Start Your Emergency Fund
It Takes Forever to Save up $1,000
Last week, we talked a little bit about the benefits and “secure” feeling you have when you have a little bit of money in the bank. Establishing an Emergency Fund is not easy and trying to save $50 each week can get you to your goal but it seems like it takes FOREVER to get there. If you put $50 into your Savings Account every week, it will take you pay periods to get there. If you get paid every other week, that means that it will take you 10 months! If you are anything like me, that would drive you a little crazy. Something – anything – will pop up during the next 10 months and will derail you and get you off track. Here are three quick suggestions for getting it done much quicker:
Sell something. Take a little trip into your basement, storage unit or attic. I am willing to bet that you have some furniture, household goods, decorations, “old stuff” that you don’t really need anymore. Sell it! Put it on Craigslist, Facebook Marketplace or any of the “buy/sell” sites and give yourself a little breathing room in your house and add the funds to your Emergency Fund.
Get a Second Job. Honestly, I hate this one, but it works. For about 6 months, I had three part-time jobs. I worked over-night and helped a friend of mine sweep parking lots. I got up early in the morning and helped stock a fruit stand. I also worked evenings at a gas station as a cashier. I did all of this while I was working my regular full-time job at an accounting firm. I was exhausted, but I helped earn enough money to eliminate some expensive debt and cover our regular expenses. I don’t recommend that you do this for a long period of time but, if you can do it for a “season”, you can earn some extra money, get that Emergency Fund filled up and eliminate extra expenses.
Stop Eating Out. I am not a fan of this one either, but it works. We have taken a “vacation” from eating at restaurants for a period and it is amazing how much money we can save. It isn’t easy, but it gets to be a real challenge for us! We make sandwiches, make a big pot of soup and enjoy time together as we sit across the kitchen table. Take the extra money that you have budgeted for restaurants and put it into your Savings!
Saving money isn’t easy and it certainly is not fun.
But the peace of mind that you will gain from having a funded Emergency Fund is amazing. AND, the first time that you have to use it, you will fully understand how nice it is to rely upon your Savings Account instead of a Credit Card to cover those expenses.
If this makes sense to you but it just seems impossible or overwhelming to you, give us a call and schedule an appointment. We are experts at it and will be happy to offer you some basic direction and advice. It is what we do at Hollander & Associates.