Building an emergency fund is one of the cornerstones of a healthy financial strategy. Emergency savings are there for you to rely on when you really need them.
Everyone needs an emergency fund, but they are especially important if you:
- Live on a single income
- Own a house and worry about sudden, expensive repairs
- Have ongoing medical issues that could interrupt work
- Are self-employed or a contractor
Even if these don’t apply to you, there are still plenty of reasons to build or rebuild an emergency savings fund. Whether you’re just starting out or you’re trying to put your fund back together, these tips can help.
1. Prioritize Savings in Your Budget
It all starts with your budget. If you’re living paycheck to paycheck, one of the best things you can do is prioritize building an emergency fund by planning for savings in your budget.
If you’re on a tight income, one of the best ways you can make more room for savings is by cutting out costs you don’t need anymore. Some of the first targets should be subscriptions you don’t need or costs like phone or internet plans where you don’t max out the data.
2. Sell Old Silver Jewellery and Heirlooms
When budgeting isn’t enough, you can kickstart your emergency savings by selling some of your valuables. You can make a lot of money selling silver jewellery or heirlooms like silver coin collections and silver flatware.
The quickest and easiest way to sell silver jewellery and other precious metal products is to find a reputable silver buyer. Buyers like Muzeum offer both in-person and mail-in services. When you sell your silver to Muzeum, they provide an on-site evaluation or an online quote to give you an idea of how much you can earn right away.
3. Sell Other Belongings Online
It’s not just jewellery and heirlooms made from precious metals that can net you a quick cash injection. A garage sale for gently used belongings may not get you the best price. Instead, consider listing them online and seeing what you can get. The proceeds can give you some elbow room right away.
4. Automate Your Savings
You’ve made room in your budget for savings. Now it’s time to automate them. One of the best ways to overcome temptation and make sure your savings are going into your emergency account is to set up automated payments. Line them up monthly or with your paycheck.
5. Use a High-Interest Savings Account
Let your money go to work for you! The point of an emergency savings fund is that it’s available when you need it, meaning it’s liquid and not invested in stocks or assets that go up and down. The last thing you want to do is sell stocks that are worth less than you bought them for because you need the cash.
However, you aren’t using it like a checking account, and you shouldn’t be worried about limited transactions. When you put your emergency savings fund in a high-interest savings account, you can let compound interest help you grow it without having to worry about liquidity.
An emergency fund is always there when you need it. It’s invaluable for a wide range of people and circumstances. Everyone should have some form of emergency savings.