Having an emergency fund is an important piece of a financial plan. Never has that piece been more important than it is now. But how do you build such a fund with the crisis that exists around us? Here are 9 paths to get there:
- Vision board. Create a visual plan that is attainable and is something you can see spelled out.
- Friends & family. Get support from those near and dear to you to help you stay on track.
- Penny saved, penny earned. Save every penny, nickle, dime, quarter, and dollar you can find. This adds up over time!
- Weekend warrior. Working an extra job on the weekend may not be fun, but it does lead to extra money in the bank.
- Parting ways. Are you getting rid of anything? See if you can sell it instead.
- Hand off. See if you can temporarily reduce your 401k contributions and move the extra into savings.
- Pass the buck. Have you gotten a raise or a bonus? If not, ask for one. Then pass it into your savings.
- Double time. Use your overtime, holiday pay, or bonus to kick-start your emergency fund.
- It’s your money. Convert your tax refund into an emergency fund.
These may seem like a lot of random ideas, but they all can potentially yield results. Chase after one, combine a few, or make a game out of it. Either way, the worst thing that can happen is some more money in your pocket to save for emergencies.