How to Build An Emergency Fund Fast
Having an emergency fund is something that everyone knows is necessary, but few actually get around to doing. The reasons for this are varied, but the biggest one seems to be a lack of motivation. There are many people out there that have the money to be saving an emergency fund, but they never seem to get around to it. The key is to get organized, get motivated and get to it!
Here are some tips to save up an emergency fund fast:
Begin by doing a budget
No emergency fund is going to work if you have no budget to work with. Budgeting allows you to see what money you have left over after bills and how much you can actually afford to save. If you see that you have little to no money left, it is time start finding ways to save. Getting a budget that works is key to any saving project.
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Set up an auto-save feature for your change
Most every bank has this option where you take any change on debit or credit purchases up to the dollar and put it in a special account. This is a great way to save an emergency fund quickly. That money adds up. Rarely does your purchases come out to an even dollar amount, so you end up with a little savings every time you spend.
Commit all of your unexpected income to emergency fund savings
When you get money you never expected, put it away in the fund immediately. This is a great way to get ahead with your fund and you might be surprised at how many times you get extra money in a year. Perhaps you get a birthday cash gift, a rebate, an interest payment or even a dollar under the seat cushions. Whatever the case, put it back and forget about it.
Have a Garage Sale or Ebay Sale
You can get a jump start on your Emergency Fund by selling items you have on hand, Most people can quickly stash away several hundred and up to $1,000 just by selling items they no longer use. Search Facebook for a local Garage Sale Group, Use Ebay or check out Craigslist to sell items you no longer want or need and then stash that money away in your Emergency Fund.
Make a point to carry funds to an actual account
You need to open an interest building savings account for this fund or you will be tempted to dip into it. Make it tough to get to…perhaps you can make it so the only way you can access it is to go inside the bank. This will also help to prevent you from going into the account prematurely.
Define clearly the reasons to use the money
Emergencies can be fairly fluid if you donâ€™t define them. Is a car repair an emergency? A sickness? A shortage on vacation? Etcâ€¦ You get the idea. Define your emergencies ahead of time and make sure all parties are in agreement ahead of time.
Get in a routine, however small
The repetition of putting money into the account is the key. If you do this regularly and never miss a deposit, you will build up your emergency fund very quickly. Eventually, your fund will grow to the point that it becomes cooler to leave it alone than to delve into it. You will want to see how big you can grow it.
Just like any other saving endeavor, you have to be persistent and willing to stick to it. Push hard in the beginning and be very serious about your methods, and you will be well on your way to financial security through an emergency fund.
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