Saving an emergency fund is an important task that most people unfortunately don’t think about until it is too late. Making sure to have a nest egg to fall back on in an emergency can mean the difference between having peace of mind and drowning in debt if there is an emergency.
There are a few things you can do to make sure you have the security you need if an emergency comes up:
1. Set a goal to meet each month
When saving is not easily done and your budget is tight, sit down and figure out how much you can afford to save each month. If you have a plan, you will be more likely to meet that goal.
2. Manage your budget
Keeping track of how much is coming in and how much is going out each month will make it easier to put cash aside and leave it there for a rainy day.
3. Keep you change
Change adds up quickly when you hold onto it! Instead of tossing those pennies put them in a jar and you will be cashing them in for a nice savings faster than you can imagine!
4. Save any extra money that comes your way
It is always fun to go on vacation or go shopping when unexpected cash comes in, but saving amounts such as your tax refund will add up and help build a nice base for you to use in case of an emergency.
5. Slash Your Budget
It can be difficult to cut things out of your monthly budget, but using tools such as a budgeting app can be helpful for seeing where you are over spending. Using tools like this can help you cut down your monthly spending and allow you the freedom to save money for your emergency fund.
6. Get a second job to supplement needed income
No one wants to think about having to get a second job. Working is very difficult and stressful at times, but having the second income may make it worth the extra work hours. If you need more income to breakeven, or even just have enough to put money aside for your emergency fund, getting a part-time position may be the right answer. Think about how good you will feel when you have all the money saved that you need in an emergency. In the end, the hard work is worth the reward.