Tips to Boost Your Emergency Fund
Many people often ask me, “How big should my emergency fund be?”. Typically financial experts will say a good base emergency fund should be six months of your pay. Your emergency fund is your lifeline in the event you get sick and can’t work or you lose your job. I know personally it is a daunting task and it is hard to get there but it can be done if that’s your goal with lots of determination and work.
Here are some great tips to boost your emergency fund and give you the piece of mind in the event that something does happen.
Pay Yourself First: this is a great tip my husband and I implemented and it works like a charm. Take a set amount you can feel comfortable with and set up an automatic transfer from your paycheck into your savings account every week or every month and you’ll be less likely to notice the missing cash. Also if you pay off a bill such as a loan simply make that money go into your savings each month from now on.
Go on a diet: Go on a spending diet. Cut out your little ticket items such as your morning coffee, tickets to the movie theater, and other small “extras” that you do for one month and put that money into your emergency fund. You will be surprised at how much this adds up to and your emergency fund will get a big boost.
Sell your stuff: Go through your closet and around your house and look for items you no longer wear or no longer use. Sell these items on local Facebook garage sale groups in your area, Craigslist or Thredup makes it super simple to sell your clothing you will no longer wear.
Get a part time job: This is a great way to add income without cutting expenses. If you work during the week see about picking up a part time job for a few hours each week.
Offer your Services: Do you live in a neighborhood with lots of kids? Offer to host a parents night out and babysit kids at your home. Set the hours and price per kid and make it a fun night of games and movies while also bringing in some money. The parents will LOVE it! Also pet sitting is another great idea that is always in demand.
I know first hand that building that emergency fund up is hard work but once you get there you will be so glad you made the sacrifices. There are so many different ways to boost your emergency fund just find out what works for you and in no time you will be watching that account go up and gaining peace of mind.
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