What is an Emergency Savings Fund?
It's a special account separate from your other retirement, bank and savings accounts that can help cover the costs of those unexpected expenses you face every once in a while.
How much do I need to save?
Save as much as you can. Even small amounts will gradually build up your cash cushion and help you feel more in control of your finances. Saving just $40 every month adds up to $240 in six months.
Want a simple, automatic way to save?
Making after-tax contributions to the UPS 401(k) Savings Plan is an easy way to build your emergency fund. Contributions are automatically deducted from your paycheck so you can "set it and forget it."
| Type of savings | After-tax  |
| How you save | Automatic deductions from your paycheck; and your contributions may be eligible for SavingPLUS matching contributions |
| Savings growth potential | Depends on the performance of your selected investments |
| How withdrawals are taxed | Income taxes are automatically deducted from the investment earnings portion |
| Early withdrawal penalties | Withdrawals before age 59½ are subject to a 10% penalty on the investment earnings portion |
| Ease of withdrawals | Receive money within two business days if your 401(k) Plan account is linked to your bank account |
| Use of funds | Can be used for any need, but consider reserving just for emergencies |
Ready to start saving?
Great choice! You'll soon be on your way to building an emergency fund in the UPS 401(k) Plan.
START SAVING TODAY!Still not sure?
Learn more about why you need an emergency fund. Visit our full emergency savings resource library.
What UPSers are saying...
"I was at a friend's house and accidently dropped my cell phone into the pool. I used the money in my emergency fund to buy a replacement phone the same day and felt proud that I didn't have to ask my parents for help."
What UPSers are saying...
"I really love the secure feeling of having extra money available in case something goes wrong. My emergency fund is a wonderful safety net–kind of like insurance for anything lurking around the next corner."
What UPSers are saying...
"My mom, who lives in another state, fell and broke her wrist and I needed to go help her out. If it wasn't for my emergency fund, I would have had to put the travel costs on my high interest credit card."
What UPSers are saying...
"When our dog was having trouble breathing, we didn't hesitate to rush her to the vet. The $800 bill would have added to the emotional stress we were feeling if it wasn't for our emergency fund."
What UPSers are saying...
"We woke up shivering on the coldest morning of the year and realized our heater was broken. Our emergency fund covered the rush service call and turned an emergency into more of an inconvenience."
What UPSers are saying...
"I hit another car in the parking lot and caused a fair amount of damage. I had insurance, but forgot about the $500 deductible! My panic melted away when I realized my emergency fund could take care of that."
SURVEY SAYS…
Are you currently saving for emergencies?