5 Simple Methods to Sneak Extra Cash Into Your Emergency Fund

In need of a healthier emergency fund? How to build one with no stress.

We all need money rolled into one saving account for a rainy day. You never know when you will lose your job, get stuck at a home repair, or walk to your driveway and find your car won’t start.

Without a Emergency fundYou could get into serious debt and ruin your finances for years. A better bet is to stash the cost of living in the bank for three to six months for the unexpected. And here are a few simple ways to increase your cash reserves – without taking too much of yourself.

1. Maximize your forced pandemic savings

Many people changed their lifestyle during the pandemic. Maybe you’re not commuting to work right now, or you’ve replaced movie and restaurant trips with quiet nights at home to be on the safe side. All of these forced savings could be an excellent opportunity to replenish your emergency fund. Of course, once the pandemic ends, you’ll need or want to spend those expenses again – and that’s fine. The key is to take advantage of forced savings while this is the situation you are dealing with.

2. Reduce an expense that can be replaced with a cheaper alternative

If you cancel your cell phone plan, you may not be able to communicate with others. However, if you cancel your gym membership, you can still exercise. Look at yours budget and see if there is an edition that you can replace with a free or inexpensive alternative. For example, you might be able to cancel a cable plan that costs $ 80 per month and sign up for $ 15 monthly streaming service instead. Returning to this cellphone example, you probably can’t do without a phone entirely, but you may be able to sign up for a cheaper plan.

3. Use your stimulus check

The legislature is working on sending a third one Stimulus test to the public. If this succeeds, there is an easy way to increase your savings – provided you don’t need money for basic necessities such as groceries and medicines.

4. Don’t spend your tax refund

Most people who file a tax return receive a refund. Usually getting money back from the IRS is an easy way to increase your savings without limiting anything else.

5. Save your raise

Did you get a raise this year? If so, you may have spent the extra cash on treats or entertainment. Well, it’s time to quit this practice if your emergency fund needs work. The good news is that at this point you are probably not used to this increase, which means you should be able to live without spending it. Do not incur any additional costs in the short term. Instead, turn that paycheck into savings until you are more satisfied with the amount of rainy daily money you have.

Emergency savings are essential. Without that money, you could really find yourself in a world of debt if life brings you unpleasant surprises. The good news is that funding your emergency savings may not be as difficult as you would expect. And once you’ve managed to reach a level of savings that you’re happy with, the security you enjoy is well worth every sacrifice you’ve dealt with along the way.