My savings was initially for an emergency fund, but I decided to rely on a credit card if I should come across an emergency. As of now, my savings will be kept, and used to host my annual bills. This will mean that when a significant annual bill (such as telephone) hits my account, I will draw from my savings to cover the bill without going into debt. This will mean that my savings will receive a deposit into my account monthly, and since I have signifiant bills that hits me throughout the year, my savings will never go beyond $1,000. This is important due to asset limits imposed by Social Security for my income.