building your emergency fund
HOW DO I BUILD MY EMERGENCY SAVINGS?
First, you need to remember that any money you can save is better than none. The easiest way to grow your fund is to automatically transfer 5-10% of every paycheck directly into your savings account. What you don’t ever see, you won’t ever miss. On top of that, try to cut back on unnecessary expenditures. For example, try to pack your lunch or make coffee instead of buying it. If you know you usually spend $30 per week on lunch and coffee, you can now transfer that money into your savings account. Do you have a talent or a passion that can be translated into a side hustle or second job? Use the money you receive from cleaning houses, babysitting, tutoring, dog walking, blogging, etc. to build your emergency fund. Spring clean your garage, attic, and closets and have a yard sale or sell your stuff online.
WHAT DO I DO ONCE I’VE REACHED MY GOAL?
Congratulations! Now pat yourself on the back and don’t touch the money unless there is an emergency. Revisit your account once a year and consider whether or not you should increase the amount. Take life events like a baby, new house, or higher (or lower) salary into consideration when making the decision.