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If you find that you're having a hard time funding your emergency savings account here are a few tips that could help. First, sit down and have a talk with yourself. Ask if there aren’t areas where you could cut back. We'd be amazed if you don’t find some. Also, try to bank any extra income. For example, if you were to get a raise don't just spend the money. Put it away in your emergency fund. Ditto if you get an income tax refund. Will you soon be paying off an auto loan or some furniture? That's also money that could go in your emergency fund.
Have you heard of Digit? This is a free app that you link to your checking account. It analyzes your income and then automatically transfers a little bit of money to your Digit savings account each week. This will be from $5 to $50 – depending on your income -- but never more than you can afford. When your Digit account reaches a certain level you move the money to your emergency fund.
You can also make a habit to stash your spare change. At the end of every day gather up those dollar bills or coins you have a rattling around in your pocket or wallet and put that into your emergency fund.
Finally, sell stuff you don't use. You probably have a lot of items just lying around gathering dust. Figure out their value and then sell them on eBay or at a consignment store – whichever you’re most comfortable with.
It will happen quicker than you think
Were you shocked when you calculated how much you will need for an emergency fund? Well, take a deep breath and relax. Remember this is a goal and not something you have to achieve in just a year. Quit thinking about that ultimate goal and focus instead on how much you need to save each month to reach it. Stay the course, keep tucking away some money each month and before you know it you will have reached your goal and will be prepared to face any unexpected emergency comes your way.