You know that feeling — wondering if your bank balance will cover the next unexpected bill, mentally calculating what’s left after rent, groceries, and a few online orders. It’s no wonder so many of us obsessively check our bank apps, refreshing to see if payday has finally landed or if that pending payment has gone through.
But peace of mind with money isn’t just about what’s in your account right now — it’s about having a proper safety net. A buffer. Something in place that quietly works in the background, helping you feel more in control. That’s where small habits and smart choices like personal term deposits by Illawarra CU can start to make a big difference — without requiring you to be glued to your screen every day.
Here’s how to build a financial cushion that does its job, even when you’re not thinking about it.
Start With a Target, Not a Number
Most advice around building a safety net tells you to aim for three to six months of expenses. And while that’s solid guidance, it’s not the only way to think about it. For some people, even $500 in savings can dramatically reduce stress. For others, peace of mind might mean having enough to take a few months off work if needed.
Rather than chasing a generic figure, consider what “safe” looks like for you. Ask yourself:
- What kind of emergencies have you faced in the past?
- If you lost your job, how quickly could you bounce back?
- What are your non-negotiable monthly expenses?
Use that as your starting point — and adjust as your life or income changes.
Separate Your Safety Net From Everyday Spending
The key to building a financial cushion is treating it like a bill you have to pay — not an afterthought when there’s money left over. Even a small, regular transfer into a separate savings account helps you build momentum.
But to really stop that urge to keep checking your balance, your savings need to live somewhere away from your everyday transaction account.
Some simple options:
- Set up an automatic transfer the day after payday
- Rename the account something like “Emergency Only” or “Safety Net”
- Use an account without a linked debit card to make it harder to touch
When your emergency fund feels out of sight, you’re less likely to dip into it impulsively.
Make Your Safety Net Work Harder (Without Risk)
Once you’ve built a bit of savings — even just a few thousand dollars — you might want to explore places where it can quietly earn more without locking it away completely. High-interest savings accounts are a common option, but don’t overlook fixed-term alternatives.
That’s where term deposits come in. They’re stable, predictable, and usually pay better interest than standard savings accounts — especially when you commit to a slightly longer timeframe. You don’t need to gamble or stress to get a better return.
You can even split your emergency fund — keep part of it accessible and put the rest in a term deposit. That way, your money works in the background while still being there if you need it.
Focus on Progress, Not Perfection
Financial advice often feels like all-or-nothing: save 20% of your income, have a six-month cushion, invest like a pro. But in reality, just getting started matters more than doing it perfectly.
If all you can spare is $10 a week — great. That’s still $520 in a year you didn’t have before. If you can skip one takeaway coffee a day and put that money aside instead, even better.
What’s more important than how much you save is that you build the habit — and trust yourself to keep showing up for your future self.
Learn to Trust the System You’ve Set Up
The end goal of a safety net isn’t just about the dollars in your account — it’s about the calm that comes from knowing you’ll be okay, no matter what life throws at you.
When you automate your savings, store your safety fund in a separate space, and give it a little room to grow, you can take a step back. You no longer need to refresh your app constantly or stress about every transaction.
