Setting up an Emergency Fund Should Be a Primary Goal
No matter where you are in life, there's always the possibility of getting hit with an emergency. Your car could break down tomorrow. The hot water heater might blow. Alternatively, you could suffer a medical issue or injury that prevents you from going to work. The only way to protect yourself from this type of situation is to create an emergency fund that you won't touch until a real emergency strikes.
There's still time if you haven't created an emergency fund yet. You can start today and have a good amount of funding built up in a very short amount of time. The following are some tips that you can use to help create your financial emergency fund blanket so that you can get out of a jam if one arises.
1. Figure Out Your Disposable Income
The first thing you must do before you try to save an emergency fund is to figure out your disposable income. That's the only way you'll be able to come up with realistic financial goals you can meet. Your disposable income is the amount of money you have left after you pay your bills. You can calculate that figure by subtracting your monthly expenses from your monthly income. Once you do that, you should then subtract the money that you might need for gas, food, recreation, and any other extras you can think of. The figure that's left is the figure that you can use as your goal amount to save and put toward your emergency fund.
2. Set a Goal You can Commit to
Next, you must make sure that you are comfortable with the figure that you got from your calculations. You should only set an amount that you can commit to every time you get paid. The only way it will work is if you have a realistic vision. You should never go beyond what you think you can do. Setting your goals too high will only give you stress and cause you to fail at your mission. Any amount of savings is good. Even if it's only $10 or $25 a week, it will grow over time.
3. Figure Out Your Disposable Income
The golden rule of saving money for any reason is to pay yourself first. Many debtors don't understand the concept, but it makes perfect sense. People strive to pay their bills, and that's understandable. However, consumers need to look out for themselves first so that they can get an emergency fund together for hard times.
The "pay yourself first" process is straightforward. The next time you get a paycheck, take out the amount that you want to save first. Also, deduct what you need to get through the week. Put the money into your emergency funds, and don't look back. You can then proceed to pay your creditors as you normally would.
4. Stay Disciplined
Saving money takes a lot of discipline. A lot of people fail to save money because they do not discipline themselves well enough with their spending and budgeting. They try to put money away, but then they pull it out and use it for things that are not important. You have to make the commitment right now and promise yourself that you will not use the funds you put in your emergency fund for any reason other than an actual emergency. It can work for you if you stay strong.
5. Open a Separate Bank Account
One way that you can help your money-saving process along is to open a separate bank account. It can be a checking or savings account. The smart way to save would be to open a savings account that offers to give you a high interest back each year. That way, you can continue to make money while you save money.
The idea of opening a separate bank account is part of the "out of sight, out of mind" theory. You're more likely to save money if you put it in a separate account that you don't access regularly. If you choose to open a savings account, we have suggestions for you:
6. Use a Trusted Friend or Family Member
It may also help you save money if you use a trusted friend or family member to "hold" your money. Naturally, you have to be able to trust this individual. You can have that person open a bank account for you and then put the money into that account.
If an emergency arises, then you can have your trusted friend pull the money from the account for you and put it in your hands so that you can take care of your needs. You may have an easier time saving money if you enlist the help of someone close to you.
7. Sign Up For Bank Promotions
A lot of banks have promotions that they use to draw in new customers. They offer some of these customers hundreds of dollars just for signing up for their products and services. You can earn some extra money to put in your emergency fund just by signing up with one of those banks. Visit the banks and see which ones have a promotion.
Read the rules and requirements before you sign up, and then take the deal if you think it's fair. You may have to wait a couple of weeks to earn the bonus, but once you do, you can put it directly into your emergency fund for later use.
8. Save Money Using Direct Deposit
You can also save money for your emergency fund by using direct deposit. Most employers offer their employees the opportunity to have money sent to their bank accounts. You can send money to at least two different bank accounts. Change your settings to have a certain amount sent to the account that you're using for your emergency fund. Send the rest of it to your other bank account. It's that simple. You won't miss the money that you put into the emergency fund account because the payroll department will separate it before it hits your everyday account.
9. Use Apps to Save Funds
Apps can help you to save money, as well. For example, there is an app you can install that will round off all your purchases and put the leftover change toward an emergency fund. You don't have to do anything except sign up for the app and watch your money grow. Several apps like that exist. All you need to do is download the one you like. You'll see the cash build up quickly, even if it's only nickels, dimes, or quarters each time.
10. Invest in Stocks
The stock market can help you save some extra money for your emergency fund. There is a certain amount of risk involved in it, but you can still save money if you pick the right stocks. Before you dip and dap in the stock market, you should do some research on it and find a good strategy for picking successful companies. Once you do that, you can invest in the companies that you feel are successful. Any money that you earn off of your investments can go into your emergency fund account. You will feel good as you see the balance rise over time.
11. Rent a Room
Renting a room is an excellent idea to get some cash flowing in for your emergency fund quickly. It's easy to rent a room to someone who needs it. You can list it in the classified ads on the local newspaper, or you can use a classified ad website. Another option for you is to use a third-party site to rent your room. Third-party providers conduct background checks on prospective renters, and they also collect the money for you so that you get it before the renter stays in your home. You can also choose to rent to a variety of people through those third-party apps. The choice is yours, and you should base it on whatever makes you feel comfortable.
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12. Rent Your Car
Another idea for you is to rent your car to various people. The ride-sharing business has been booming lately, so many people want to start joining it to earn money. You might be able to rent your vehicle out to someone who wants to use it to give other people rides for pay. It's an excellent idea if you currently own more than one car, and you're trying to think of ideas to make money.
13. Use Stock Apps to Get Bonuses
Developers have created applications for people who want to invest in stock on their cell phones. You can take advantage of that by downloading one of those apps. Some providers are offering bonuses of $5 to $20 to people who sign up for new accounts. That bonus could be the start of your emergency fund. You won't even have to do anything except join to receive the funds. You can earn even more money if you choose some fruitful companies to invest your money in. It's worth a try.
14. Work a Part-Time Job
Another way to gather money for your emergency fund is to work a part-time job. Many companies are hiring part-time workers to fill in spots during the day shift, weekend shift, and more. They need customer service representatives, stock people, cleaners, sales representatives, cashiers, and more. Search for a position that coincides with your regular full-time job and work it. You can use the funds that you earn at that job to build your emergency fund, and you still use your other funds to pay all of your bills. Working a part-time job could be a positive venture for you.
15. Work From Home
If you want to go outside to a regular job, you can always work from home. A wide variety of online jobs is available for people who want to earn money they can put into their emergency fund. You can work as an independent contractor and perform a variety of jobs such as customer service, sales, writing, and performing various social media tasks. Some companies pay once a week, and others pay twice every month. You can get started as quickly as one week from the date you apply. Do some research and think about signing up with one of the various companies that need independent contractors to work for them.
16. Offer to Do Odd Jobs
Another idea for getting money to put in your emergency fund is to do odd jobs. Odd jobs are tasks that you can do one time for someone and get cash for doing it. Examples of such jobs are gigs like babysitting jobs, housekeeping, grass mowing, tutoring, and the like. You can usually find those jobs by looking at the classified section of a newspaper website. You can also try independent classified ad sites. If that fails, you can always check with your local laundromat or public locations to see if anyone has posted such job opportunities on a wall board.
17. Sell Your Unwanted Items
Another way that you can get fast money to add to your emergency fund is to perform some kind of sale. One idea is to gather all the items in your household that you no longer want and to have a yard sale over the weekend. If you don't feel comfortable having a yard sale, you can use an auction site to offer your goods. Using an auction site will give your items more exposure so that people from all over the world can bid on your items. If your items are popular, you can make the money you need for your emergency fund within one day.
18. Take a Loan
You may want just to take a loan to get the funds you need for your emergency fund. That way, you can put the emergency funds into your account and then pay it back to the lender slowly. It's sort of a reverse way to save money, but it works. It would be best to apply for an installment loan.
Installment lenders give their customers much more time to pay back the advance than other lenders do. Some installment lenders give their clients up to 12 months or more to repay the funds they receive. It's an easy way to fatten your emergency fund as quickly as possible and have the money sitting there when you need it.
19. Create a Fund Campaign
You can turn to the community if you feel that you need funds to create an emergency fund. One way that you can do that is by utilizing peer-to-peer funding sites. You register with the website, create a profile, and then explain to the masses what your situation is.
When you are done explaining your situation, you will request that people send money to you for what you need. You can promote your request by sending links to friends, family members, and other people that you believe will be willing to assist you. Participants can donate any amount of money they wish to donate, and you can put it directly into your emergency fund account.
20. Use Money-Saving Apps
Lastly, money-saving applications can help you with your goal of building a quickly accessible emergency fund. There are several types of money-saving applications from which you may choose. You can choose one that monitors your banking transactions and automatically does things that leave money left for you to put away. You can download an app that gives you tips and strategies for building your emergency fund. You can also use an app that allows you to create a special account for the money that you make using your various methods. It's up to you.
The strategies mentioned above are just a few of the many strategies that you can use if you want to build a healthy emergency fund. You can find out more ideas and tips by contacting us and letting us know what you need. We have resources to help you find whatever it is you desire.
Talk to Us if You Need a Loan
We can help you if you're looking for a loan to help build your emergency fund. We are not lenders, but we have access to a myriad of lenders who provide short-term and long-term loans to people in the community. You can contact us if you need us to match your situation and your needs with lenders that are likely to help you.
You can also contact us for tips for reducing debt or learning how to make smart financial goals. Additionally, we can help you find lenders who can offer you mortgages, auto loans, consolidation loans, and more. Our specialists can assist you in many ways. Therefore, you should reach out to us and allow us to assist you. We're always standing by and waiting to assist someone in need. We'll be delighted to take your information and then help you meet your goals no matter what they are. Contact us by telephone or short form to get started on your journey.