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Whether you’re a new homeowner or have been in your Chicago home for years, an emergency fund is something you shouldn’t overlook. Do you know the status of yours? It can be challenging to create an additional savings account, but the safety net can prove to be incredibly valuable. If you’re ready to invest a bit more in your emergency fund, here are a few tips to get started:
Get Clear on Why It’s Important
It can feel like a chore saving up an emergency fund. Unlike saving up for a vacation or big purchase, it can feel like there’s no satisfying end goal. If you want to be successful in growing this account, it’s important to get your mindset right. When you get clear on just how important this account is, it can feel a lot more motivating to work on growing it.
Set Some Clear Goals
It’s also important to set goals to work towards. Otherwise, this account can quickly drop to the bottom of the priority list. I’d recommend setting financial milestones along with the dates you plan to achieve them. This way, you’ll know what is realistic for yourself, and you’ll also be able to create a concrete plan to keep yourself accountable. Even if it's only putting $50 a month away right now, that will add up over time.
Automate the Process
As I mentioned above, the emergency fund can quickly move to the bottom of our priority list. It’s not the most exciting savings account, and because we don’t need the funds now, it might not be top of mind. 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 more to throw in at the end of the month, great. If not, at least you’ll still be on track towards your goals.
Start a Side Hustle
If you’ve outlined your goals and can’t see a way to get there, it might be worth considering a side hustle. Even if you’re only bringing in a small amount of money from this, directing it straight to your emergency fund can help you grow that account quickly. As I said, you don’t have to contribute $500 a month if that’s not feasible. Find the amount that’s right for you and if a side hustle would help you get there, there are so many avenues to find additional income streams that are completely remote and done on your time.
If you’d like to talk more about saving for an emergency fund, or if there’s something else we can be of assistance with, please reach out to us. We’re always happy to help.