8 Amazing Tips to Save Your $1000 Emergency Fund
The first step to achieving financial stability is putting emergency savings in place. Having an emergency fund protects your financial growth from life events and disruptions of your progress. The first step to building wealth is to get your $1,000 emergency fund in place as fast as possible. If you don’t have your emergency fund in place, here are 8 amazing tips to save $1000 for your emergency fund.
Tip #1: Sell Some Stuff!
The first tip to saving your first one thousand dollar emergency fund is to sell some stuff. There are several services such as eBay, Etsy, Craig’s list and even garage sales; that one can take advantage of in order to get rid of the mounds of stuff we surround ourselves with. It is shocking to see just how many people own gaming systems, designer bags, and other luxury items yet have zero savings preventing them from being on the side the road with their finger extended. Selling stuff is never been easier, so go ahead and part ways with the things that are holding you back from accomplishing your goals.
Tip #2: Sacrifice Your Comforts. The next tip is to sacrifice things that are simply around for your own comfort but not adding value to your life. Things in this category include cable television, cell phone insurance, music subscription’s, Netflix, and various other things that could be money going into your emergency fund.
Tip #3: Freeze Your 401k. Freezing your 401(k) at your employer is another option to get a quick inflow of extra savings. It doesn’t make sense to set money aside for your 65-year-old self if you’re one flat tire away from destruction. Get your emergency fund in place and use those savings to protect yourself, give yourself a financial footing, and turn emergencies into inconveniences.
Tip #4: Stop Budgeting Backwards. Most people budget backward. That is they write down their income deduct all their bills and keep the remaining balance in the checking account. Later they scramble to figure out where the money went. The proper way to budget is to only spend money on items that you’ve already have given yourself permission to spend that money on. This eliminates surprises, lost money, and wondering why your balance isn’t what you thought it should be.
Tip #5: Get a Second Job. The most direct way to generate an extra thousand dollars in income is to gain more income by getting a second job. All income from the second job can be used to fill up your emergency fund. The key purpose of the second job is to save, so just make sure that the extra income isn’t lost as extra money to spend.
Tip #6: No Unconcious Spending. Now that you are budgeting, selling things, and taking extra work; you should be conscious not to allow dollars to escape you. It’s the small cuts that hurt the worse. Don’t let your checking account suffer a death by a thousand cuts. Examples of this would be morning coffee, bottled water, eating lunch out, and allowing your friends to dictate your spending for spontaneous weekends.
Tip #7: Fix Your W4. In a previous post, I listed the IRS’s withholdings calculator to assist you in determining the proper amount of taxes you should pay. No one should pay more than their share of taxes. If you text refund is greater than $500 you need to review your W-4’s.
Tip #8: Use Apps That Make Saving Fun.
Qapital is an app that I love. Not only does it have built-in savings connected to your bank account, but it also has stunning visuals that allow you to upload pictures of your goals and save towards those individual targets. The beauty of this app is that it allows you to decide how much you would like to save by using triggers.I currently use a dollar a day for two different goals and five dollars a week for another goal. Everyday savings grow and it’s motivating to see daily progress towards images of my goals.
Hopefully, these tips help you get your emergency fund in place. Please subscribe and comment below!