How to Create an Emergency Fund Fast!
It is very easy to build your emergency fund. Emergency funds create a financial buffer in times when you need it most and allow you to use your own money instead of charging credit or taking out additional loans. A good rule of thumb is to have enough money in your emergency fund to cover between three and six months of living expenses. If you are finding that you don’t have enough saved just yet, maybe it’s time to save more into that fund. The easiest way to do this is to continuously deposit money into a savings account.
Below are some easy steps that you can take to save more in your Emergency Fund.
1. Pay yourself first (PYF): Set-up direct deposit for your payroll. Once you have that established, split your payroll so that a small amount goes into the savings first before you put the remainder into your checking account; this is referred to as payroll distribution. Before you pay your bills, pay yourself first! If you find that you can live off what is deposited only into your checking account, increase the payroll distribution by $5 or $10 increments.
2. Open a separate savings account so that you don’t have direct access through your debit card and/or checking account. The less access you have to the account, the better!
3. Did you get a raise recently? Were you able to live on what you made before that raise? Take the additional money that you are now receiving every pay period and add that to your savings account. I bet you won’t even miss it!
4. Save your tax refund versus spending it and have it deposited right into your separate savings account.
5. Find a higher yielding savings account. The Kasasa Saver with Sunmark will allow you to earn higher interest than you would in a normal savings account. *
*Savings disclosure. Kasasa Saver disclosure