How many times have you heard about the need for an emergency fund? It’s been mentioned several times on this blog, and you’ve probably heard a snippet of the same advice from every financial guru you have ever seen on television. It’s a fact that a savings account is a necessity for a rainy day — but how can you start one if you are living paycheck-to-paycheck?
When there is not enough money to go around, having a savings account is even more important. When you find yourself in a financial bind, sometimes you just can’t wait until that next paycheck — and then you find yourself dealing with a loan shark that charges impossible interest, or relying on the kindness of family and friends.
So start saving now, even if you think you can’t. Here are a few ways to put pennies into the bank until it adds up to a nice nest egg:
Compare before you decide. Are your kids dying to see that new movie? Compromise with a movie rental, and make your own popcorn at home. The cost of going to see a movie in a theater can run 40 or 50 dollars. The cost of a rental can be as little at 1.99, and the popcorn cost is about the same. You can save 30 bucks just by comparing your prices and making the wise choice. Then take that 30 dollars and put it in the bank!
Make your own. Do you normally go out to eat once a week? Put that money in a savings account instead and make a special meal at home. You can also purchase items at the store in bulk, and save more money in the long run. Choose to cook your meals at home from scratch and avoid convenience foods in order to save even more cash.
Ask for monetary gifts. When your birthday or Christmas rolls around, ask your friends and family to deposit money into your savings account instead of giving you a gift. Even if it’s five dollars, it eventually adds up, and they will be contributing to your peace of mind. As any single mom knows, that is a gift well spent!
Barter instead of buy. Join groups like Freecycle.org to give away or barter the things you no longer need. You can find furniture, books, kitchen necessities, and more if you take the time to look, and the money saved can go into the bank.
Count your change. Fifty cents here and there might not seem like much, but it does add up. Put your spare change into a jar and hide it away in the closet. When the jar is full, take it to the bank and let them count it for you. Then put the money into your account, and start keeping the jar all over again. You can accumulate a surprising amount of money this way.
Don’t give up! If it seems like you can’t put any money into the savings account, try to think of creative ways to make it work. You will soon have that emergency fund you need, and you will rest much easier at night, knowing that if something happens and you need the money, it’s right there waiting for you.
