Best Ways to Save Money for Any Type of Emergencies

Friday, July 20, 2012

Best Ways to Save Money for Any Type of Emergencies

Prediction is difficult especially about the future. No one can predict what does will be his/her financial status at the time when you really need money. It will be better if you are prepared for tackling these kinds of situations. Having enough savings to face any unexpected or unfortunate event is a good strategy, there can be chances that your saving is not enough to handle such situation and you need more money. In that case you can opt for short term loan such as payday loans which can be repaid on pay day. Saving especially for emergency is known as emergency fund or financial self-insurance. To do that, you have to follow some tricks and tips. Here, I am describing some of them.   
Make a start: try to start, no matter how small it is. It will grow slowly with each pay check, and motivate you after seeing you’re saving.

Opt for reward scheme of credit card: if you are having credit card without reward scheme switch to that and then shift your reward to emergency fund account.

Sell unused stuff: organize a garage sale to sell your old stuff and deposit the profit into emergency fund.

Get rid of unnecessary expenses: try to leave out unnecessary expenses such as having large number of channels on cable and most of which you don’t ever watch. You can save money by getting rid of them and transfer the saved amount into financial self insurance fund.

Work for extra hours: if possible work for extra hours to fetch some money and deposit that for emergency period.

Set a priority: after your regular expenses and bills, emergency fund must have the highest priority. Instead of buying new cell phone when the old one is already in good condition, try and stash money.

Save more and spend less: decrease your expenses and try to save more, by cutting down your extra expenses.

Clear your debt: if you are done with car debt or mortgage debt, take that amount and deposit in your savings, it will not affect your budget.

Restrict your access: if you are tempted to spend from your emergency fund, it is better to limit your access and put into account from which it is difficult to get it out.

Go for payroll deduction: if your temptation is stopping you from depositing amount in your emergency fund, you can opt for payroll deduction account which will directly deduct some amount from your pay check.

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