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Every homeowner needs an emergency fund. Money set aside to address surprise home-related expenses. Whether you’re a new homeowner or have been in your St. Louis home for many years, an emergency fund is something you can’t afford to overlook. It can be challenging, however, to establish and maintain a separate account for emergencies with all the other expenses we have, but the safety net it provides is well worth having a few strategies in place. Here are a few ideas that may help:
Understand Why It’s So Important
It can feel like a chore setting money aside for an emergency fund. The end goal isn’t as satisfying as a vacation or a big purchase that we can look forward to. If you want to be successful in building this account, it’s important to have the right mindset. When you understand just how important an emergency fund can be, and how much stress it can save you from experiencing later, you’ll be more motivated to work on growing it.
It’s also important to have some goals to work toward. Otherwise, building your emergency fund can fall to the bottom of your priority list. I’d recommend setting some milestones along with the dates you plan to achieve them. This holds you accountable — even if it’s just $50 each month, it will add up over time.
Automate Wherever Possible
I mentioned above that your emergency fund can quickly move to the bottom of your priority list. Because we won’t have a use fir the funds right away, it’s not very exciting to keep funneling money into it. This is why automating the process can be so valuable. Have the minimum amount you want to contribute each month automatically deposited into your emergency fund. If you have extra more to add at the end of the month, then great. But if not, at least you’ll still be meeting your goals.
Consider a Secondary Income
If you’ve outlined your goals and can’t see a way to get there, it might be worth considering a secondary income. Even if it’s only bringing in a small amount of money, directing it straight to your emergency fund can help you build that account while freeing up money from your primary income for your day-to-day. There are many ways to find additional income streams that are completely remote and done on your time. It may also give you an opportunity to spend some time doing something you love — and getting paid for it.
If you’d like to talk more about these ideas, or if there’s something else we can be of assistance with, please reach out to us. We’re always happy to help.