We discussed Why is an Emergency Fund Important, but do you wonder when we you are already stretched so thin, how can we possibly find money to create 3-6 months of savings? Here are 8 ways that you could find money to build an emergency fund:
- Create a budget to find out how much you can squeeze out of your monthly income to set aside for an emergency fund.
- Think of your monthly contribution to your emergency fund as another bill.
- Automate it by having your online savings account automatically withdraw the funds from your checking account on the days you are paid.
- Put all lose change and extra dollar bills in a piggy bank.
- Save your tax refund.
- Get cash back from your purchases with AMEX Blue Cash, but only if you are disciplined to pay off your balance every month.
- Give up a habit, such as smoking, drinking coffee, taking taxis, or eating out and put your savings towards your emergency fund.
- Increase your income (see 9 Ways to Make an Extra $100 a Month)
Millionaire Money Habit: Building an emergency fund is essential to protect yourself from an unexpected event, but don’t be overwhelmed by the amount of money you need to save. The important thing is to start now with whatever little you can, and consistently contribute to that fund until you reach your goal. Some emergency savings is better than no savings at all. -RT
photo by oskay
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