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An emergency is defined as something last minute that can happen at any time. It’s not something you expect to happen and it’s not something you want to happen, but you still must be prepared for it. Saving up cash for an emergency fund is important and it’s not always easy. The boiler could break, the car could break, you could lose your job – each of these instances are not something you want to have to deal with, but life happens! When life happens, the unexpected happens, too.
An emergency fund should only be used the way it’s intended: as an emergency. You should avoid dipping into it where you can and it should be used as a safety net for when you hit a troubled time. It isn’t always easy to squeeze money out of your monthly wages to funnel into a savings account, but it should be one of your top priorities so that you can ensure that you always have something to fall back on. There are ways to borrow money in the short term, but if you need help with your credit with companies like creditrepair.co you won’t be able to access a loan as fast as you may need it. So, what steps do you need to take for a solid savings amount?
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Small bites are essential with savings goals. It’s always recommended to have between three and six months of savings to cover you if you need it. Your goals can seem unattainable at that rate, so make it a week by week thing. Work out what you need weekly and save that first, then aim for another week.
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Having more than one savings account is a smart choice. One should be for you to dip into as you need it, and the other should be the untouchable account that is only to be used if the sky is falling down and you have no choice.
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Making payments from your main account into your savings account should be automated so that you never have to see the money. If you don’t see it leaving your account, you’re far less likely to miss it!
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Whenever you skip a meal out or a cinema trip, funnel the extra money into your savings instead of spending it. This way, you can add to what you’ve saved in an emergency without even trying. You could even try bank account skimming to make it easier on yourself to save; you’d be surprised at how much you can add!
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Cutting down expenses by being savvy about your utility and grocery bills can make you a far smarter consumer. You could even try coupons! You need to be able to hunt around on comparison websites and make good choices so you can cut out what you spend every month.
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Always come back to the drawing board. Every week, look at your income and your budget and see how things change for you so that you can adjust things accordingly. Your budget can always be adjusted to save you some cash!
