A big focus of mine this year is to make sure I have a minimum of 3 months expenses saved as an emergency fund and to become totally debt-free. To help me get there, I’m constantly trying to think of different ways to save extra money. I’m focusing on one thing at a time, and my first goal is to have a small emergency fund stashed away so that I can rest easy whilst I focus on the rest of my life!Laura Olsen
Your emergency fund is your buffer against life’s little (or large) mishaps. How many times have we all had good intentions of saving and managing our money better, only to fall off the wagon when the car breaks down or the boiler packs in? Wouldn’t it be nice to have a stash of cash set aside just for occasions like this..?
Apart from giving you a bit of breathing room and peace-of-mind, having an emergency fund ensures that you don’t need to resort to borrowing to pay for unexpected expenses.
I plan to get my emergency fund saved in under 4 months, so it’s a bit of a challenge but I’m sure I’ll get it done! Here are 6 things that you can do to help with building up a fast emergency fund.Steve Smith
1. Write it down and make it a goal
This will force you to become focused on it and will help keep you motivated to get it done. How much do you want to save? A good starting point is £1000, but if you have expensive debts to pay (such as payday loans or overdrafts) or are behind on your bills then you should focus on getting caught up with those first.
I know I keep going on about goal setting, but successful people rarely attribute their success to luck or chance! They have usually set themselves a goal and become focused on hitting it.
2. Come up with an action plan
How will you build your savings pot? The best way to start is to set up a regular payment to yourself every time you get paid. Work out how much you can afford to save by perfecting your budget, then look for things that you can cut back on to help you to save faster.
You can go a step further by adding in some side hustles like eBay selling or using survey sites. Or you could even consider overtime or an extra job.
3. Track your progress
Get your notebook out and record your starting date. Work out a realistic target date, and then factor in some points to check in along the way.
As a guide, I plan on saving at least 25% of my goal every month so the target will be hit in 4 months.STIL
How to save an emergency fund fast!
4. Get your budget in order
The number one way to guarantee that you’ll hit your savings goal is to ensure that you have a bulletproof budget! Don’t stretch yourself too thin, but if you want to get intense with it then you might as well push yourself a little!
If you’ve already got a budget set up, then it’s time to review your bills and ensure you’re not overpaying. Shop around, and lock-in the best deals!
Also, don’t forget to claim cashback on things that you buy online.StellrWeb
5. Make it visual!
I’m a visual person, and having a tracker that I can see helps me to stay focused and accountable.
I personally like tracking my savings as a percentage, and I break down my total into 1% chunks that I can cross off once achieved. So a £1000 goal can be broken down into £10 chunks, which seems a lot more manageable!
6. Do what works for you
After taking into account all of the above, remember that you’re ultimately the one who’s responsible for hitting your goal of building your emergency fund. If you find that saving your money as cash works better than having it in an account then go for it! If you like to see it grow in your online bank account, then that’s great too.
Your goal may be £100, £1000 or £10,000 but it’s unique to you. It’ll take time to get there, but will be totally worth it for the peace-of-mind you’ll feel once you’re secure in the knowledge that you’re ready to face things that life throws at you.
Sometimes it helps to join in with a community that’s working on a savings challenge, such as on Instagram or Facebook, or you can have a look at some of the many savings challenges which seem popular these days!
So there’s no time like the present! Make the first steps to saving your emergency fund fast, so that the next time you need some cash in a hurry you don’t have to look too far and you won’t end up having to borrow.