There are many different numbers out there, but the consensus is that too many Americans have no emergency fund. With many living paycheck to paycheck, an emergency savings fund is not available to them. This can lead to a real crisis of the budget and future ability to live with financial stability.
But, the good news is that there are many ways that most people can actively save enough money to have an emergency fund. Here are some methods to use if you need to have a savings for emergencies.
Get out of Debt
It’s hard to utilize many savings methods, if you’re carrying credit card debt. Stop spending on the card and work to pay down the debt. Then, you can improve your credit rating and qualify for a cash back rewards card. Credit cards should be paid in full each month.
Stop eating out
Purchasing lattes or even visiting the vending machine can add up. Save the money from these types of purchases and you’ll be able to save quite a bit of cash for your emergency savings fund. Make your own coffee at home and take it with you. Bring your own lunch from home, so that you don’t take your lunch break to dine out.
Cut back on high utilities
Can you lower your thermostat or hot water heater temperature? Just a few degrees can help you to save on the utility bills. You can personally negotiate with internet, cell phone, and cable bills. You can also join a company like TRIM, who will negotiate your bills for you. Trim negotiates cable, internet, phone, and medical bills, cancels old subscriptions, and more. It’s free to sign up, and if they save you money you’ll be charged a 25-33% charge of the total they saved you. You’ll still come out ahead.
Use an App to round up your spending
An app, such as Acorns or Qapital, will help you to save when you make a purchase. If you spend $2.50 on a purchase, the app will round up the amount to $3.00 and put $.50 in savings. This will add up just as you could put your change into a jar at home each evening.
Sign up with Swagbucks and your Acorns subscription will get you 1350 SB ($13.50 in gift cards)
What could you sell? Most of us have unused items that could be sold for cash: old exercise equipment, nice clothing, books, collectables, instruments, and such. Using Facebook marketplace, Craigslist, or Ebay you can sell many possessions for cash.
When you’ve made some changes to your spending, then you’ll see the savings grow. Research the best savings account in your area or online and place your savings there. Try to choose an account that offers some interest to help the emergency fund grow faster.
Get out of Debt
It’s hard to utilize many savings methods, if you’re carrying credit card debt. Stop spending on the card and work to pay down the debt. In addition, find out how using a personal loan to consolidate debt can help you. Then, you can improve your credit rating and qualify for a cash back rewards card. Credit cards should be paid in full each month.
I hope this list will inspire you to start or boost your emergency fund. What is your best tip for saving money?
@2020, copyright Lisa Ehrman