No sound financial plan is complete without an emergency fund.
Asides from helping to sort unplanned expenses, such as medical bills, automobile or home repairs, an emergency fund can also help you weather a loss of income, resulting from job loss or extended illness.
Are you yet to build your fund reserve in case of emergencies? Here are 5 ways to go about it.
Get The Whole Family Involved
It is important to note that the other people that live with you are an important part of the money that you spend, so it makes sense to include your spouse, partner, children, or anyone else that has an impact on how your money comes and goes.
Get everyone together and let them know the importance of building an emergency fund reserve for the family.
You can make it simpler and more fun for everyone to be a part of by getting a big jar in a visible place in your house. This serves as a visible reminder of the goal that you’re all shooting for.
Create A Budget
It’s hard to know how much extra money you have if you’re not sure where your money is going.
Having a budget eases your financial stress and gives you an indication of where you might be able to save some money.
Remember that a budget is only a tool to help you avoid spending money on things that aren’t important to you so that you still have money available for the things that ARE important to you.
Sell Some Items
To jumpstart your emergency fund, take stock of everything you have at home and look for things you no longer need, and sell them.
You can do this by having a garage sale, talking to other family members and friends, or listing them on online platforms or marketplaces.
Tie this into the earlier suggestion to involve your whole family. Even kids can help contribute with toys, video games, or other items to sell.
Cut Down Your Expenses
Another way to find some money to bolster your emergency fund is to look at which of your recurring expenses you can get rid of.
Cut out the subscriptions and items you can do without and ensure that the ones left are providing great value to the whole household.
Save Unexpected Income
Did you win the lottery, get a bonus, cash gift, or inheritance? Set aside a part of this windfall to fund an emergency reserve.
It doesn’t matter if you’ve reached your emergency fund goals, adding a little extra can make all the difference when you need it.
Improve Your Savings
The final way to find the money to start an emergency fund is to pay yourself first. Going along with the idea of separating your emergency fund into a separate account, you want to automate putting money into your emergency fund.
With the Rosabon Earning Plan – REAP you can conveniently set money aside to boost your savings in order to reach your long-term or short-term goals.
Having an emergency fund can provide peace of mind, and assurance that you have money when an unexpected expense happens.
Hopefully, these tips have helped you figure out how to find the money to start your emergency fund and get your finances in tip-top financial shape.