Does it concern you that you don’t have an emergency fund? If so, it's not too late to change that! Building an emergency fund can offer you peace of mind as well as the cash you need for a rainy day. Here are 5 ideas to help you easily and efficiently build an emergency fund. Here is how to get started:
1. Set your goals.
Write down what your goal is for your emergency fund. Start low so it feels like something within reach. For example, choose an amount like $500. This would be enough to cover the cost of an appliance if one were to die on you or an unexpected bill.
2. Start with “small change.”
Start your fund by collecting your change. Every time you make a purchase and have change from the transaction, save it. If you find change around the house, store it away and save it. After 30 days, take your change and cash it in. Take the cash and add it to your emergency savings.
3. Go on a week long spending fast.
For one week, vow not to spend money. Instead, pack your lunch. Make your own coffee. Don’t buy any new clothing or entertainment items. Then, take the estimated cost of these items and put it in your fund. For example, if you spend $30 a week on lattes, take that $30 instead and place it in the fund.
4. Set aside 10 - 15% of your weekly income.
When you deposit your paycheck, take 10 - 15% off the top and put it in your emergency fund. It will be easier not to spend it if you don’t even see it in the first place. As you get comfortable with this amount, you can bump it up to 20% or more.
5. Sell what you don’t need.
Do you have a bunch of items around the home you don’t use anymore? Sell them! Ebay, Facebook Buy & Sell groups, Kijiji and Craigslist are a great way to unload unnecessary items. Take the money you make from your sales and add it to your emergency fund.
When you give these tips a try, you can quickly and easily build your emergency fund! Having an emergency fund on hand can help you feel more secure and prepared for the future as well. Give these tips a try and see what you can save. You are sure to be amazed!
What are your tried and true ways to building an emergency fund?
Have you attempted to live by a budget and failed? Maybe you forgot to factor in a few splurges? I personally think you're bound to fail, time and time again, if you leave out the "fun factor" of a budget. After all, no one likes boring! If you're realistic, no matter how much you want to keep within your budget and avoid spending on unnecessary things, you are bound to give in to your temptations and splurge at some point. Never mind the feeling of guilt if you spend some of your gas money on a night at the movies!
So even allotting a small amount of cash for splurges each month can actually encourage you to enjoy frugality and your budget to it's fullest because you may be forced to get creative with the activities you are able to afford. Being creative is always fun and quite often makes you think up brand new adventures!
Here are the three splurges I think you should include in your spending:
Entertainment
It would be unrealistic to think that you can have a budget and not factor in some form of entertainment. After all, we all crave some adventure and fun in our lives. Without an entertainment "allowance" you'll be setting yourself up for failure in the budgeting department. Whether or not you set aside $200 or $5 a month, as frugal people, we tend to come up with cheap and entertainment ideas anyways! I've got a big list of Cheap Family Activities for you to check out here!
Pampering
Having a budget and being frugal doesn't mean you have to deprive yourself. Give yourself a break and factor in some pampering. This could mean a trip to the "fancy" hair salon every 6 months or even a bi-weekly house cleaning service! Or, even if at this point in time your budget cannot allow much at all, check out my ideas for Beauty on a Budget.
Dining out
Unavoidably, there will be times each month when you find you have to eat out. Why not plan accordingly and have some money set aside in your budget for those occasions? If you're like my husband and I, you enjoy eating out. We set aside money so that we can enjoy a dinner out once a week...without feeling guilty! I even factor our weekly dinner out into our meal plans so I'm not buying extra food for that day, which could go to waste.
Of course, your income and expenses will determine how much can be set aside for splurges. But start off small, then increase as you can. The longer you stick to your budget, the more splurges you'll be able to fit in. Use your splurges as motivation and rewards to keep you working at your financial goals!
How do you work splurges into your budget? What are some of your ideas for cheap fun? Let us know in the comments!
