expenses are a part of life. These expenses can have a huge impact on our
current budget and future goals. Sometimes these overheads can even cause significant
damage to our wealth. Thus, we should create an emergency fund depending upon
our income and possible risk factors. You have to maintain a backup to cover
the most practical ways to kick off a sustainable emergency fund.
You don’t have
to be super conscious about your expenses to create an emergency fund. All it
sometimes takes is a habit of making smart financial decisions. You will save
money for your emergency fund as long as you put your income to the best
possible use. In addition to your usual savings you plan to put away from your
salary, you could try to cut down spending in other smaller ways. For example,
if you’re buying a coffee everyday, why not try and cut this down to one or two
days per week instead. Or start making your own lunches instead of always
eating out. By changing small lifestyle habits like this, you could be
surprised by the small fortune you could end up saving.
The easiest way
to kick start your emergency fund is by selling unwanted things in your house.
A single look at your home will reveal a lot of things that do not provide any
productive value to you, for example- unused exercise equipment, old gadgets
including laptops and tablets, and toys which your kids have now outgrown can
all be sold for a surprising amount on websites such as eBay. The instant cash will boost your
savings, and you will recognize a substantial increase in your emergency fund.
Look out for
one time incomes
fund can be enlarged by adding in a few onetime incomes. These income sources
are not regular, but they do provide a quick boost to your funds. You should
use every opportunity to earn those odd bucks like online surveys and caring
The majority of
people hate the idea of spending their extra time in another job, but it can be
a boon for your finances. Your alternative job doesn’t have to be high paying
as it is only fulfilling the task of extra funds collection. It is focused on
revving your savings without further cost-cutting. Your hard work will pay for
your dues in critical situations while you deal with the expenses. Of course,
it’s always important to consider work-life balance when getting a second job
but if you feel you can find the time for another job, then it can be a great
way to achieve extra income.
develop a sound perspective towards money to lessen the chances of financial instability.
If you do find yourself in need of a small cash boost, you could also apply for
a same day loan if your emergency fund is
not able to cover that unexpected expense. As with any form of credit though,
you should be sure that you’re in a stable enough financial position to be able
to make the agreed repayments.