Many people in this world live lavish lives and have a huge chunk of money in their savings accounts are kept hidden when one day they realize that almost all of their money was spent on vacations, expenses, cars, and doing useless stuff. Now they have no money left behind. They have to someday or the other have to create emergency funds for their personal security and for priority wealth management.
For this situation to not happen to you, emergency funds are the option. Every person should have their emergency funds parked somewhere safe that they can get access to easily when the time is harder.
For serious wealth creation, you have to make systems and automation so that you are free from the money aspect of life and get access to the things you love to do.
Look life is short and if you (leave the rest for a minute) every time run to make money for let’s say 35 years. What kind of life you had lived in your youth – analyse it yourself.
It’s very important to understand that every idea comes from the thoughts you hold in your mind.
You have to make rich thoughts and the wealth will follow you for sure.
So the topic we will learn now is for creation of emergency funds, not in decades but in 3-5 years timeline so that you can rest and in peace while the money is being made on automation and you are free from having tension or blood pressure rise if any mishappening occurs.
Now, here are 20 ways as mentioned in the title —
1. Invest in a money market account: A money market account is a type of savings account that often comes with higher interest rates than a traditional savings account. This can help you earn more on your emergency fund over time.
2. Set up direct deposit: Have a portion of your paycheck automatically deposited into your savings account each week. This can help you reach your goal faster and make it easier to stick to your budget.
3. Make extra money with side hustles: If you have some extra time, consider using it to make some extra money. You could start a blog, do some freelance work, or even start a small business. Any extra money you make can be used to beef up your emergency fund.
4. Cut back on expenses: Take a close look at your budget and see where you can cut back on expenses. This will free up more money that you can use to save for your emergency fund.
5. Sell unwanted items: Do a purge of your home and sell any unwanted items you may have lying around. You can use the money you make to add to your emergency fund.
6. Get a cashback credit card: Use a cashback credit card for your everyday purchases and earn rewards that you can use to contribute to your emergency fund. Just be sure to pay off your balance in full each month so you don’t end up paying interest on your purchases.
7. Participate in surveys: There are many online survey sites that will pay you for your opinion. You can use the money you make from these surveys to add to your emergency fund.
8 . Invest in high yield bonds: High yield bonds are a great way to earn interest on your emergency fund without having to take on too much risk.
9 . Join a rewards program: Some companies offer rewards programs that allow you to earn points for every dollar you spend with them. These points can usually be redeemed for cash, which you can then use to add to your emergency fund.
10 . Automate your savings: One of the best ways to save for an emergency fund is to automate it by setting up automatic transfers from your checking account into your savings account
Automate your savings – Have a portion of your paycheck deposited into a savings account each month so you don’t have to think about it.
11. Set up automatic transfers from your checking account to your savings account so you don’t have to remember to do it yourself.
12. Treat your savings like a bill – Make it a priority to pay yourself first by setting up a budget and allocating a certain amount of money each month to your emergency fund.
13. Get creative with your income – If you have extra money from side hustles or selling unwanted items, put it towards your emergency fund.
14. Start small – Don’t feel like you need to save a large chunk of money all at once. Even $5-$10 per week can add up over time!
15. Make it automatic – Set up automatic transfers from your checking account to your savings account so you don’t have to remember to do it yourself.
16. Invest in yourself – Use some of your emergency fund to take courses or invest in other resources that will help you earn more money in the long run.
17. Live below your means – One of the best ways to save money is to simply spend less than you earn. Track your spending and see where you can cut back in order to boost your savings.
18. Make it a game – Try setting yourself a challenge to see how quickly you can reach your goal. This can help make the process more fun and exciting!
19. Set a deadline – Having a specific date in mind for when you want to have your emergency fund saved can help keep you motivated and on track.
20. Talk about it – Telling others about your goals can help hold you accountable and also give you some much-needed moral support!
Tips to act on building the emergency funds immediately –
1. Invest in a short-term bond fund.
2. Set up auto-transfer from your checking account to a savings account.
3. Have a garage sale and put the proceeds into savings.
4. Cut back on unnecessary expenses like eating out and entertainment.
5. Work extra shifts or get a part-time job.
6. Sell items you no longer need on Craigslist or eBay.
7. Refinance your home to lower your monthly mortgage payments.
8. Take advantage of employer matching programs for 401(k) or other retirement accounts.
9. Get cash back from credit card rewards programs.
10. Borrow from family or friends in case of an emergency