Ways to Collect Emergency Funds

Having an emergency fund is very important, because it is to anticipate something unexpected in the future. There are various ways to collect these funds, you can start by saving, reducing monthly bills or having other sources of income.

Even though there are various ways, many people still fail to have an emergency fund. Even from a research that has been done, it is stated that there are only 44 people who are willing to spend unexpected funds of up to 1000 dollars with cash. While the remaining third prefer to borrow.

A financial planner states that the amount of emergency funds that a person should have at least three to six months for living expenses. It would be much better if you can set aside for 1 year. One way to raise an emergency fund is to save.

But there are several other ways that you can apply later. For those of you who are curious about what ways to have an emergency fund other than saving, then here is the review.

How to Collect Emergency Funds?

Use Credit Cards Only As Necessary

The first way you can apply to have an emergency fund is to use a credit card as necessary. Credit card balances can be charged up to 20% per month. Even though it may not be much, this amount is certainly better to use for saving emergency funds, so you should use a credit card as necessary.

In addition, here you do not need to have more than 2 credit cards, unless here you are the owner of a business. Therefore, the selection of the credit card that will be used until later only 2 left.

Saving Money in a Safe Place

Savings accounts at online and local community banks are still one of the best places for you to make sure you have access to money when you need it. If here you lose your job or start a business, then of course you will need money quickly.

Selling Unused Items

The next way to collect emergency funds that you can do apart from saving is by selling goods or other things that are rarely used or even not used at all.

For example, when you have a shirt which you have never worn here, you can also sell it on the sales platform. The same thing can also be applied when a household utensils, goods or other things that you have rarely used or even never used here

With today’s technological advances, the process of selling goods is easier to do. You can sell these items through applications or social media. By utilizing social media for the process of selling used goods, you will have no trouble.

Looking for a Side Job

The last way you can apply to get an emergency fund is to look for a side job. You can make more money not only by selling goods, but also by selling skills.

Some websites nowadays have made it possible for you to be a side job so that you can create extra money. Especially for those of you who do have talent and skills, then you can try additional income by offering services through social media.