When you come upon rough financial times you’ll want to rely on your emergency fund. Don’t wait until it’s too late to start building one. Here are several suggestions on how you can quickly build your emergency fund without breaking the bank.
- Get a dedicated savings account for your emergency fund. This way you can keep track of your progress. Instead of getting a savings account with your regular bank, get an online only savings account like at Ally bank, since they pay a higher interest rate.
- Take a certain amount off your paycheck and deposit it into your emergency fund. Get paid via direct deposit by your employer if they offer it and then set up automatic withdrawals from your checking to your savings so you won’t have to do it manually every pay period.
- Save your unexpected money. Put extra money like a work related bonus, an old loan that gets paid back, product rebate check, etc in your emergency savings account.
- Use a piggy bank. If that seems silly you can use those electronic ones that count your change as you insert it. You can also have a “curse jar” or find other creative ways to add money to your collection.