Financial experts recommend that you have an emergency fund.
It will help greatly during unexpected times when you find you need access to money with little notice.
There is definitely an assurance that comes with a sufficient emergency fund whether you are dealing with an automobile repair or navigating the uncertain gap between job loss and securing the next job.
Why you need an emergency fund
The best way to get out of debt for good is debt avoidance. However, life may present some emergency situations that could lead you into debt.
It’s the blow that you don’t see coming that could knock you off your feet financially. To make sure that the landing is soft, you need a financial cushion.
This can provide you with a way out to get back on your feet without getting into greater debt.
To enjoy the tranquillity that comes with having a financial cushion stashed away, follow these time-tested steps:
Track your monthly expenses and build your budget around necessities
Start keeping records of your monthly expenses and record every cent you spend. This will not only help you to evaluate what would be your necessities.
It also helps in deciding what to trim from your expenses and create a budget that you can live with.Remember every cent matters and the goal here is making the most out of every cent.
Create a list when you shop for groceries to avoid impulse buying and stick to the necessities. This might sound funny but you should avoid shopping when hungry because it’s easy to buy unnecessary items making it more difficult to stick to your budget.
Sell off personal items that you rarely use
Chances are that you’re holding onto items that you barely use. If you have items in the house that you haven’t used for a couple of years, then you probably don’t need them and could easily convert them to cash for possible emergencies.
Do you have items that you dislike in the house? Don’t let them clutter your living space, sell them off you could increase your savings.
If you live near a market you could drop in occasionally to check out the price of certain items, as you could find items that may fetch a better prices on online stores such as eBay.
Generate extra cash
You trimmed the expensive cable TV and now you have lots of free time. Find something that you could be doing that will help you achieve your financial goals. For example check out and look for opportunities on platforms like Fiverr or Upwork.
Better still; you can turn your hobbies into a revenue stream.
If you’re good at playing a musical instrument you could offer training and guidance for some extra money, this way if you borrow money from companies like realisticloans.com you will find you have that bit extra money to pay the loan back, and it can also go a long way in boosting an emergency fund for the future.
If you are not a fan of online jobs then you could take an extra job. The point is to create an extra income stream that will be dedicated towards the emergency fund.
Start negotiating for better deals
Most service providers are open to negotiations and they will readily listen to you. It’s time to renegotiate your recurrent expenses and ask for better rates.
Shop around: from home insurance to credit card rates there are better deals if you look closely.
Watch out for a bloated budget
If you are hoping to see any significant progress towards your goal, be ready to make some lifestyle adjustments.
Make a keen interrogation on your expenditure and don’t hesitate to cross out duplicate expenses like cable TV and internet.
If you only watch specific shows; you will do just fine with the internet and drop an expensive cable subscription. With services like Netflix, and YouTube it’s easy to find great series and films on a budget.
Downgrade to a cheaper cell phone subscriptions and free up hundreds of pounds in monthly and yearly expenses.
You could commit to taking the bus to work at least once a week and save up the money you could have used on gas and maintenance when owning a car.
If you live in the environs of your place of work you could ride your bike to work and get in shape at the same time as growing your emergency fund.
Change is a good thing when embraced. Making adjustments to your lifestyle may seem hard at first, but no one wants to get caught off-guard by sudden and unexpected events in life.
Start off and make a continuous commitment towards achieving your goal of putting money by. It’s better to work on building your emergency fund now and not be caught short in the future.
Even the tiniest decision like resisting the temptation of regularly dining out, or buying a coffee can all add up and helps keep you motivated.