If you’re not happy with how much you have in the bank, there are several tips to increase your small emergency fund. Having at least three to six months' worth of income stashed is a protection. If you lose your job or face a major car repair, you won’t have to use credit or borrow from family. However, growing your account may not go according to plan. No worries. Here are tips to increase your small emergency fund.
1 Get a Temp Job
Getting a part-time job - even if only temporary - is one of the best tips to increase your small emergency fund. The money from your full-time job can go toward your living expenses, and your part-time income can beef up your savings account. If you can earn $500 a month from part-time work, that’s an extra $6,000 in your savings account.
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2 Have a Yard Sale
Do you have more stuff than space inside your home? Rather than put clutter on the curb for the trash man, turn your trash into treasure. Having a yard sale is one way to free up space and generate cash. If you live in an apartment or condo, list your items on Craigslist or set up at a community flea market.
3 Sell Your Gold Jewelry
I’m sure that you’ve seen the commercial for selling used gold for cash. Well, there is truth behind these claims. The price of gold has risen in recent years. If you have old or broken gold jewelry taking up space in your jewelry box, selling to gold buyers can put cash in your savings account.
4 Rent out Your Room
Do you have extra space in your home? Clear junk from your spare bedroom and rent out the space. Depending on where you live, you can get between $300 and $500 a month. If you already earn enough to cover the housing expense, that’s cash in your pocket.
5 Eliminate Cable
Maybe you can’t imagine living one day without cable. I promise, you’ll live. I’ve heard of people paying as much as $150 a month just on cable. Dropping service may not be a major savings on a monthly basis, but on a yearly basis, it’s a savings of $1,800. That’s a nice boost to your small emergency fund. If you keep Internet service, you might be able to watch your favorite shows with Netflix or Hulu Plus.
6 Go on a Spending Diet
For one month only buy what you need. What does this mean exactly? Basically, no frivolous spending. Find cheap entertainment, prepare your meals at home and use coupons whenever possible. The savings might surprise you. Take all your disposable income for the month and deposit it into your savings account.
7 High Yield Savings Account
You may have a good relationship with your bank, but what kind of return are you getting on your savings account? I bet you can do better. Look into online high yield savings accounts and compare rates. Online-only banks can afford to pay higher rates due to lower overhead. Thus, you’re able to maximize your savings quicker.
There is no denying the importance of an emergency saving. But to benefit from a savings account, you’ve got to have money in the account. Now’s the time to get serious about saving and make moves to fund your account. How were you able to grow your savings account?
