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Why You Need an Emergency Fund

Do you have an emergency fund? NO? Well never fear, because you’re in good company with lots of other Americans. Studies show that 39% of Americans don’t have enough in an emergency fund to cover a $1000 emergency.

Really? Yep.

$1000 isn’t very much. It’s less than most car repairs this day. Less than what it might cost if your dog got bit by a rattlesnake. And less than a medical emergency.

So why do we need one? Well if that last statement didn’t convince you of it, I don’t know what will. Most of us are living paycheck to paycheck, 1 emergency away from financial disaster.

How much do we need to save? Statistically, we should probably have 3-6 months worth of living expenses. Seem like a lot? Well, it’s not in the grand scheme of things, when you without a job, or living in a crisis.

We’d all like to think that friends and family could help us out in times of need. And truthfully, most would like too and would try. But how many of them just wouldn’t be able to help because they too are living paycheck to paycheck?

Emergency funds are for just that, emergencies. They shouldn’t be used for emergency shopping, or emergency vacationing, or even emergency car repairs.

They are funds that are virtually untouchable unless cases of disaster. We should all have a bank account, savings account, emergency account, and retirement account. It seems like a lot of accounts, right?

Hear me out though. If we delegate and separate our money into their respective accounts, and only use those accounts for what they’re intended for, we can save.

It all starts with a budget. And then planning and delegation. If we’re saving 10% of our check for after expenses for our savings account, then the rest should go to our emergency fund. There is a hierarchy of savings, which some will agree and some will disagree with.

If you have debt, my suggestion is that make sure that you’ve at least 2 months of savings for emergencies put away before you attack your debt. I don’t mean don’t pay the debt, but attacking and making large payments to try to pay it down. I believe it’s more important to have something in savings, even if it’s small before you attack the debt.

Some may disagree and say you should pay your debt down first before you invest in an emergency fund, but that just doesn’t sit well with me. I believe you should always have a little in savings/emergency funds before you worry about paying off the debt.

An even faster approach to getting that emergency fund up and running is to get a part-time job, or side hustle.

What we’re trying to avoid is that when emergency or tragedy strikes, we’re prepared to deal with it. Without reaching for those dreaded high-interest credit cards.

Planning now prevents major stress and headache in the long run. It only makes sense to take some easy and necessary steps to prevent panic when something goes run. Check out How to Start an Emergency Fund to learn some easy, simple steps to start that emergency fund today!

8 Ways to Make an Extra $1000 a Month

Who wouldn’t want an extra $1000 per month? I know I do! Think of the things you could do with an extra $1000/month, or $12,000 a year?

Pay off school loans, pay off credit cards, put it away in savings, buy a new car, take a vacation, put it into an emergency fund, start a business.

saving money, money, debt — 8 Ways to Make an Extra $1000 a Month

The possibilities are endless. $12,000/year by any standards would be a great raise in most jobs. And chances are it could make a large change in your life. Go ahead and give it a try, what do you have to lose?

Start a blog– This should seem like an obvious choice since you’re reading a blog! I started this blog, for just this purpose. To learn, to educate, and hopefully to make some money at it. I love it, I love technology, and I love learning and teaching new things. It’s a great side job, lots of work, but well worth it. And to think, you can make a blog about ANYTHING! Just give it shot, you’d be surprised how fun it is!
Answer Survey– Survey answering is one of those things that I never really knew existed. But it’s out there and there’s plenty of money to be made. Try sites like Typeform, SurveyJunkie, and Swagbucks.
Drive Uber/Lyft- This is a great option if you’ve got a decent car, like to drive, and aren’t afraid to meet new people. The sign up is easy and painless, and you can start earning money quickly!
Sell Your Stuff– The first thing I like to do when looking for extra cash, is to start looking around the house! There’s always stuff laying around that can be sold for extra money. Whether it’s electronics, furniture, clothes, handbags, trading cards, or even antiques. Look around that house, there’s bound to be stuff you’re not using. For more ideas on selling your stuff, check out Top 20 Things to Sell to Make Extra Cash.
Babysit– So a time tested tradition holds up. Babysitting is a time tested classic that started when you were 14, and can still make you money way into your 20’s, 30’s, sky’s the limit. Good babysitting help can be hard to find, and if you’ve got the time and some friends, chances are they need a break and a babysitter!
Become a Bookkeeper– This might be a strange one for some, but chances are you have some bookkeeping skills. And why not put those to use?
Become a VA– This is a great job for almost anyone. Almost everyone is looking for some kind of help, mostly online. If you’ve got secretarial, sales, computer, or even writing skills, you can find work. Heck, many people are VA full time and making a great living. Look to sites like Upwork, TaskEveryDay, and even Fiverr as a great way to make some extra dough.
Freelance Work– Freelance work is great because you’re already doing it! I always preface this with, if you’re working in a field and are employed, you should make sure that you will not get into any problem, freelancing with other people or companies. But the truth is, if you’re skilled, you can usually find very good work doing side jobs and projects within your field.

The truth is, if you’re motivated enough, you can find ways to make extra cash. It might take sacrifice, but in the end, it’s all worth it. Think of all you can do with that extra cash each month? Get outta debt. Save for a rainy day. Take a vacation. Put into retirement savings. The possibilities are endless!!