Experts have long said that you should keep at least a few months’ worth of expenses in an account in case a large unexpected charge comes that you’ll want to be prepared for. You never know when you could get hit with a large auto repair, have to replace your furnace, or even worse, what if you lose your job and takes a few months to find a new one. By setting up an emergency fund you can give yourself a little cushion so you don’t have to put charges on a credit card and set you back. What if you are struggling to find extra money to build an emergency fund?
Cut the Cable Cord
I’m struggling these days to see what the point in paying almost $200 for cable and internet when it’s really the internet that I primarily use. When I do watch TV, it is either shows that I recorded on DVR because I can’t stand commercials, or shows on HBO or Netflix, that are far superior than any network show (ok, this is Us is actually really good). If you can cut the cable cord and opt for a $10 a month streaming service, or even a couple, you can have significant savings each month. You can even invest $20 in an HD antenna that you can still get the local channels in (you’ll just have to get rid of commercials).
Earn Extra Money
Those that are wealthy typically aren’t handed money, they had to work hard for it, so if it means getting a second job to build an emergency fund, then so be it, at least it’s only temporary. If you can’t get yourself to get another job, then maybe it’s time to start looking at the items that are collecting dust around the house that you can either sell online or have a good old-fashioned garage sale to earn some extra money.
Stop Going Out to Eat
This might be where you can have significant savings in a month if you actually go grocery shopping and prepare, breakfast, lunch, dinner, snacks, even if on the go, is still cheaper than stopping for fast food, the gas station, or going out to lunch of dinner. If you can greatly reduce going out to eat, you’ll watch the hundreds pile up each month and find your emergency fund build up in no time.
Cancel Your Gym Membership
One area where you can make a quick $50 a month is cancelling your gym membership that you don’t use (I’m not judging, I just had to cancel mine that I’ve been paying for my wife and I not to use). Instead, while it’s still nice out, enjoy the cool walks/runs you can take outside to still get your exercise, in (don’t forget to take the dog), for free and no longer waste money on a membership that you don’t use anyways. It may not be much, but at least it’s not money you are literally throwing away each month.