An emergency fund is a fund you have set aside to assist with any financial hardship life may throw your way. When life throws these unexpected events your way, these can be very stressful and costly. Saving a small amount in an emergency fund can go a long way in an emergency event. Here are a few ways to save additional money:

Tax Refunds

If you are expecting a tax refund, then you can put this to use towards your advantage. There are a variety of options including debt repayment, investing, house fixtures, etc. If you don’t have an emergency fund or have used some of it, this is a good option to put some of your refunds towards your emergency fund. Putting your refund towards your emergency will help you make smart financial decisions when you are stressed. If this contribution does not cover 3 – 6 months of expenses, put yourself on a plan to contribute $50 every two weeks or more if you can afford to. Holding yourself accountable to this plan will go a long way to set you up for financial freedom. 

Cut Expenses

Make a budget to see where all your money is going, it opens your eyes to your spending habits. A lot of your spending is due to mindless spending that you are not aware of. Your budget does not need to complex. It can be very simple as making a grocery list so you don’t impulse buy or having all your travel expenses budgeted out. This is can be as simple as cutting out expenses like daily lunches, eating out on weekends, or daily coffees. You can substitute these expenses by bringing lunch to work, making coffee at home before you leave for work, etc. Reducing these expenses can help you contribute to your emergency fund. These reductions don’t have to be permanent. Having your emergency fund set up should be your top priority. 

Secondary Income

There are hundreds of ways that you can create a secondary income through a side hustle. This can be as simple as selling items around the house online, becoming a mystery shopper, Uber driver, etc. Here are some ideas to help you create additional income. 

While investing is important to growing wealth, always remember that your emergency fund is your safety net to mitigate any life events that require major financial commitments. Once your emergency fund is set up, you will be well prepared to handle the unexpected twists life throws at you and can live life how you want.