Sentry Page Protection
Painless Ways to Build an Emergency Fund
Emergencies aren't something we wish for, but they happen to everyone at some point in time. The severity of the emergency can vary, but if you are prepared, and have a cash emergency fund, then while it may be upsetting, it won't be financially draining or stressful. When you're faced with a crisis, the last thing you need to be worrying about is money.
So, while some may see working on building an emergency fund as negative thinking, I believe it's better to be prepared and not need to use it, than need it and not have it. Then you'll really find out what negative thinking is!
When we sit down and let our imaginations go to work, it is astounding just how many little ways we can find to stash money away for emergencies.
But let's think about this in a different way. Once you've built your emergency fund, you are in the habit of saving. So keep on saving, but not for emergencies. It could be for a house deposit. It could be for renovations. It could be to pay cash for a new car or a family holiday. Or lots of other things that may happen in the future.
By paying attention to the little things you can do to save, your financial future isn't at all scary.
Painless Ways to Find Money for an Emergency
If your plan for money for your next emergency is to scoop up the change that falls between the cushions and drag out the credit card, think about expanding that plan to add to The CASH Stash. It is always a good idea to have a little extra cash for the lean times. Rainy days could be just around the corner so emergency funds become necessary! Here are some very clever and virtually painless ways to put aside some money now!
Put aside a large envelope, Milo or formula tin, coffee jar or something similar. At the end of every week, throw a couple of dollars into the 'jar'. By the end of your first month you should have some extra cash put aside to have a nice start on an emergency fund. Treat yourself to a little mystery: don't count it or spend it. Place it somewhere that is hidden away; somewhere that you won't be tempted to dip into it. This kind of money really adds up! Only count it every six months; how much you've saved will take your breath away!
The next time you treat yourself or your family to a meal out, tip yourself! Tipping isn't common practice in Australia, but get into the habit of tipping yourself 15 to 20 percent of the bill total. When you get home, stash it away in your Milo tin. Every time you go through a fast food window, put a dollar away for that Milo tin too.
The next time you get a good raise, instead of applying it to your cost of living, bank it! This way you will always be living one raise behind and your bank account will be growing automatically each pay day. I know that costs are continually climbing, but even banking 50% of your raise will add up for the future of your money.
Take advantage of that cash back option! Next time you make a purchase using your debit card, round up to the nearest dollar and ask for the cash back. Instead of spending it, stash it away in your Milo tin. Chances are you won't even miss that extra few cents and come emergency time, you will notice how the amount has piled up. Rounding off the purchase amount or at least a dollar is an acceptable measure. If you use cash, save the change you get instead of spending it.
Next time you pay off that big-ticket item like a new car or credit card debt, continue to make the payments to yourself. Set up a savings account and each month slip the ghost payment into it. Watch as it builds nicely. You won't miss the payment, you're in the habit of living without it, so just keep doing that.
If you have noticed that you can get a better internet or phone plan and you want to switch, allocate the savings to your Milo tin. You won't miss that little bit of extra money, and you will have a better phone plan, too. Call your phone company every few months to check on the plan options. They don't always tell you when they change rates and plan benefits.
Make sure you are getting all the benefits of memberships. For example, auto club (RACV, RACQ etc.) all have discounts attached. Research them, and then make use of them. I can buy Woolworths gift vouchers and save 5% - I pay $95 for a $100 gift card. Put the $5 into the Milo tin.
Did you enjoy your tax refund last year? Sure you did, we all did. Many people will have a little extra money coming their way after June 30. Decide to deposit that extra money right away into your savings account or cash it and then stash it. Sure you can come up with plenty of ways you can use that money now, but put it away for later when you may really need it. While it is also acceptable and maybe wise to have lower deductions taken from your pay, make sure you cover your tax bill.
If you are a responsible spender, take out a credit card that rewards your loyalty. When you pay off the bill every month, use a card that promises a cash reward and bank the money. Use your reward credit card smartly and you could end up with a very nice windfall for your rainy day fund. Even a card that gives you shopping points can mean that you have a stash put away for clothing or gifts. But only if you are a responsible spender and pay the balance in full before the due date each month.
Put aside a large mouthed jar in the kitchen. It is very likely that your parents and grandparents had one. At the end of each workday simply empty your pockets or clean out your change purse. All the change goes into the jar. Who wants to carry around all that dead weight, anyway? Your spare change adds up a lot faster than you think. While you are at it, add at least one bill to your change jar at the end of each week. Aim for a $20!
Is it time to give up that nasty smoking habit? Imagine the money you will save! If you are not quite ready to quit at least cut back by half. Put the savings each day into your change jar and watch it overflow! The average smoker spends $17,000 a year on cigarettes - and yes, that's $17,000!
Convert to a coin-operated laundry. Keep a jar on your washer and every time you go to do a load of laundry, slip in a coin or two. This adds up month by month.
If you yearn to lose some weight, try rewarding yourself the cost of the item that you do without each day. Put that money into your change jar. You will look great and you will be saving for a rainy day!
Pay for your phone calls. At the end of each day, check the logs on your phone, count how many calls you made or texts you sent, and then pay for them. Fifty cents per call or text will soon add up - just drop the money into a money box or tin. When the tin is full, add it to your emergency fund.
Emergencies always crop up. They are always guaranteed, unlike the money to deal with them. So plan now to be prepared!
I challenge you to think of even more little ways you can stash cash.
So, while some may see working on building an emergency fund as negative thinking, I believe it's better to be prepared and not need to use it, than need it and not have it. Then you'll really find out what negative thinking is!
When we sit down and let our imaginations go to work, it is astounding just how many little ways we can find to stash money away for emergencies.
But let's think about this in a different way. Once you've built your emergency fund, you are in the habit of saving. So keep on saving, but not for emergencies. It could be for a house deposit. It could be for renovations. It could be to pay cash for a new car or a family holiday. Or lots of other things that may happen in the future.
By paying attention to the little things you can do to save, your financial future isn't at all scary.
Painless Ways to Find Money for an Emergency
If your plan for money for your next emergency is to scoop up the change that falls between the cushions and drag out the credit card, think about expanding that plan to add to The CASH Stash. It is always a good idea to have a little extra cash for the lean times. Rainy days could be just around the corner so emergency funds become necessary! Here are some very clever and virtually painless ways to put aside some money now!
Put aside a large envelope, Milo or formula tin, coffee jar or something similar. At the end of every week, throw a couple of dollars into the 'jar'. By the end of your first month you should have some extra cash put aside to have a nice start on an emergency fund. Treat yourself to a little mystery: don't count it or spend it. Place it somewhere that is hidden away; somewhere that you won't be tempted to dip into it. This kind of money really adds up! Only count it every six months; how much you've saved will take your breath away!
The next time you treat yourself or your family to a meal out, tip yourself! Tipping isn't common practice in Australia, but get into the habit of tipping yourself 15 to 20 percent of the bill total. When you get home, stash it away in your Milo tin. Every time you go through a fast food window, put a dollar away for that Milo tin too.
The next time you get a good raise, instead of applying it to your cost of living, bank it! This way you will always be living one raise behind and your bank account will be growing automatically each pay day. I know that costs are continually climbing, but even banking 50% of your raise will add up for the future of your money.
Take advantage of that cash back option! Next time you make a purchase using your debit card, round up to the nearest dollar and ask for the cash back. Instead of spending it, stash it away in your Milo tin. Chances are you won't even miss that extra few cents and come emergency time, you will notice how the amount has piled up. Rounding off the purchase amount or at least a dollar is an acceptable measure. If you use cash, save the change you get instead of spending it.
Next time you pay off that big-ticket item like a new car or credit card debt, continue to make the payments to yourself. Set up a savings account and each month slip the ghost payment into it. Watch as it builds nicely. You won't miss the payment, you're in the habit of living without it, so just keep doing that.
If you have noticed that you can get a better internet or phone plan and you want to switch, allocate the savings to your Milo tin. You won't miss that little bit of extra money, and you will have a better phone plan, too. Call your phone company every few months to check on the plan options. They don't always tell you when they change rates and plan benefits.
Make sure you are getting all the benefits of memberships. For example, auto club (RACV, RACQ etc.) all have discounts attached. Research them, and then make use of them. I can buy Woolworths gift vouchers and save 5% - I pay $95 for a $100 gift card. Put the $5 into the Milo tin.
Did you enjoy your tax refund last year? Sure you did, we all did. Many people will have a little extra money coming their way after June 30. Decide to deposit that extra money right away into your savings account or cash it and then stash it. Sure you can come up with plenty of ways you can use that money now, but put it away for later when you may really need it. While it is also acceptable and maybe wise to have lower deductions taken from your pay, make sure you cover your tax bill.
If you are a responsible spender, take out a credit card that rewards your loyalty. When you pay off the bill every month, use a card that promises a cash reward and bank the money. Use your reward credit card smartly and you could end up with a very nice windfall for your rainy day fund. Even a card that gives you shopping points can mean that you have a stash put away for clothing or gifts. But only if you are a responsible spender and pay the balance in full before the due date each month.
Put aside a large mouthed jar in the kitchen. It is very likely that your parents and grandparents had one. At the end of each workday simply empty your pockets or clean out your change purse. All the change goes into the jar. Who wants to carry around all that dead weight, anyway? Your spare change adds up a lot faster than you think. While you are at it, add at least one bill to your change jar at the end of each week. Aim for a $20!
Is it time to give up that nasty smoking habit? Imagine the money you will save! If you are not quite ready to quit at least cut back by half. Put the savings each day into your change jar and watch it overflow! The average smoker spends $17,000 a year on cigarettes - and yes, that's $17,000!
Convert to a coin-operated laundry. Keep a jar on your washer and every time you go to do a load of laundry, slip in a coin or two. This adds up month by month.
If you yearn to lose some weight, try rewarding yourself the cost of the item that you do without each day. Put that money into your change jar. You will look great and you will be saving for a rainy day!
Pay for your phone calls. At the end of each day, check the logs on your phone, count how many calls you made or texts you sent, and then pay for them. Fifty cents per call or text will soon add up - just drop the money into a money box or tin. When the tin is full, add it to your emergency fund.
Emergencies always crop up. They are always guaranteed, unlike the money to deal with them. So plan now to be prepared!
I challenge you to think of even more little ways you can stash cash.