started.
If your employer doesn’t offer the Retirement Savings Plan, ask them to contact the Board of Pensions for more information. All employees who work for a PC(USA)-affiliated employer are eligible to participate in the Retirement Savings Plan if their employer offers the plan to them.