During my new personal finance course at Dillard University, I recently required the students to create a budget, track their expenses and my favorite part – determine what the required amounts needed for an emergency fund.
While the students thought this would be a “no brainer” upon graduating, the mere reality is, many people simply do not have an emergency fund.
According to Bankrate.com, only 23% of individuals surveyed had enough funds to cover six or more months of expenses with 26% of individuals having nothing saved at all. So today, I am challenging you to stop making excuses and save something!
For the next thirty days commit to saving more!
1. Eliminate one expense
Review your budget and determine what expense you can live without in efforts to save more money! Think about eliminating premium cable channels, eating out with friends, or just saying “no” to the mall! More importantly, don’t use the money to spend on other things. Put it towards building your emergency fund.
2. Save $5 per day
Consider saving $5 a day for the next 30 days. This could be an easy fix for many. In addition, it can help you quickly add an extra $150 to your fund. Of course this isn’t a great deal of money, but it is a great start! Start off by eliminating stops to fast food restaurants, bringing your lunch from home or simply reducing unnecessary purchases throughout the day.
3. Create extra money!
I talk about this concept all of the time. You have to think of different ways to create additional cash inflows. And listen, this doesn’t take much! During the next 30 days, offer services you know others may need! Whether it is photography, makeup, writing or consulting, look for opportunities to generate additional income.
Also, consider turning your “trash” into cash! This could be easily accomplished by selling an item you are no longer using on eBay or Amazon. You will be amazed how many people out there who want your old stuff!