Do you have money set aside for a rainy day? Many people wish they did, but simply don’t. You may feel like you don’t make enough money to save any away or maybe you just don’t know how to get started. If saving for an emergency is something you have always wanted to do, then take a look below at 7 easy ways to build an emergency fund so you too can enjoy the peace of mind of having a financial cushion. Here is how you can get started.
1. Start small.
Remember that small amounts eventually add up to something big. Start by trying to set aside 5% of your weekly paycheck. This may not seem like much at first, but over time it will add up into something substantial! You can also increase this percentage as you become comfortable.
2. See what you can sacrifice.
Can you give up that muffin and coffee you stop for each morning? Or the soda you grab from the gas station each afternoon? While you may not want to give these items up forever, can you do it for a few weeks? Once a week? See what you can sacrifice and put the savings into your emergency fund. You might be inspired to give up more once you see it add up!
3. Invite a friend to save with you.
Do you feel like doing things with a partner can make it more bearable? If so, bring a friend in on the action. Invite a friend who is in the same boat to try building an emergency fund too. You can compare tips, strategies, and continue to motivate and support each other.
4. Invite your family to help.
Building an emergency fund can be a family activity that everyone partakes in. When building your emergency fund, there is nothing wrong with letting your family know so spending can be done minimally. Let them know that an emergency fund is for the betterment of the whole family and will benefit everyone if it is ever needed.
5. Snip those coupons.
Try applying coupons to your weekly grocery bill. Take the savings and place it in your emergency fund. Even if it is just $10 a week that you save, that adds up over the course of a few months! Challenge yourself to use more coupons each week and increase your savings.
6. Sell what you no longer use.
Now is the time to sell clothing, electronics, and furniture you no longer need. Sell these items in a yard sale, online, or to consignment shops. Take the money that you make on these sales and add them to your emergency fund. It is a quick and easy way to give it a boost.
7. Go on a spending fast.
Try not to spend any money for 24 hours to one week. See if during this spending fast if you can put a little extra in your emergency savings. The next time you fast, see if you can stretch it an additional day or two.
Building an emergency fund may seem like a challenge, but the truth is it can be done. Give these tips your consideration and see if you can get a jump on the emergency fund you deserve.