Having an emergency fund is an integral part of a solid financial plan. Your emergency fund provides financial security when emergencies and unexpected costs strike when you least expect it. This can be an unexpected job loss, a car breakdown you need to repair, or an illness that leads to costly medical bills.
No matter the emergency you’re facing, having money stashed in an emergency fund account can help you deal with the urgent costs, preventing you from going into debt. However, if you’re faced with an emergency and don’t have any savings, you can get a small, short-term loan fast from a reliable payday lender like My Canada Payday. While you might be struggling to save up for a rainy day, there are easy ways to do it without changing your spending habits. Here are some tips that you can use to boost your emergency fund:
1. Automate Deposits Into Your Savings Account
If you have an income and can squeeze a few dollars from it, scheduling automatic deposits to your emergency fund can be the easiest way to grow your savings. You can automate deposits to go directly into your emergency account through your financial institution, whether online or by visiting in person. This way, you won’t be tempted to use the money on other things or forget to transfer the money into your savings account.
2. Look for Ways to Boost Income
If it’s hard to squeeze out a few dollars from your paycheck to save in your emergency fund, the best way out is to find ways you can boost your income. Increasing your income can ensure you have some extra cash to funnel into your savings fund. Getting a side hustle is one of the best ways to boost your income. Find ways to monetize your passion or hobby, whether creating art pieces and selling online, tutoring on YouTube, blogging, or building websites for businesses.
You can also get a part-time seasonal job that you can do during the summer or the holidays, such as pet sitting, retail shifts, or landscaping. Working a side-hustle while still working at your regular job can help ensure you have money to put aside for savings.
3. Put Extra Money Into Your Emergency Savings
Growing your emergency fund is no easy feat, especially if you’ve lost your job or have an unstable income. However, you can funnel a portion of any unexpected windfall you receive into your emergency fund, whether a workplace bonus, tax refund, grocery rebates, or cash gifts. Instead of spending the extra cash, use it to supplement your savings account and reach your savings goal faster. If you’ve just finished repaying a loan, you can continue sending the same amount to your emergency fund. This way, you won’t notice any difference in your spending, but you’ll be growing your savings.
Endnote
Saving up six months’ worth of expenses isn’t difficult. Use the tips mentioned above to grow your emergency fund and ensure you have a safety net to fall back on when times get tough. Use the funds only during an emergency but not for incidental expenses. This is crucial because it might take longer than you expect to replace any funds you spend. Growing your savings depends on habitual contributions. Start now and contribute to your emergency fund, even if it’s not much. You’ll be surprised how much you’ll have saved after only a few months.
