Identify Your Needs

How do I create an emergency fund?

You never know when an emergency will strike — your car might break down, your child may need medical attention or your spouse could get laid off. While it’s not easy to think about these things, it is necessary to prepare for them.

You can offset some of the financial burden by putting aside money for such unexpected events. It is generally recommended that you have three to six months of living expenses readily available for emergencies. If this seems like a lot of money, don’t panic — it can be done. Talk to your Raymond James financial advisor and follow this simple advice.

Review your budget

Add a category for your emergency fund to your budget and start saving. Don’t have a budget? Now may be the perfect time to create one. Talk to your Raymond James financial advisor — he or she can help you get started.

Save first, spend later

Don’t give yourself the opportunity to spend excess cash. Instead, have funds automatically deducted from your paycheck.

Cut corners

Do you need to eat out every night? Can you reduce your cellular calling plan? Review your monthly spending and find cost-saving areas.

Evaluate your current investment allocation

If you haven’t already, consider allocating money to cash savings.

Once you have a savings plan in place, decide how your emergency fund will be invested. For an emergency fund, it’s important that you do not tie up all your cash in long-term investments. Instead, focus on more short-term alternatives such as the cash management programs offered through Raymond James. These accounts provide for quick and easy access to cash, and you won’t risk penalties for early withdrawal.

Elite Investment Accounts combine a full-service investment account with a comprehensive cash management program.

Ready Access Accounts¹ enable you to borrow against the value of your eligible securities almost instantly while continuing to receive dividends and interest from investments.

The Client Interest Program acts as a short-term depository for cash awaiting investment.

Raymond James Bank² offers several cash management alternatives such as money market accounts, sweep accounts and interest-bearing checking/savings accounts.

Of course, there are many other options available to you. Contact your Raymond James financial advisor today. If you’re not already a client, use the Office Locator to find our office(s) nearest you.

¹The Ready Access Account is a margin account and may not be suitable for all investors. Borrowing on margin and using securities as collateral may involve a high degree of risk. Market conditions can magnify any potential for loss. If the market turns against the investor, he or she may be required to deposit additional securities and/or cash in the account. The securities in the account may be sold to meet the margin call, and the firm can sell the investor’s securities without contacting them. The interest rates charged are determined by the amount borrowed. Please visit sec.gov/investor/pubs/margin.htm for additional information.

²Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. are affiliated with Raymond James Bank, a federally chartered savings bank. Unless otherwise specified, products purchased from or held at Raymond James & Associates or Raymond James Financial Services are not insured by the FDIC, are not deposits or other obligations of Raymond James Bank, are not guaranteed by Raymond James Bank and are subject to investment risks, including possible loss of principal invested.