Build an Emergency Fund

When the government partially shut down last January, we learned that many Americans didn’t have even one paycheck’s worth of savings to tide them over. Having an emergency fund is essential to ensure funds are available when unexpected financial hardships occur.

Put It in Writing

For many people, writing it down makes saving money for an emergency fund real, not theoretical. Talk with your loved ones to discuss how much you need and solicit ways to find the extra dollars that can add up over time. Make a chart and track how much you’re able to save each month toward your goal.

Show Me the Money

Consider selling unwanted items via the Internet or smartphone apps, you can increase your disposable income — and your emergency funds — quickly. Consider having a yard sale. Save any raises and bonuses from work. Keep your car an extra year or two to go without monthly car payments. Keep your phone, too, with new smartphone prices soaring.

Make Small Sacrifices

Passing on one $5 designer latte, one $10 lunch and one $75 dinner every two weeks are other ways to increase your funds quickly.

Make Bigger Sacrifices

Still looking for free money to increase your emergency funds? Maybe you need to free it up by first creating a budget that includes your income and itemized expenses. Little adjustments add up. Scour your phone and cable bills to eliminate unneeded services. Study your clothes and grocery bills to find additional savings. Write down every dime you spend to get the best idea of where your money goes.

Generate More Income

There are many opportunities online to get paid to answer surveys and participate in market research. You might be surprised how much earnings from a second part-time job can help your increase your fund.

It is not easy to put in extra hours or making sacrifices when it comes to living within a budget, but knowing you have that emergency fund when you need it will help you breathe a little easier.