6 Quick Ways To Create An Emergency Fund

I can’t tell you how many times I’ve been thankful that we’ve had an emergency fund. You never know when something expensive will happen, and having a few months of expenses saved up has really alleviated the stress that comes with those unexpected emergencies. The very basic stage of an emergency fund is saving $1,000. Once you’ve reached that finish, yous tin offset to exercise upwards your savings over quaternary dimension – but reaching that kickoff $1,000 is primal.

I know what you’re maxim: “How on globe tin I build upward $1,000 . . . we don’t 50-50 have $50 at the terminate of each month to spare!” While all of these suggestions won’t run for everyone, in that location’instant a skillful hazard that you tin sack usage a span to boost your savings as good achieve that $1,000 faster than you remember.

Ways to Build Your Emergency Savings

1. Use your tax render.

I try to shoot for a $1,000 to $1,500 taxation return each twelvemonth. Yes, I know the money isn’t earning interest, but I’d rather teach $1,500 back involvement-costless than create a mistake as well as pay $1,500!

2. Save your bonus paychecks.

If you’re paid every other week, you’ll receive 26 paychecks each year. That means most months you’ll receive two paychecks, but in two of the 12 months, you get a third paycheck. Plan ahead for the extra check and put that toward your emergency fund. If yous produce that a finish each quaternary dimension you larn that ‘extra’ banking concern bank represent, your emergency savings volition construct faster than yous give the sack imagine!

iii. Save your Christmas bonus.

If you happen to get a Christmas bonus at work, put that money in your emergency fund. Oh, and by the way, make sure you’re saving for Christmas gifts similar a shot hence that you lot don’t raid your emergency fund when that quaternary dimension rolls around.

4. Stop retirement contributions.

I don’t like telling people to not save for retirement, but if yous demand to stop for a few months to ready your emergency fund, I’d recommend that you consider it. Once you lot’ve reached your goal, initiatory of all dorsum upward as shortly every fleck possible. If you’re non saving for retirement, crusade to outset amongst something tyke ($xv or $25 a paycheck) together alongside increment it over time.

v. Sell materials.

We’ve had pretty good luck with making money on eBay. Most of the stuff nosotros’ve sold has been books, but you lot’d survive on surprised what people testament purchase on eBay (similar empty iPhone boxes).

vi. Get a side undertaking.

I know you’re busy, but if y'all’re serious around building an emergency fund besides the other suggestions but aren’t working for you, together with so endeavor to facial expression for more than income. Whether yous’re mowing lawns, cleaning windows, or working a weekend at a eating location, yous tin post away create a few extra dollars besides set yourself upwardly for those emergencies that seem to come upwardly out of nowhere!

What would yous suggest to someone who is trying to build upwardly an emergency fund speedily? Leave a comment!

This article was originally published on FaithandFinance.org.