How To Rebuild Your Emergency Fund
You’ve been good about putting money away in your savings. You always agreed with the concept of putting money away “for a rainy day.”
You created your Emergency Fund, to help you prepare for life’s unexpected expenses. And you were doing great until you had a significant emergency.
Whether it was you or your spouse losing a job, someone in your family getting really sick, or some other serious event, you found yourself needing that money badly. So you tapped into your Emergency Fund.
Fast-forward to today. The emergency is taken care of. Your life is pretty much back to normal. Except for one thing that is enough to make you cry…
Your Emergency Fund is gone.
The first thing to do is… don’t panic. There’s a saying that “there is no such thing as problems, just solutions.” And that’s what I’m going to help you with today.
Here are 5 Tips you can use to regroup, and rebuild your Emergency Fund:
Tip #1: Pay yourself before anyone else.
This means as income comes into your life, be sure to put some in your Emergency Fund first. Before you pay your bills, before you buy a new TV, before you go out to a nice dinner on the town.
Tip #2: Make saving automatic, so it’s easy.
The best way I know to save, is to set up automatic withdrawals from your checking account each month. With that cash going right into your savings account instead, you’ll start to see your Emergency Fund grow.
Tip #3: Revisit your family budget.
To find extra money to put away in savings, you may have to take another look at what you’re spending your money on. Look at each item to see if it’s really important. For each one you find that’s not too important, take that portion of your income and sock it away in savings.
Tip #4: Get a part-time job temporarily.
Another great way to find money you didn’t have is by creating it. Which you can do by getting a small part-time job in addition to your existing job. Then put away every dollar you make from your part-time job, until you have your Emergency Fund back where you want it. Then quit the second job if you want. Or keep it to have that extra cash coming in every month.
Follow these simple tips, and your Emergency Fund will be back to normal before you know it. And you’ll be able to sleep a lot better knowing you took control of your finances.