Having a ready supply of cash for unexpected circumstances such as hospitalizations, job loss, car repairs or even a simple leaky faucet that needs to get fixed as soon as possible, would come handy.
Although this critical advice isn’t really new to us, most of us still have a hard time building our savings for the “rainy days. If you haven’t started with your Emergency Fund, it’s about time you should.
It’s never too late to build one and you don’t need to have a massive amount of money to begin. To help you jumpstart your savings, here are 6 helpful ways to quickly boost your emergency fund:
1. Eliminate budget-breakers.
There are a number of budget-busters that you can ditch pronto, to save loads of cash. Your daily coffee runs, your cable TV, weekly happy hours, etc. If you are serious with looking for ways to boost your funds, then you need to do a few lifestyle changes – and it doesn’t have to be major. Remember, small but several chances can definitely add up to big savings over time.
2. Start selling your pre-loved belongings.
It’s time to get rid of unused and pre-loved items at home. Not only will it give you lots of cash, it’s also the perfect opportunity to declutter before another year starts. You can host a garage sale, join holiday bazaars or just list them online via Amazon, Craigslist, eBay or even on Facebook.
3. Get a side hustle.
Whether it’s a small business, a part-time job or some seasonal work, a side hustle is a very helpful way of generating cash for your emergency savings.
4. Cut your grocery and utility bills.
Sadly, these two major and fixed expenses take a big chunk out of your budget. Fortunately, you can do something in order to cut the bills. You can use energy-saving devices to save on your utility bills and you can also follow these 6 Grocery Shopping Tips to Save Money.
5. Skip your annual vacation.
If you are the kind of person who is okay with spending lots of money on expensive annual vacations but not on building emergency savings, then you need to change that mindset ASAP. I’m not saying that you should not spend on leisure or have a relaxing vacation. You can just opt for a staycation instead, and earn huge savings – that would be a big help for your emergency fund.
6. Go on a fiscal fast.
A fiscal fast is not spending money for a week or sometimes a month except for emergencies or things that are necessary in order to live, like food obviously. You just have to make do with what you already have during that period of time. This isn’t simply a “no-spend challenge,” it’s also a great opportunity to do give your finances a reboot and a detox.
As you build your emergency fund savings, make sure to monitor your progress. This way, you’ll see where you are and how close you are to achieving your “financial goal,” which will then give you more motivation and encouragement that you’re on the right track.
