A heavy emergency fund could stand between you and financial disaster if something goes wrong. With the COVID-19 pandemic and the uncertainty it has brought over the past year, the importance of having emergency savings has become clearer than ever.
If you are not happy with the size of your fund for rainy days, you may want to quickly increase the amount you have set aside.
While it can be difficult to save a lot of money on a tight schedule, there are a few options you have for increasing your emergency volume. savings account thus you will be protected against the unexpected catastrophes of life. Here are three of those options.
1. Take a secondary job
Bringing in extra income can be a quick way to save an emergency fund.
There’s no real limit to how much extra work you can do and how much you can earn (except, of course, that there are only a certain number of hours in a day). And if you can live with your current budget and don’t need your money to pay your bills, you can put all of your extra income into your emergency savings.
Many employers are very keen on hiring right now – and remote jobs and working from home have become more and more common. It may be possible to find a side concert that you can do from the comfort of your home, or one with flexible hours that you can easily fit into your schedule.
If you go for a side job, you will be shocked at how quickly the money you earn can increase your emergency account if you deposit the entire amount in your savings.
2. Use credit card rewards and signup bonuses
Many cash back credit cards offer the chance to win money as a reward. This could take the form of a credit on a statement or a direct deposit to a bank account of your choice.
There are also many credit cards that give you a cash bonus – for example $ 250 or $ 500 – if you become a new cardholder and meet certain minimum spending requirements within a short period of time (often three months).
If you can earn a signup bonus and rewards for your daily expenses, you can deposit that money directly into your emergency account. Some card issuers allow you to get a check for your cash back or deposit the money directly into your account. But even if you get your bonus as a credit on your statement, you can still save the money you would otherwise have had to send to your creditors and use it to increase your savings.
3. Sell things you don’t need
Finally, if you have any unwanted items in your home, consider selling them and depositing the money directly into your savings.
If you look around you might be surprised at how much you can find for sale because you are no longer using some of your items. Instead of cluttering up your home, you can turn those unused assets into an emergency fund that offers more financial security.
Using one or all of these approaches could leave you with a big emergency fund in no time, so start trying them today.
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