Starting your own emergency fund can be difficult to do with the uncertainty of the economy. If you live paycheck to paycheck you probably have every intention to save money, but it is hard. Thankfully, there are many ways to save money in this economy. You can generate extra income by living below your means, cutting back on expenses, taking a second job, sell unwanted items and etc.
Living below your means
One way to create an emergency fund is to live below your means. When you live below your means you will have extra money left over to put into a savings account. There are many other reasons you should live below your means besides an emergency fund. Emergency fund should be taken seriously and should be priority once you have extra disposable income.
Cutting back on expenses
When you cut back on expenses you create a lifestyle you can enjoy. When cutting back you give up a little bit of material possessions but you can enjoy going out and splurge without remorse. When cutting back make sure you build your emergency fund first and reward yourself as soon as you hit your goal.
Taking a second job
If you have a second job it becomes easier to build an emergency fund because the paycheck will be dedicated to building an emergency fund. If you want to increase the rate at which you build your emergency fund you should live below your means, cut back and have a second job. Be careful when taking a second job because you put your health at risk. Most people do not account for the potential risk of a second job your primary job may be at risk as well, monitor your health.
Sell unwanted items
When you need to build an emergency fund you should sell unwanted items. One of the easiest ways to generate quick cash is to have a yard sale or post things on the web. When your tax free cash you immediately take it to the bank. Try to plan your yard sale on a Sunday so when you make your trip to the bank on Monday you won’t add to transportation costs if you drive.
There are many ways to build an emergency fund. You have to have a serious plan in order to build a good cushion. It is important to reward yourself when building an emergency fund. Good luck!