5 Ways To Add To Your Emergency Fund This Month
Anyone who is working on improving their finances and has a goal to be debt free should have an emergency fund. An emergency fund is money that you have set aside for yourself and your family to use in the case of emergency. A new pair of shoes...not an emergency, Starbucks card goes empty...not an emergency, the plumbing in the kitchen bursts and water is flying everywhere...ding, ding, ding...emergency!
Having an emergency fund saved will keep you from having to go into debt by using a credit card in these circumstances. We personally follow the Dave Ramsey plan to manage our finances. Baby Step #1 of his plan is to save $1000 in an emergency fund. We have had our emergency fund saved for a while. If we ever have to use the money from this fund for an emergency, we make sure to build it back up to $1000 as soon as possible.
Today I want to give you 5 Ways To Add To Your Emergency Fund This Month.
For the sake of this post, let's say that you are working to build up a $1000 emergency fund. Here are some ideas of how you can add to it this month.
+ Sell Something.
We all have items in our homes that are collecting dust that we no longer use. Clothes, old video games, jewelry and electronics. These are all items that can be sold online or at a garage store to help bring in some extra cash. Even if you sell items for just a few bucks, it is more than you had and something you can add to your emergency fund.
One persons trash can truly be another persons treasure. A few ideas of places to try to sell at are Craigslist, pawn shops, consignment stores and some people even use Etsy to sell the clothes thy no longer want but are in great condition.
+ Get a Side Hustle.
If your schedule allows, getting a side job can help you bring in extra cash fast. Dave Ramsey always suggests that people deliver pizza on the weekends, but if that's not your thing see if you can pick up a weekend shift at your favorite retail store or restaurant. There are a lot of stores that hire just for the weekends, especially during the holidays. This doesn't have to be a permanent thing but just until you can save up your emergency fund.
+ Eat at Home.
If you and your family eat out often, consider eating at home until you save up your emergency fund. I know for us, a family of four we spend at least $40 when we eat out at a sit down restaurant and no less that $20 if we go to a fast food place. If we did this multiple times a week it could really add up.
Instead of eating out, try recreating your favorite dishes at home. This will not only save you money but it will also keep you from consuming excess calories and fat that is found in a lot of food when you eat out.
Cable, internet, phone service and subscriptions are all things that can be downgraded or paused until you build your emergency fund. I have personally paused several subscriptions and completely cancelled cable years ago. All of these extra debits from your bank account really add up.
Determine how much you are saving from downgrading and have that go into your emergency fund.
+ Stick to Your Budget.
The last way you can add to your emergency fund this month is to make a budget and stick to it. I kid you not, when we started following a budget and following it strictly we "found" all kinds of money. The money that we were spending nonchalantly and not even realizing was a substantial amount.
Once we got our budget under control we were able to add the money we "found" to our emergency fund. Check out my Ultimate Guide to Budgeting in 2016 post to get started with a written budget.
Well friends, I hope you found this post helpful. Have a fantastic day!
*This post contains an affiliate link