Not having money for emergencies can be extremely stressful. But a $1,000 emergency fund will put you in a better place than 57% of Americans – and it is a great goal to get started with. It will give you peace of mind, and it means you don’t have to take out a 20% interest loan (a.k.a. use a credit card) the next time you face the unexpected.
Getting started on an emergency fund doesn’t have to be a long slog. Set a one month goal – just one month! There are a lot of things you can cut out for a month that you might not be able to long-term. This will get the ball rolling, and then it is just a matter of adding a little bit every month to keep it topped off.
Below are twelve ideas to quickly generate some cash to get your emergency fund started.
12 Tips to Generate Quick Cash
- One month pause on streaming/subscriptions/memberships. Obviously you don’t want to do this forever, but can you get along without them for one month?
- Have a “no spend” month for clothes, household items, etc. Can you avoid buying new clothes, new household items, or other “stuff” for a month? It can be a good opportunity to shop your closet for things you forget about that will now seem new to you!
- Pick up extra hours at work. Again – it’s only temporary!
- Ask friends and neighbors if they need pet or baby sitting. You don’t know until you ask, and they might really appreciate having someone they know to do these tasks.
- Sell unused items online. You’ll reduce clutter and make some money – it’s a win win!
- Return new items with tags to the store. You bought it, you meant to wear it or use it, but you never did. Now is the time to see if you can get the money back.
- Have a “no meals out” month. Get creative in the kitchen. If you paused your streaming subscriptions, you’ll have extra time to research recipes!
- Minimize grocery buying by using up pantry items. We all have those things in the back of the cupboard that we haven’t gotten to – now is the time to use them up before they expire.
- Minimize grocery buying by planning meals. Americans throw away 32% of their groceries, in large part because things don’t get used in time. Planning your meals in advance can help you use all the food you buy.
- Have a yard sale. Decluttering and money at the same time!
- Cancel a planned outing and find a free way to have fun. It’s not forever – but while you are building your emergency fund think of fun, creative ways to spend time with friends and family that you can do for free or cheap.
- Quit smoking and/or drinking for one month. Easier said than done – but if you can do it, it can make a huge and lasting change in your finances. Even just reducing these items can be a game changer.
Think about which of the above ideas are things you can do. Estimate how much you might be able to get from each one. When you add them up, are you getting close to $1,000? If not, take another look at the list, think of more ideas, or adjust your initial goal to something that is more manageable. Even $500 is a place to start!
The Buddy System
Get friends and family involved in the effort. If everyone is aware of the goal, you can all be working together to get there. You can even make a game out of it by challenging your spouse – or a friend who wants to build their own fund – to a friendly competition to see who can raise the most money. Have fun with it – and think about how great it will be seeing that number in your savings account, and the peace of mind you will have knowing that the next time something unexpected happens you’ve already got it covered.
Keep Building Your Emergency Fund – Automatically!
Once you have that money in a savings account, set up monthly automatic transfers from savings to checking. Whether it is $50 per month, or $100, or $200 or more – you need a built-in way to replace that money for when you do need it. Automatic transfers mean you won’t even have to think about it — you can “set it and forget it!”
What happens if you don’t have any sudden emergencies and the money keeps growing? Once you have 3 to 6 months of expenses in the bank – congratulations, you now have a fully-funded emergency fund! Why 3 to 6 months? Because if you lose your job that is how long on average it takes to get a new one.
Building an emergency fund is one of the first steps towards putting yourself in control of your finances – and your future. I can help you get there! I offer a free, 30-minute introductory call, and affordable, up-front pricing. Schedule your call today!
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“57% of Americans can’t afford a $1,000 emergency expense, says new report.”
https://fortune.com/recommends/banking/57-percent-of-americans-cant-afford-a-1000-emergency-expense/
“Americans throw out 32% of the food they buy.”
https://www.fastcompany.com/90825190/americans-throw-out-32-of-the-food-they-buy-heres-how-to-avoid-so-much-waste
