3 Ways to Jump Start an Emergency Fund

3 Ways to Jump Start an Emergency Fund

One of the biggest tenets of good financial health is having a solid emergency fund. But the reality is that many other financial priorities can get in the way ‐ especially if you have a hard time covering your bills each month. If you struggle with building the recommended 3 to 6 months for the unexpected fund, below are some creative outside‐of‐the‐box tips on how to jump‐start an emergency fund.

Sell Your Junk
Check your garage, closet, attic, and anywhere else in your house where items may lie that you have not touched once in the past year or so. Put it up for sale in an online marketplace (such as OfferUp or Decluttr) or have a garage sale. This is a great way to build an emergency fund as it not only gets cash in your wallet (or emergency fund) but it also removes the stress of added clutter in your home.

Store "Extra Cash"
Any funds that show up in your pocket outside of your typical paycheck can be put toward your emergency fund. This may include a tax refund, a work bonus, returned purchases, someone paying you back, a cash gift for Christmas or your birthday or even a small raise. This is an effective way to build that emergency fund because you did fine without the money before so you can go without it now while storing it away for the future.

Auto Save
Set your bank account to auto‐save a set amount of money out of each check. It is so easy to forget or put off saving money when things are tight. When you auto‐save, you are sure to prioritize building that rainy day fund.

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culled from articles by Riley Griffin, Suborna Panja and Kristina D'Alessio, Bloomberg News; and Andrew DePietro October 2018