I know, I know…saving seems impossible at times right? Where are you going to find extra money to save, when you already seem to be spending more than you make? Well, I’m here to tell you that saving money for your emergency fund is not only possible, but you can do it quickly! I used to have the hardest time-saving money.
The truth is, I would talk myself outside of it mentally before I could even take any real action. If you also have this issue, I need you to really believe that you can do this! Saving is largely a mental game.
Honestly, it wasn’t until I got fed up with not having enough money when an emergency came up that I finally decided that I had no other choice but to build an emergency fund. I was tired of any time I had an unexpected car repair, I would have to struggle until my next paycheck. You may have also have heard the phrase “nest egg” before, either way, the idea is to have some savings should you have an unexpected expense.
Life tells us to expect the unexpected, so you always want to be prepared! There’s also a very special sense of peace that comes with having extra money saved up. You can rest easy knowing that you won’t be set back when something comes your way. Trust me, it is a great feeling and I want you to experience it too!
So let’s get started!
First things first – Take a look at your budget
Before we can even talk about saving money, we need to know how much money we are working with. You need to know how much money you are spending, and what you are spending it on. Get out some paper and review your receipts and bank statements. Chances are, you are spending money on a few things that you really don’t need.
Look for expenses that you can eliminate and use for savings. I’m not saying you should deprive yourself here, but while you are building your emergency fund you will need to change a few habits. Once you finish building your fund, you can always go back to doing those things! Trust me, seeing your savings account grow will be far more rewarding!
Once you finish reviewing your budget, you should have a good idea of how much income you have left over after your expenses. A good percentage of your leftover income should be dedicated to savings. I started out by transferring $75 – $100 from each paycheck to my savings account.
I recommend automating your savings. You can set this up with your bank. Tip – Don’t be discouraged if this number is small. Every little bit helps here!
Potential Savings – $200+
Get a side hustle
The fastest way to save money is to increase your income! With the power of the internet and social media, it is easier than it has ever been to start a side business. You can start a side-hustle with little to no cost to you.
A few ideas you can use to make money fast are driving for Uber or Lyft, freelance on Fiverr, or completing surveys on SwagBucks. All of these options will allow you to make money fast and are virtually free to sign up. Also, check out this list of great ways to make money online from home at DollarSprout.com for more ideas.
Potential Savings – $200+ depending on how much time you are willing to invest.
Sell your old stuff
Go through your storage and closets and gather up all of your old items. I’m sure you’ll find a few things that you haven’t even looked at in a few months. Instead of allowing these items to take up extra space, get rid of them.
Potential Savings – Between $200 – $500
Eating out is likely eating up your budget! Whether it’s fast food or dining out to a nice restaurant – food expenses can add up fast! Try meal prepping, and eating leftovers for lunch. A few meal ideas that are easy to stretch include spaghetti (or virtually any pasta dish), chicken stir-fry, chili, and meal-sized salads.
The idea is just to make a little extra of whatever you are cooking, and use the leftovers for lunch! I save at least $200 a month using this method!
Potential Savings – $200
Create a money penalty jar
The idea here is to put all of the money that you would normally spend on luxuries in the jar. Think about those Starbucks drinks, pedicures/manicures, bottles of wine…you get the idea. These are all things that you can temporarily live without.
Anytime you think to normally go and splurge on these items, add the money to your money jar instead. To save even more, also add any loose change or any lose cash that is less than a $20 bill. The dollars will add up!
Potential Savings – $100
The key to being successful here is to really take action! If you really want to save, you will have to be proactive and believe that you really can do this! I truly believe that if you start using a combination of these money saving tips, you will build an emergency fund fast! There is so much peace in knowing that you will be prepared the next time an unexpected expense comes your way.
Take action today! Let me know what your favorite money saving tips are in the comments below.