Do you feel like you aren’t getting anywhere with your emergency savings? It’s challenging for many to justify saving money “just in case,” but having a healthy emergency fund is a sign of financial independence. Here are eight ways to make saving easier so you don’t find yourself in crippling debt during an emergency.
Start With Something
Something is always better than nothing. It’s alright if you can only afford to deposit $20 or even $10 a month. You’ll thank yourself in a year when you have anything you can fall back on if there’s a financial crisis.
Invest More When You Can
Once your financial situation improves, this is the time to make a renewed effort to build up your emergency fund. Not only does it prove that financial situations can change on a dime, but it’s also an excellent way to invest your newfound wealth since you’re setting yourself up for success in the future.
Focus On Building the Habit First
It only makes sense that you struggle to save if you aren’t used to it. Getting ahead with your emergency savings gets significantly more manageable if you start slowly and focus on consistency rather than how much cash you’re depositing.
Open an Account, Even if You’re Not Ready to Fund One
If the problem stems from not having emergency savings because you can’t afford one, that’s okay: everyone has to start somewhere. But opening an account shows that you’re committing to this savings once it’s viable for you.
You’re also more likely to find money lying around for it, so you probably won’t go with weak savings for long.
Try a Spending Freeze
A small spending freeze can rejuvenate stagnant emergency savings. Just take whatever money you would have theoretically spent for a few days or even a week and put it directly in your emergency savings account.
The restraint will also teach you to build better money habits, putting you in the headspace of thinking about whether you really need something before you buy it.
Retool Your Budget
Anyone who wants to add more to their emergency savings will have to face the following facts: You’ll probably have to cut your spending in a few places. Check your budget and see where you can move some things around. The first places to look?
Going out to eat, subscription services, and any non-essential expenses. Cut back even $25 a month and redirect it into your emergency savings.
Automate Savings
One of the easiest ways to ensure you’re saving enough for emergencies is to never have that money touch your checking account. Set up automatic withdrawals, and never worry about whether you’re funding your savings enough or not.
Check Your Portfolio
If it makes sense for your situation, you could visit your portfolio and see if selling some of your investments to fund your emergency savings is feasible. It won’t be for everyone, but it can help you get a serious leg up on your savings in a pinch.
