4 Quick Ways to Build an Emergency Fund and How to Choose the Best Savings Account
Unexpected events happen to everyone. The best savings account is one used as an emergency fund, established to help you avoid going into debt and give you peace of mind. Surprise expenses like medical bills, home repairs, car repairs, and more can have a significant impact on your financial security. Ideally, you should have three to six months of expenses saved up.
So, what’s the fastest, most effective way to put money in your savings account? These four easy tricks can help you build your rainy-day fund so you’re well prepared for any emergency.
- Make a Budget, and Stick to It
Look at your monthly income and expenses to see where your money is going. Then make a budget and set a savings goal for each month. Making small cuts like canceling unnecessary subscriptions or memberships and keeping the thermostat off unless absolutely necessary can provide immediate savings.
- Sell Unused Items
Write up an ad and sell the things you no longer use on Craigslist, Facebook or garage sale apps like OfferUp or Letgo. If you take a look around the house, you’ll be amazed at how many unused items you have that may generate some cash. Any money you make from getting rid of unused items should go straight into your savings account.
- Get A Second Job or Side Hustle
There are lots of ways to earn a quick buck. Online surveys, focus groups and research studies not only help you add a few dollars to your emergency fund, but you may get free stuff to enjoy as well! Driving for Uber or Lyft, babysitting, dog walking, pet sitting, or picking up a shift or two at the local grocery store can add hundreds of dollars to your savings account each month. Are you good at writing, editing or graphic design? There are plenty of sites on the internet looking for freelancers, and you can pick and choose how much or how little you want to work.
- Deposit Part of Your Paycheck Directly into Your Emergency Fund
Diverting money into your savings account with direct deposit or payroll deduction are also virtually painless ways to save. You don’t have to worry about physically making a deposit, nor do you have to worry about spending the money.
Choosing the Best Savings Account for You
Whether you’re putting money away for a rainy day or saving for a dream vacation, the experienced financial professionals at Clark County Credit Union can help you determine the best savings account to meet your needs. Contact us today at 702-228-2228.