We never know about the future or even what might happen tomorrow. Since the future is unknowable and problems are inevitable, one should always be prepared for the bad times. It is necessary to be financially equipped when any problem arises out of the blue. One should not delay their preparations for the next year, next month or even a next day. One should save enough money in their bank account or at home as emergency money. This will help a person to be tension free during bad times and take decisions wisely and economically. Here are some tips which will guide you to start your emergency savings for 2019.
Make a proper and practical budget
It is always good to make a proper budget before starting any task. Even before starting to save some of your income as emergency savings, you should make a practical budget which will help you further. You need to properly list all the monthly expenses and the income you bring home. You should also keep aside some amount of your income for payments you do annually. For example, if you earn $5,000 per month and spend $4,200 a month, you can keep aside $800 aside into your bank account as emergency fund collected for the bad times.
Lower down the expenditure
In order to save emergency money, you should cut off your extravagant expenses. Since you need to have money for the unexpected turn of events, it is better to start as soon as possible and not delay it to any other day. You should avoid wasting money on things which you do not necessarily need. You should avoid using your personal transport and walk to nearby places, you should purchase groceries from wholesale market at reasonable prices, you can even cook food at home and save money by not ordering from outside. You should spend wisely in order to save more.
Be multitasking to have emergency savings
If you think that you cannot take out some amount of your earnings from your salary, then you should be multitasking enough to earn more money. If you love shopping, you can shop the groceries for someone else, if you are an avid reader and writer, you can write book reviews or do freelance writing job sitting at home. If you have a creative bent of mind, you can make beautiful gifts and sell it for money. These ways are really helpful to pass your time, do what you love and earn some extra dollars.
Bonuses are meant to be in banks
You should always be true to yourself and your savings because otherwise you will be affected severely. It is always better to be a saver rather than a spendthrift. You should be determined to keep away the entire bonus amount that you get from your job. You should not lose your perseverance and should directly save the extra earnings into your bank account, which can be used during the time of immediate need. Those bonuses and extra earnings will be your emergency fund which you can take out from your bank account whenever you feel the need to.
Be true to your piggy bank
It seems quite difficult when you have money in your hand and you need to control yourself from spending it. You should save bit by bit each month from the extra earnings that you make and put the money in your locked piggy bank at home. This can be a group task where all the members of the family share the burden of saving the money for emergency situations. This will help you in gathering good amount of cash without feeling the burden of it.
We never know about the impending doom that is why we should always be ready with our emergency fund to be tension free during bad situations.