An emergency savings account is a very important thing to have. It can provide you with the money that you need in case of a financial emergency or loss of job. Ideally, you should have enough money in your savings account to cover at least six months of monthly expenses.
How does your emergency savings look? If it is a little short or non existent, Tina can help. Here are some great ways to kick your saving into gear and get that savings account stocked up. Let’s take a look.
1. Stop Dining Out At Lunch
There are a lot of reasons to start taking your lunch to work. The biggest is the savings. People spend an easy $10 to $15 day at lunch. That is $200 to $300 a month. If you were to brown bag it and put that money into savings, you could have $2400 to $3600 extra money in your savings account. That amount does not even take interest into account.
There are also a bunch of side benefits to taking your lunch to work. Chief among them is the fact that your meal would be healthier. Every greasy restaurant meal that you can avoid is better for your body.
Also, think for a minute about the time savings. If you take your lunch to work, it will take you maybe 20 minutes to casually eat. Then you have 40 minutes to do with as you please. Get extra work done or take a little nap. The choice is yours.
2. Use Automatic Transfers
Pretty much every bank allows you to set up automatic withdrawals. Set up a withdrawal for the day that you get paid, assuming that you get paid electronically. In this way, the money will be gone before you even notice it. You can not miss what you do not see.
Even a small amount of money can make a huge difference if you do it regularly. Let’s say that you deposit $40 out of each check. You will never miss $40 but if you get paid every two weeks, in one year you will have $1040 in savings. Over 1000 dollars from just saving forty dollars a check.
3. Sell Some Property
If you look around your house right now, how many things would you find that you never use. Probably quite a bit of stuff. Now might be the time to get rid of it. Every day you hold on to this stuff, it loses value. Sell it on eBay or perhaps using the Letgo app.
If you have enough, lets call it what it is, junk laying around, consider a garage sale. In just a few hours on a Saturday morning, you might come up with 300, 400 or maybe even 600 dollars just by selling the stuff that you no longer want or need. Be sure to check with your city and/or HOA to make sure that garage sales are allowed and do not need special permission or permits.
4. Get A Part Time Job
Not having a savings is a huge problem and one that you should rectify as soon as possible. Without the savings in place, if the worse were to happen, you might find yourself in real trouble.
Nobody likes the idea of a part time job but getting one for just a month or two could allow you to sock away some good money that could hold you over in an emergency.
Look at places like Target or Walmart which are easy earning opportunities. Not only can you make a decent wage, but you may be able to save even more money by using store discounts.
5. Use A Change Jar
Pretty old school method but it still works. At the end of your day put all of your spare change into a jar. Pennies are not going to add up to much these days, so let’s modify this method by also putting your singles into the jar. Keep five dollar bills and up.
This can easily add up to about $2 a day. Money that you will never miss because it was just change. Every few months, take the change to your bank, lots of them have free coin sorters now, and deposit it. At $2 a day, that is an easy $120 every couple of months over 700 dollars a year.
6. Cut The Cord
Are you as sick of this expression as me? “Cutting the cord” has become a phenomenon. I might be tired of the phrase but it sure is a good way to save money.
Netflix and Hulu are both about $10 a piece. The average satellite bill is $100 a month, you do the math. You can save over one thousand dollars a year by switching to your streaming service. Not sure if you will like them, put your satellite on hold and try out one of the services for a month. Save money and watch what you want on your tie schedule without having to program a DVR.
7. Have A No Spend Month
Commit one month to not spending any unnecessary money. You can put the money that you saved, probably several hundreds of dollars, directly into savings.
The greatest benefit to the no spend month though is the reset effect it will have on you. We are so used to just spending and spending that it becomes second nature to just buy what we want and what we do not need. Take a month off of spending and you will find that the results filter into the next months. You will fid yourself spending less and questioning money decisions more.
Tina’s Last Word
Saving for an eventual emergency is extremely important but so many do not even have a single dollar in a savings account. This is a recipe for disaster and is why the payday loan industry even exists. Don’t let yourself be at the mercy of short term loan lenders in an emergency. Take steps now to start saving, even just a little and get some security.