3 Ways you can save for an Emergency Fund with no spare cash
Hey guys,
What would you do if an emergency happened? How would you get by?
Thankfully, when I found myself on a low income, I had a small stash of cash to hand and I focused on the absolute essentials throughout the month but it was still worrying nonetheless. It got me thinking, I don't ever want to go through a situation of panic and worry like this again. I want it to merely be an ‘inconvenience’. So what can I do to avoid this?
Build a sufficient emergency fund.
Now I'm still not in the best position, It will feel almost impossible to have spare cash to save whilst being on a low income.
But honestly, the thing which is keeping me super focused is thinking, what if something goes wrong and there is no spare cash? The last thing I want to do is get a loan, I have worked too hard to clear the debts.
Therefore I have set myself a challenge, to save an emergency fund little and often.
I understand this is going to be almost impossible, something is always going to crop up and money is going to be low but I will give it a try nonetheless. Each Saturday I will be sharing an update on my stories.
Here’s my plan:
But that feels so achievable, especially with the current situation I'm in. That massive figure does not motivate me in the slightest. So, I figured baby steps are the way and broke the goal down into
Every time I find a spare £12, I will color in a square.
This now feels achievable.
Taking all this into account.
What would you do if an emergency happened? How would you get by?
Thankfully, when I found myself on a low income, I had a small stash of cash to hand and I focused on the absolute essentials throughout the month but it was still worrying nonetheless. It got me thinking, I don't ever want to go through a situation of panic and worry like this again. I want it to merely be an ‘inconvenience’. So what can I do to avoid this?
Build a sufficient emergency fund.
Now I'm still not in the best position, It will feel almost impossible to have spare cash to save whilst being on a low income.
But honestly, the thing which is keeping me super focused is thinking, what if something goes wrong and there is no spare cash? The last thing I want to do is get a loan, I have worked too hard to clear the debts.
Therefore I have set myself a challenge, to save an emergency fund little and often.
I understand this is going to be almost impossible, something is always going to crop up and money is going to be low but I will give it a try nonetheless. Each Saturday I will be sharing an update on my stories.
Here’s my plan:
- I realize I need at least £1200 to survive a month
- But then I also realize that realistically it may take several months to get back on my feet
- Putting it all together, I would like to save a £3600 emergency fund
But that feels so achievable, especially with the current situation I'm in. That massive figure does not motivate me in the slightest. So, I figured baby steps are the way and broke the goal down into
- Months
- 1 Step at a time.
Every time I find a spare £12, I will color in a square.
This now feels achievable.
Taking all this into account.
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I thought I would share with you a few ideas to consider when building an Emergency fund if you too are on a low income.
Side Hustle
If you’re on a low income and it is hard to find any spare cash to save. Maybe consider side hustling to bring the extra cash in and put straight towards debt. Last year, I realized I had left it too late to save for Christmas and I really didn't want to rely on credit. Therefore I set myself a side hustle challenge through October and November and conducted lots of side hustles to save money.
Ideas: Sell items, Mystery shop, Create products, Overtime, Surveys.
Rounding up
A lot of banks have rounding up features where you can save the difference from your spending to the nearest pound. Despite not using this feature myself, I have heard a lot of success stories of people not realising how quickly the money builds up which is very rewarding.
Task: Check with your bank to see if they offer a ‘round up’ feature. If not maybe you could consider rounding up your bank balance once a day.
Small Change Saving Challenge
I feel this can help put the fun in saving as it is saving small amounts which build up over time. Last year, I created the save a pound a day challenge and I loved how it bumped my savings from £60 to £90 each month. It gave me the chance to stop at any point and think, actually I cannot afford to save right now which then means I was able to save without dipping into it. There are lots of amazing ideas on Pinterest to get started.
Task: Start saving a pound a day or search pinterest for fun challenges.
That's 3 ideas to consider when saving for an emergency fund. I know it feels impossible but never forget small change can still add up to huge amounts. I have included a free emergency fund tracker to help you on your way!
Good luck!
Side Hustle
If you’re on a low income and it is hard to find any spare cash to save. Maybe consider side hustling to bring the extra cash in and put straight towards debt. Last year, I realized I had left it too late to save for Christmas and I really didn't want to rely on credit. Therefore I set myself a side hustle challenge through October and November and conducted lots of side hustles to save money.
Ideas: Sell items, Mystery shop, Create products, Overtime, Surveys.
Rounding up
A lot of banks have rounding up features where you can save the difference from your spending to the nearest pound. Despite not using this feature myself, I have heard a lot of success stories of people not realising how quickly the money builds up which is very rewarding.
Task: Check with your bank to see if they offer a ‘round up’ feature. If not maybe you could consider rounding up your bank balance once a day.
Small Change Saving Challenge
I feel this can help put the fun in saving as it is saving small amounts which build up over time. Last year, I created the save a pound a day challenge and I loved how it bumped my savings from £60 to £90 each month. It gave me the chance to stop at any point and think, actually I cannot afford to save right now which then means I was able to save without dipping into it. There are lots of amazing ideas on Pinterest to get started.
Task: Start saving a pound a day or search pinterest for fun challenges.
That's 3 ideas to consider when saving for an emergency fund. I know it feels impossible but never forget small change can still add up to huge amounts. I have included a free emergency fund tracker to help you on your way!
Good luck!
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