Did you have to spend some of your emergency funds recently due to COVID-related expenses? If so, don’t worry. That’s what your emergency fund is there for! However, after working for years to save for an emergency, it can be frustrating to spend all of your hard-earned cash so quickly. So, here is how to restock your emergency fund quickly.
Cut Your Spending
First step: cut your spending. While it’s certainly possible to restock your emergency fund without slashing your expenses, you can build your rainy day fund much faster if you cut back.
To get started, take an in-depth look at your budget. Separate the necessary expenses from the nice-to-have expenses, such as clothing, going out to eat, gym memberships, and other luxury bills. Put that money back into your emergency fund until it is once again fully funded.
Start a Side Gig
If you are really committed to restocking your emergency fund, you may consider taking on additional work in order to make additional cash. Not sure where to start earning extra money? There are plenty of ways!
To start a side hustle, you may consider freelance writing, working a part-time gig, selling a homemade item, picking up extra shifts, or even selling items in your home!
Any extra cash you make can be thrown into your emergency fund. You’ll be surprised how quickly those extra dollars can add up!
The power blogging duo, thesavvycouple had a good list of side hustle ideas. I’d start there if you need ideas.
Put Your Savings on Autopilot
Did you know most savings accounts allow you to automatically deposit money and build your savings? So, you can save money without even trying!
Automating your savings is incredibly helpful when trying to restock your rainy day fund. Typically, you can log in to your bank account’s online portal and create an automatic savings plan. You can then enter in your savings goal, how quickly you want to reach that goal, and it will tell you how much you should save each month in order to achieve it. Once you find a monthly number you are comfortable with, you can set it so money is automatically transferred into your savings account. It literally could not be any easier!
Make Your Goals Visible
Lastly, decide what your emergency fund goal is. How big does your emergency fund have to be in order for you to be comfortable?
Once you decide on a number, make your goal visible. Write it down, and put it in a place where you can ensure you will see it. Particularly, put a reminder of your financial goals in your wallet – that way, anytime you are tempted to spend money, you have a reminder of what your priorities truly are. Finally, be patient. Saving several months of living expenses in an emergency fund takes time! With persistence, commitment, and some accurate planning, you will achieve your financial goals before you know it.