I am very tied to my emergency fund. I saved my first $ 2,000 baby emergency fund in 2015 when I was just starting my debt settlement journey. Since then, for some reason, I’ve had a hard time parting with the money.
It is important to save money and not touch it in case you really need it. I’m the type of weird person who feels guilty about using my savings for legitimate reasons, and I know that doesn’t help.
In short, after having held onto my emergency savings for several years and continued to hold money, I had to spend about half the money in my EF last month. Ouch!
Become a homeowner is more expensive than I thought and unfortunately I have to admit that I withdrew from my EF to cover non-emergency expenses like extra supplies we needed to repair our home. It was better than the idea of taking on debt, but now my responsibility is to fund my account and I want to do it quickly. I don’t want to take the risk of facing additional unexpected expenses that I cannot afford. So my goal is to replenish my emergency fund by the end of this year.
An emergency fund is just a helpful line of defense. I would recommend protecting yourself from financial turmoil. The thing is, nobody wants to spend years building their emergency fund. Here are some effective ways to get you started and grow your Emergency Fund FAST.
To pledge oneself
The first thing you need to do in order to achieve any financial goal is to make a commitment to prioritize it before anything else. If building your emergency fund is your current goal as quickly as possible, then the need to focus on that and choose the amount you want to save in the end and set a deadline for yourself.
If you haven’t already, open a separate savings account and set up automatic transfers. I keep my emergency fund in one High yield savings account at Capital One 360 where it deserves a competitive rate that helps me improve my balance.
Paying yourself first is an important step in making sure you stay on track. Oh, and you have to make some sacrifices too. I’m sure you are probably not thinking duh chonce, but you really need to mentally prepare for the change.
This can mean saying no to certain things or limiting other areas of your spending.
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Budget for savings
After committing, adjust your budget to match your aggressive savings goals. Add a savings category to your budget or increase your current savings rate to speed up the process.
See what expenses you can cut or reduce, even if they are temporary. If you’re using a spreadsheet system like me, it’s easy to play around with the numbers and adjust your spending categories to see how much you can afford to put them aside.
A healthy and specific budget will be crucial in this and will keep you in the know as you work towards your big goal
Related: Learn How To Budget Properly Here
This will save you money in almost all areas of your life
Find one-time additional income opportunities
Don’t be satisfied with your budgeted amount when it comes to making savings. If you want to hit your emergency fund goal quickly, consider increasing your savings rate by finding one-time income opportunities.
Usually summers are slow for blogging and freelance work, but I’ve picked up some freelance projects this summer that keep me very busy. I need to be able to manage my time better, but on the plus side, I’ll make extra money that can be used directly for savings.
You can do this too if you are trying to grow your emergency fund quickly. See if there are any one-off gigs or projects that you can do for extra cash.
I’m not going to lie, freelance work is one of the best ways to make lots of extra cash quickly. You can guest-post one-time posts on other websites, do a few photo shoots, sell your graphic design services on Fiverr, provide consulting services, or even do VA work to make thousands in a short period of time.
Best of all, you don’t have to stick with it forever. Just make enough money to replenish your emergency fund and feel better about yourself.
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Sell your old stuff
You probably saw this one coming. Selling your old stuff is a classic way to make extra cash quickly. When it comes to growing your emergency fund quickly, you don’t want to waste time selling the old junk you have.
You want to sell the nice big ticket items that make you big bucks. If you have small appliances, furniture, televisions, or electronics, these items are sure to get you the most bang for your buck.
Good clothes, shoes, and books are still selling well, but you have to sell a lot more to make a significant amount.
One of the best places to sell items online these days is on the Facebook marketplace. I’m a frequent buyer on the Facebook marketplace and often rave about all the great deals I find on social media.
If you have really nice and sought after items, they will sell quickly on the Facebook marketplace and you can reach your emergency fund goal faster.
Related: How To Make Money Selling Items On Amazon And eBay
Use windfalls and bonuses
It feels so good to receive unexpected money like labor bonuses and tax refunds. Since you weren’t expecting the money at all, you can avoid the temptation of wanting to spend the money.
My husband has the opportunity to earn a bonus on his job every month and it’s fun because we never know how much it will be. However, we know we don’t plan to spend it and will just toss it in our savings account.
Tax refunds and year-end labor bonuses can greatly improve your emergency balance.
A stroke of luck that I don’t count on, but which I would definitely put in my savings account, is a check on the deposit for our old apartment. When you move out of a rental property, don’t forget to check your security deposit to see if any of it is being returned to you. Like I said, it’s not something to rely on, but it’s a great way to increase your savings when you get one.
If you don’t get a deposit back, your landlord should still provide you with a detailed list of the repairs your deposit has made within a reasonable time after you moved.
Get a regular sideline or a second job
As Dave Ramsey always says on his radio show, “You can make a few hundred to a thousand dollars a week delivering pizza on the side.” If you don’t like this idea, there are plenty of ways to make extra money with an ongoing side business or second job.
Some of my favorite options are driving for Uber, freelancing, website testing, online tutoring, babysitting, dog walking, and becoming a virtual assistant.
All of this will help you make hundreds more each month. These are just a few ideas, but there are so many options. You just have to be ready to take action and try it out. When you’ve found the most lucrative sideline for yourself, stick with it and discipline your spending to quickly grow your emergency fund.
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Now I want to hear from you.
Do you ever feel guilty for any reason about using your savings? Are you trying to quickly rebuild or expand your emergency fund? What steps are you taking?
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