An emergency fund is something everyone should have. It should be about three to six months of your expenses and be used instead of going into debt. This money can be used in any emergency, from losing your job to replacing the tires on your car. It can be challenging to save for an emergency fund. These are two strategies you can use to start saving today.
The first thing you can do is to cut back your spending on non-essential items. You may have to do this for a few months to fully fund your emergency fund. All the money you were spending on dining out, coffee, clothes, and so on should be put into this emergency fund. You can continue your regular spending if you really miss this after you’ve saved the amount you need, or you may find that you can live without these things and save for other financial goals.
Another way to save for your emergency fund is to find extra cash. You can do this by selling the things in your house you don’t use or finding a side hustle. Go through your house and find all of the things you haven’t touched in a few months. List those on online marketplaces to earn extra cash that you can put towards your emergency fund. If you’ve already done this or want to get even more cash, find a side hustle you can do for a few months. You can bartend or waitress on your days off or even find an online job you can do in the evenings and weekends.
Finding ways to cut back your spending and pairing it with ways to earn more money can help you fund your emergency fund faster. All the money you save and earn can go towards this goal until you reach it.
