Financially speaking, building up an emergency fund is one of the most vital things you can do. While everyone knows it’s a smart idea to have extra money set aside for emergencies and accidents, it isn’t always the easiest task to undertake.
That’s why we’ve come up with 15 sound strategies to help you begin and maintain your emergency fund right away!
*Start small! Even saving as little as $25 per paycheck will help your emergency fund grow, and you will be motivated to save even more.
*Set up an online savings account and have it deduct an amount automatically each payday so you don’t have to even think about it!
*Ask your employer if you can have the amount deducted directly from your paycheck before it goes into your checking account.
*Treat your emergency fund as a bill each payday, and pay it at the same time as your other bills.
*Take a look at what you spend your money on and cut back on luxuries such as cable TV, unnecessary online purchases, gourmet coffee, and superfluous clothing. Whatever you decide to cut back on, take that same monetary amount and put it directly into your savings account.
*If you finish paying off your car, house, or other debt or loan, take the amount you were paying to that debt and put it directly in your savings each month. You won’t fell a difference in your budget, and you’ll save quite a bit of money!
*Do your best to give up an unhealthy habit such as drinking or smoking. While this is no easy feat to accomplish, you’ll find that you can bolster your emergency fund quite a bit when you give up the habit for good.
*Limit the access you have to this account. You can put your emergency fund in a money market account or fund, somewhere where you can’t easily access the account if you were tempted to tap into it.
*If you happened to get a Christmas bonus or will get a tax refund, be sure to save it instead of spending it.
*Don’t forget your coins! When you get home at the end of the day, place your coins into a jar and deposit them in your account once a month. It will add up much more quickly than you think!
*Try refinancing your mortgage or auto loan to help you save money. Take the amount that you would save and put it toward your emergency fund.
*If you have two cars and can live without one of them, sell one of them and save the money you receive or buy a cheaper, used model and save the difference in your payments.
*Instead of seeking fun by going out to eat or going to the movies, make your own meals and do fun things that are free to help save the difference.
*Showcase your talents and market them as a freelancer or get a second job on the side. Take the extra income and put it in the bank.
*Hold a garage sale and put the money that you receive in your emergency fund.
If you need additional money-saving tips or need to save money on your insurance, don’t hesitate to call the experts at Madison Mutual Insurance Company at 1-800-766-MMIC! You can look us up online as well at www.madisonmutual.com to see all the great policies we offer.