Tips to Build Up Your Emergency Fund and Avoid Financial Disaster

November 20, 2020 | June Mckaig

build emergency fund

 

The idea of setting up an emergency fund is gaining popularity among Americans, which is undoubtedly a good thing. Still, the majority of Americans live paycheck to paycheck and, leaving them unable to put money aside for an emergency fund. And when they are hit with an emergency, they won’t be able to cover $1000 on the spot. And emergencies in America often tend to cost more than that.

So if you’ve been contemplating about setting up an emergency fund – stop hesitating and start building one up right now. If recent history has shown us anything at all, it’s that we do not know what awaits in the future. We have to be as armed as possible against whatever comes our way.

Build Your Emergency Fund Up With These Great Tips

The best weapon against emergencies is a well-funded emergency fund. But what good is starting an emergency fund if you have no idea how to grow it? Here are a few tips to help you grow your emergency fund.

Calculate How Much You’ll Need

Review your expenses. How much do you spend regularly on food? What is your rent or mortgage? How much are your bills? Financial experts say to have at least three to six months’ worth in your fund. Basically, think of it like this, if you were to lose your job today, how much would it take to keep you staying afloat while you are unemployed? That’s the amount you should be aiming for in the first step.

Reduce Unnecessary Spending

Do anything and everything to fund that minimal amount as possible. The easiest way to do this is by taking up budgeting. First, you figure out where your money is going each month, then you figure out where you can cut the expenses, lastly, you strip your budget to bare bones and put all the money you’ve managed to save in the emergency fund. A barebones budget means you should only be spending money on essentials like rent and food. Ideally, you should be able to fund this mini-fund in a couple of months. If you can’t cut down your budget that much, then at least figure out a monthly minimum you’ll deposit into the fund until it’s fully funded

Start Gradually Increasing Your Fund

After the minimal amount is funded you can start breathing freely and loosen your belt again. That doesn’t mean you can stop funding it.

A healthy emergency fund should be able to comfortably cover at least a month of your expenses. But I’d recommend you fund at least 3 over time. Because if recent events have taught us anything, it’s that losing your job can be the biggest emergency there is – and most aren’t safe from it.

Learn: 6 Careers With No Degree That Make $50,000.

Look Into Quick Cash Payday Loans

Unfortunately, emergencies are not likely to wait until you’ve got your emergency fund ready to go. If you’re still stuck in the paycheck-to-paycheck living situation when an emergency strikes and find yourself in need of quick cash, then you should think about taking out quick payday loans in Florida.

 

emergency plan budget

 

What Is A Payday Loan?

Payday loans are designed to help you when you are in between paychecks but need quick cash. If you are experiencing emergencies or unexpected situations, you can use a payday loan to help. Situations like late utility bills, late rent, or sudden home repairs are all examples. This loan differs from other loans like title loans because there is no collateral needed.

Learn more from our Ultimate Survival Guide to Financial Emergencies.

How Do I Get Fast Payday Loans Near Me?

The process is nowhere near as complicated as a traditional loan can be! It all begins with you going on the Fast Payday Loans, Inc. homepage and filling out the online form now! Once submitted, the form will be sent to the payday loan location nearest to you and a loan associate will give you a call.

During the call, the loan specialist will discuss your loan in detail and go over the required items. Those required items are:

  • Your government-issued ID or driver’s license;
  • A blank check from an active checking account in your name;
  • Your most recent pay stub.

When you have the items, you will come see us at a Florida payday loan near me. We will examine your items and see if we can approve you. If we can, you will receive the amount you qualify for right on the same day – within 30 minutes or less.

Growing an emergency fund is not an easy task by no means. It takes discipline and patience. But it is very important to have this fund established. And it’s also important that it is separate from your savings. This fund is specifically set for emergencies. And as difficult as it sounds, if you have a good plan in place, you could actually make headway to growing your fund. Keep these tips close to you when you start to grow your emergency fund.