Building up an emergency fund is one of the difficult things to do especially when you’re already on a budget. With the costs adding up every day, it would feel like a never-ending task to boost up your emergency fund.
The emergency fund is not just to cover-up a sudden expense but it gives you the confidence to face any financial crisis. Building up an emergency fund is the quickest way to add security to your financial life.
What, $1000 in 3 months? How? Really!!!
Saving $1000 in 3 months would sound like a gimmick to you if you’re among the majority of Americans who muster to even save $400. Yes, that’s the challenge to pad up your emergency fund by %1000 in just 3 months. By following the 17 simple steps, you can easily save more than what you’re doing now. You can even make your own list by simply noting down the areas where you’re over-spending and where you can cut down. That doesn’t mean you need to become stingy and cut down all the things you love. There are other areas where you might be spending more than you should and just need to identify such areas.
17 Simple Steps to pad your emergency fund:
We have listed down 17 simple steps which you can follow to boost your emergency fund. Additionally, you can add your own steps as well and start following them gradually.
Step 1. Hunt down all the spare change!
What can be more delightful than hunting down the treasure! Maybe it’s a small amount yet significant when you least expect it. Look for any spare change you kept in your jeans pocket, wardrobe, bags etc. You might get a good amount in total which you can put it in your savings.
Step 2. Redeem credit card points for a cash reward!
You might be thinking of using the points for a vacation but you can plan for it later. Instead, opt for cash rewards and add it to your emergency fund.
Step 3. Collect all the gift cards
Gather all the gift cards received and use it for any essentials or you can even sell it online.
Step 4. Utilize all the coupons
Before heading for shopping, look for any coupons online or sale offers in the nearby shops.
Step 5. Get the best out of customer loyalty programs
Check if you can use them in your gas station or drug store before it expires.
Step 6. Share your equipment
You can share your equipment such as a printer or a lawnmower with friends and split the cost.
Step 7. Trade your skills
If you have a skill which is in demand or board pets or garden, you can barter your skills. Be creative and try your luck.
Step 8. Sell your old things
Be it electronics, books or anything, you can get a good resale value for all. Sell the stuff which is no longer of use to you. Find a nearby shop to sell it or do it through websites such as eBay, Amazon etc.
Step 9. Share any memberships with friends or family
Form a group of people who can share your membership and its costs.
Step 10. Skip the gym membership
Take a break from your gym and form an exercise group, yoga or walk in a park.
Step 11. Opt for free entertainment
You don’t have to shred so much money on entertainment always, instead look for any free events such as free movie night, fair etc.
Step 12. Grow your own plants, herbs, etc.
Instead of buying, you can grow herbs in a pot such as a thyme, basil etc.
Step 13. Make gifts for your loved ones rather than buying
Bake cookies, hand-knit scarf or anything, you can make any creative gift for your loved ones. Your efforts would show them their importance.
Step 14. Aim at bulk purchase for the regular stuff you buy
The regular stuff you use can be purchased in bulk and you can save some money as well.
Step 15. Do-it-yourself
A simple cleaning, lawn care etc. can be done by yourself so think before you hire someone for it.
Step 16. Analyze your transportation costs
Give a thought about how you commute on a daily basis and if you can reduce your car trips to save some fuel. You can even use public transport and sometimes walk or ride a bike to a nearby place.
Step 17. Pack your lunch
You can sometimes cook and pack your lunch. Maybe thrice a week to save some dollars plus it’s healthy.
Follow the 17 steps mentioned above to boost your emergency fund for a financially secured future. You can gradually add your own list of areas where you can cut down and save more.