Creative Ways to Boost Your Emergency Savings
I’ve heard of many financially-focused New Year’s resolutions, but adding to an emergency fund is one of my favorites. No matter your goals for 2025, it’s smart to have a financial cushion, especially if life throws you sometHing unexpected.
Step 1: Create Your Goal
It is recommended that a family have a solid three- to six-month financial safety net in case of an unexpected event such as job loss, medical emergency, or costly home repair. That means you should have enough money, readily available in your savings account, to cover 3-6 months of household expenses.
Do some quick math and see what that entails. Do you have a number in mind?
Step 2: Auto-Transfer Funds
The simplest way to build up that account is to send part of your paycheck right to savings. Many employers allow direct deposits into multiple accounts, so see if you can put aside $50-$100 per paycheck. You can also set up auto-transfers with your bank, from one fund to another.
If that number seems too high, start small! Even $10-$25 a month adds up.
Step 3: Explore Creative Ways to Boost Your Savings
There are some unique ways to help your emergency fund grow faster, even when you think you’ve stretched your pennies to the max. Let’s check out a few!
Make it a game
If budgets and finances are not your idea of a good time, it’s OK. I understand. But that doesn’t mean you can’t make money issues more fun. Try a Money Saving Challenge, such as the 100 envelopes challenge. All you need is 100 envelopes, labeled 1-100. Each day for 100 days, you put dollars in one of the envelopes to correspond with the number. For example, let’s say you randomly draw envelope #40. You would then put $40 cash into that envelope. After 100 days, you have $5,050 to put into your savings account.
You could also challenge another member of the house to a competition. See how much you can save in a week, a month, or longer. You can even attempt a “No Spend Week” and see if you can make it through an entire week without spending a dim by cooking at home, eating foods already in your pantry or freezer, and getting by without any of life’s “extras” for just a few days. Whatever you don’t spend, you can put into savings.
2. There’s an app for that.
There are plenty of apps on the market to help you set aside funds. From automatically deducting a portion of your paycheck, to rounding up on each spend, you can use the help of technology to get your savings rolling.
Try an app like Acorn to save money without really noticing it. The app can help round-off any expense to the nearest dollar, “squirreling” away those extra pennies for a rainy day.
3. Put away windfalls
Every once and a while, life hands us an expected windfall. Maybe a loving grandparent slipped you $50 at Thanksgiving, or you won a gift card at work, or you found a $10 bill on the sidewalk. Instead of spending that extra money, put it aside. Even small “wins” like these, which aren’t part of your expected budget, can go a long way toward building up your emergency fund.
4. Reduce bills and hoard the difference.
Most people feel that they’ve really stretched the budget as far as possible, but when was the last time you really looked at your set, monthly bills? You may not be able to escape the electric bill, but are you getting the best rate per kilowatt hour? Many utilities allow you to select your provider, and shopping around may allow you to save a bit of money.
When was the last time you had an insurance rate quoted? While prices can be on the rise in much of the insurance industry, finding the same or better coverage for a lower rate may be an option if you look around or bundle your policies with one agency. Independent insurance agents can often find great rates since they can get quotes from multiple carriers.
Once you spot the savings, take the same budgeted funds and put the difference into an emergency fund.
5. Work a side hustle
Adding more work on top of your full-time job might not be ideal, but many side hustles are not very time-consuming and can even be fun.
For example, if you’re a teacher, you could offer tutoring services for just a couple of hours every week. Teachers Pay Teachers is a great website where you can sell your learning resources to other educators.
Donating plasma can also be a lucrative side hustle if your health allows it. I also know people who rent out rooms on AirBnb, have a direct sales side hustle, and even offer petsitting on the weekends. Any of these side jobs that fit your personality and could help you earn extra money to put aside.
Step 4: Get Professional Advice
If you’ve looked high and low, near and far, and still can’t seem to find any way to make the dollars stretch in your house, there is one more way you can get creative with your emergency fund. Seek a helping hand!
Sometimes, having fresh eyes on a topic can make all the difference in the world. You’ve been staring at your budget for months, or maybe even years. Perhaps having someone else looking at things could help.
Reach out today and set up an appointment. Financial advisors are not just for retirement or college savings plans. We can also help you accomplish small goals, like building up an emergency fund. We can work together and find creative ways that are unique to your personal circumstances and can help you create the safety net you deserve.
