5 Ways to Jump-Start Your Emergency Fund

5 ways to Jumpstart Your Emergency Fund

Sometimes life can throw curveballs your way that could negatively impact you financially, such as a job loss, medical visits, or car/household repairs. To financially protect yourself from unexpected events, it is recommended that you save enough funds to cover three to six months’ worth of your living expenses. These savings are generally set aside in an emergency fund. If you have not started putting away money towards an emergency fund yet, here are five simple ways that may help jump-start your emergency savings.

Take it one day at a time.
It can be overwhelming to think about saving at least three months’ worth of your living expenses, so try setting small goals for yourself instead. For example, by aiming to save $3 – $4 a day, you would save $100 a month, giving you a $1,200 total at the end of the year. And when you can, increase your savings until you hit your goal.

Cut out unnecessary expenses.
Assess your spending habits to determine if there is an expense that you can do without, such as a streaming subscription or your daily cup of coffee from the shop, and redirect that money towards your emergency fund.

Sell items you no longer need.
If you have items that you no longer need and are in good condition, try selling them through a yard sale or an online marketplace. If selling online, make sure you are going through a secure website and be aware of potential fraud.

Set up an auto-transfer.
An easy way to keep yourself on track with your savings is to automatically transfer a specific amount of your paycheck directly into your emergency savings account. By doing so, you will be less likely to spend it.

Turn your passion into a business.
If you can pick up a freelancing opportunity or have a hobby that could turn products into sales, it could be a great way to earn extra cash while doing something you enjoy.

To consider which First Mid savings accounts might fit your needs, take a look at our Retail and Smart savings accounts.

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