How to Build an Emergency Fund
Don’t you just hate when you think you are getting along in life just fine, and then all of a sudden….a curve ball is thrown your way. Maybe your car breaks down, your business need a new laptop or your cell phone breaks…something occurs that requires you to come up with cash, fast!
Now you are panicking trying to come up with a way to make up that money. Well, how much simpler would life be if you already had that money stored away?
I believe that it is extremely important to have an emergency fund on hand, in case things like this happen. However, keeping extra money on the side isn’t always the simplest thing to do. That is why I am going to be sharing with you a few of my favorite tips and tricks for building up an emergency fun, even when maybe you are living paycheck to paycheck and don’t have extra money to put up.
Save on everyday needs as much as possible: When it comes to purchasing things that you need everyday like food and gas, you should try to save as much money as possible doing so and then you are able to take that money you are saving with your purchases and put it up for savings. I highly recommend using things such as reward cards and coupons to save on these essentials; you’d be surprised just how much you can save if you shop smart. Some of my favorite ways to do this are the Kroger Card and using an app such as Ibotta.
Have a piggy bank: I am one that always has a ton of change everywhere, in my car, in my house, everywhere. Save that change! Most people don’t realize just how quickly change can add up. I always have a piggy bank on hand and any amount of spare change that I get into my hands goes into that jar. You could even make it a family savings jar and have everyone chip in with their spare change as well.
Save gifted money: A lot of people will gift you money for birthdays and the holidays, as hard as this may be not to run out and treat yourself to something nice, try putting up at least part of that money. Maybe put up half and then go get yourself something with the other half. This way you are not taking away from your regular income but you are still putting a bit of cash away.
Put up ANYTHING you can: Put up any amount of money that you possibly can. Most times, you are able to squeeze out a spare dollar or five dollars a week. It may not be much, but having something put up is better than having nothing at all. I know it may be hard to come up with it, but try to put at least some sort of money into your fund every week.
Don’t give up: A lot of times people get a bit of money saved up and then they use it to buy new clothes, or pay for a nice dinner…try to refrain from doing this! Be sure to put that money up each week and do not touch it until you have a real emergency to pay for. Just think to yourself how horrible it would be if something were to happen and you didn’t have that money to fall back on.
Remember it is really important to have that emergency fund… no matter what your current income is because you never know how big or small of a curve ball life will throw at you. If you’ve struggled in the past coming up with an emergency fund, I hope this helps you to stay strong and build up as much money as you possible can!
A blog post by Mike Fraser, We are the outside-the-Box, professionals here to give you the best change, solutions and strategies to develop your business idea. I can take your dream and help you make it an attainable goal. Our life experience and formal education has led us to the following conclusions:
Everyone has an amazing idea. It’s the execution that gets the job done. We are your executioner. Brussels sprouts do not taste that great, no matter what my mom says.
Our team is made of all A personalities. We don’t care who gets the credit – We just want to win.
You will not regret giving us the opportunity to facilitate, compose and engineer the growth of your business. A professional prepared business plan can not only help your start-up company to obtain venture capital, traditional loans but can also help to maximize the efficiency and profitability of your business.An optimal business plan can be your road map to a successful business. We thrive on building relationships and take great pride in the company we keep.