For all your online business building info! , 2020-05-26 23:27:12
Set Money Aside to Create an Emergency Fund – 10 Tips
Everybody knows that building up an emergency fund is one of the most important things you can do to help your finances.
Everybody knows it but many don’t do it. Most of them who haven’t saved up an emergency fund have difficulties with saving money. With the tips below you should also be able to set money aside for an emergency fund:
1. Stop getting into debt
If you don’t have an emergency fund, you will use credit cards to pay for emergency expenses. And guess what, you will dig yourself deeper in the hole. So don’t wait, start and emergency fund. Everybody can set aside something (if it is only $20 each week.)
If you have an emergency fund you don’t have to re-factor your budget each time something unexpected comes up. With an emergency fund, it makes budgeting much easier.
3. Late fees
Most people live from paycheck to paycheck. With an emergency fund you don’t have to pay a bill late or to overdraw your bank account. (Banks charge a certain amount if you overdraw your account.)
Worrying about money can cause much unnecessary stress. If you have money in an emergency fund (at least to get one month ahead) your financial stress will drop down considerably.
5. Start with small amounts
Many people have a small paycheck, but everyone is able to save a little, the amount doesn’t matter. If you can save only $10 or $25 per paycheck the amount in the long run can grow to a considerable amount. Just try to start with as much as possible.
6. Automatic deduction
Make use of automatic deductions that some banks are offering. Automatic deduction: each pay day a certain amount (you decide how much) is deducted from one bank account and this amount is then put in your savings account. After a while you don’t even notice the deduction anymore. The result is that your savings will grow with each paycheck, without any bother. (This is especially easy or good for people with self discipline problems.)
7. Bill yourself
Every payday or on whatever time you pay the bills, you bill yourself for the amount you want to put in your emergency fund. This way you are forcing yourself to put something in an emergency fund. (Tip 6 is better, because you won’t notice it after some time.)
8. Save on something you don’t really need
If you can reduce an expense, then save this money and put it in your emergency fund. For instance: if you go to the movies twice a week, go one time instead and put the money you save in your emergency account. Another example: Stop purchasing magazines, instead read them for free at the public library and put the money you save in your emergency fund.
9. Quit smoking or drinking
You can save allot of money when you quit smoking or drinking. Write down how much money you spend on cigarettes or alcohol each year. I bet it is a large amount (especially when you’re smoking.) And you know it, it is also better for your health.
10. Stash tax refund or bonus
You can use a bonus or a tax refund for your emergency fund. Don’t spend everything, save some!
This are just a few tips, there are many other things you can do to set money aside for an emergency fund. What scheme or trick you are applying, it is most important to have some discipline. Without discipline nothing works!
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