We have talked many times about the importance of having an emergency fund. We never know what kind of events may happen that make us have a bad financial moment.
Creating an emergency fund
Our savings account must be different from our emergency fund, which must be used for emergencies. Some of them may be: Running out of work, having an accident, a disease, a problem with the car, etc.
It is not easy to start it but it is definitely necessary to have it, here are the 25 things you should do:
1. – Open an online savings account
Or in person, and even if it starts with just a couple of pesos, it’s about taking the first step.
2. – Use direct deposit
When we program our accounts so that we are automatically discounted apart for our savings is easier. In this way, we will not spend it on something else.
3. – Keep all the change you leave in your pockets
Always at the end of the day we have many coins left from all the purchases we made. Keep them all in a jar or a piggy bank and at the end of each month deposit them in your savings accounts.
4.-Use a jug or piggy bank for bad habits
If you have bad habits and need an incentive to leave them, here’s the best idea. Every time you make that bad habit, put a certain amount of money in your jar or piggy bank.
5. – Carry out a garage sale
Get rid of all those things that you no longer want or use a garage sale. The best way to get money and at the same time clean your wardrobe.
6. – Use social networks for sales
You may not be able to use the garage sale to sell all kinds of things. For this, you can put social networks on your side.
7. – Change the plan of your cell phone
Many times we pay a high monthly rate and do not take advantage of all the calls, data etc. It is better to get a cheaper plan and use what you save in that plan for your emergency fund.
8. – Take your own food to work
As we have mentioned before, not spending on food outside the home can save you money. Use that saved money to add it to your emergency fund.
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9. – Ask for an increase
Of course, if you ask for it, it is because you have enough reasons, so prepare your proposal well. Present your boss with statistics on your work performance, results and enough livelihoods that will make you believe that increase.
10. – Save your salary increase
Once you achieve that salary increase, use it for your emergency savings. It is normal to want to change your lifestyle once you know that income is higher, but it is better to use it in a good way. If you separate this part of your salary for savings, once an unforeseen event passes you will be financially insured.
The advice to obtain that fund will continue in the next publication on your emergency fund.