Do you have an emergency fund? Funds you set aside, untouched, in case there’s a catastrophe? Most of our society relies solely on credit cards, maintaining minimum payments, living paycheck to paycheck. That feeling of drowning as you count your bills and hope it matches your income is debilitating.
We’ve recently completed Dave Ramsey’s book, The Total Money Makeover. His steps to financial freedom are inspiring. The first, save up $1,000.00 in an Emergency Fund.
Can you imagine a life where you have a savings for emergencies? It may seem tough to find the funds when looking at your account.
Take a good look at your budget, income and transaction history. Detail by detail. Keep track of your spending for a month, categorize it and see where you can eliminate to start saving. Separate your wants and needs. Sometimes we confuse the two.
Here’s my 5 simple ways to start your emergency fund today.
- Cut your cable. Typical companies charge $70-$300 for cable or dish each month. Need an alternative for TV? Checkout Hulu or Netflix for your entertainment. Much cheaper and the same experience!
- Skip the morning coffee shop. The average coffee shop charges $5 a drink. If you skip the coffee for each workday you’ll save $100 a month! Need alternative options? Find a cheaper drink, save the change. Treat yourself once a week, save that extra $20. Better yet, make a one time purchase for a coffee pot, brew it fresh at home.
- Pack your lunch. Most restaurants, even fast food will charge $8-$12 a meal. By packing leftovers, sandwiches etc you’ll be able to save roughly $200 a month.
- Minimize. With today’s technology you can easily sell unwanted items online. Clothes, furniture, trinkets, anything you don’t use… just taking up space. Facebook marketplace and online garage sales are a great place to start! Save the earnings to get a good start on your fund. Minimizing your space will also help you simplify your cleaning time and household stress.
- Turn your weekend hobby or life passion into a side job. Whether you enjoy crafting, photography or baking; you can do what you love and earn cash fast. Facebook, Etsy, eBay etc make it easy to create a page, gain traffic and start up right away.
There are many ways you can start preparing for your future. Saving money is important. You can do it, simply!
After the first $1000 goal, don’t stop. Pay off your debts the same way you saved your first $1000. You’ll find joy in that financial freedom. Your account will too!
Do you have an emergency fund already started? What are some creative ways you save each month? I’d love to know.