How To Save Money For An Emergency Fund

Are you worried about keeping your job in this troubled economy? If you are one, you're not alone. Millions of Americans are in the same situation. But the question is, do you have cash on hand to get you through if you do? If not, it's time to save money for an emergency cash fund.

Now I know from personal experience that losing a job is just devastating. It's natural to be angry, sad and downright depressed from the situation. If you let it, it will eat you alive. But believe it or not, the worse case scenario can be the best thing that ever happens to you, if you don't let it get the worse of you.

Humans have a tendencies to get complacent and fear change - but change can be the best thing that ever happens to you. Losing a job forces you to look at alternative careers and can even be the catalyst that moves in the direction you which to take.

Building an emergency cash fund that will pay expenses for at least two months is a very smart move. This will give you a cushion to explore new employment options without having to take any job available just to make ends meet - and start a vicious cycle that can be hard to get out.

If you are eligible for unemployment insurance, the emergency fund will help cover the expenses until you receive the compensation; then it will supplement the unemployment checks. If you're one of the lucky ones to receive a severance package, having that emergency cash fund can give you some added comfort.

How can you save money for an emergency fund? Even if you're on a tight budget or just making ends meet, there are some simple ways to save cash without diverting any of your current cash flow. By reducing your home energy costs you can save money that can be used to build an emergency cash fund.

The amount of money you can save by being energy efficient adds up quick. Energy saving tips such as weatherproofing, keeping doors closed and eliminating doing half loads of laundry are how to save money for an emergency fund.

If you want to prepared for anything life can throw at you it makes sense to explore the dozens of ways you can save money for an emergency fund.

Comments 1 comment

Aussieteacher profile image

Aussieteacher 6 years ago from Brisbane, Queensland, Australia.

I read a book called "The Richest Man in Babylon" I think it was written in 1937, and the message was to save 10% of everything you earned, invest it wisely, and lave it alone until you really needed it (preferably in your senior years!!!)

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