You probably already know how important it is to save for a rainy day. Having sufficient funds in a separate account for those times when you have an emergency is critical. This is especially true if you have a family.
However, with so many expenses coming your way it can be difficult for you to save for a rainy day. This is understandable. You have to make a conscious decision to save if you want to have enough money to spend in an emergency.
Here are some tips for getting your emergency fund started.
Take Baby Steps
You may have a goal to save a large amount. However, this can be overwhelming especially if you can’t commit to putting a lot of money into your emergency fund all at once. Starting small is the best way to ensure that you stay consistent.
Having smaller goals at the outset will help you to better navigate your financial situation so that you can get your emergency fund off the ground.
You can set a goal to save a certain amount from your paycheck every week or month. Create a separate bank account for your emergency fund so that you can set it and forget it.
You can take things a step further by doing automatic deductions from your main bank account where your salary is deposited so that things are completely automated. This is one of the best ways to make sure you have money for things such as emergencies, medications, CBD for health, vacations, or buying a new car or home, an emergency fund can be used for just about any goal.
Make Use of Extra Money
There may be times when you come into extra money. This may be through tax refunds, bonuses from your workplace, or Christmas gifts that you get from others.
Whatever it is, whenever you get this extra cash you should think about putting it into your emergency fund. Over time it will all add up and you will see that your funds grow over time.
If you finish paying off your credit cards or a car loan then you can take the money that you used to spend on these things and place it in your emergency fund instead.
Your budget will be the same and your emergency fund will start growing.
Earn and Save More
It can be very beneficial to get a separate job to help boost your emergency fund. With so many opportunities available now you can get a part-time job that you work completely online in the evenings after your regular day job.
You can also choose to start a business to help increase your emergency fund.
Another important thing you can do to get more money for your emergency fund is to eat at home more often and to get out of the habit of eating out. Create a shopping list before you go and take into account all that you will have to spend. This will help keep you on track.