How to Fund an Emergency Savings Plan
Having trouble making ends meet when last minute emergencies crop up? What you need is an emergency savings fund. The reward: respond to emergencies without going broke, using credit cards or high interest payday loans to make it from paycheck to paycheck. Here's how to fund your emergency savings plan.
- Difficulty:
- Moderate
Instructions
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Keep a spending journal for 2 weeks. Be sure to write every purchase down. Make an envelope for each bill and each type of expense, including "blow money," which is money that you spend for little things like the morning paper, a cup of coffee, soda from the machine and any other small purchase.
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2
Take a look at the little things you buy and decide which 3 to continue buying. Use only the money in your "blow money" envelope for these purchases. Each time you are about to buy something small, ask yourself whether you really need it. If not, don't buy it. At the end of the week, put the money you did not spend into your emergency fund.
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3
Develop a second income stream or even several additional income streams. There are several reputable online email reading programs which give you 5 cents for each email message read, plus bonuses for referrals, plus a percentage of any purchase made through their web page at a large selection of businesses. SendEarnings, InboxDollars, SnapDollars, Bond Rewards, and My Points all pay you to read messages, take surveys and play online games. Use you rewards to fund your emergency savings plan. I have had 3 payouts so far from inbox Dollars and 1 from Bond Rewards just from reading messages.Do not buy anything you would not ordinarily buy and do not use credit to buy anything that is not durable.
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Sort through your belongings for things you have not used in the past 6 months. Hold a garage sale or yard sale, or list items on eBay. Use the proceeds of your sales to fund your plan.
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If you receive any monetary gifts, bonuses or other "found money," add it to your emergency fund. Save change from purchases and add that as well.If you live in an area where you can recycle for money, do so. It takes 26 aluminum cans per pound, and aluminum has gone up in price. Copper has also risen. Be sure to get permission before removing any copper or aluminum from anywhere.
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