How to Save for an Emergency

You never know when the unexpected will happen. That’s why it’s so important to start saving for an emergency before an emergency happens.

It's important to start saving for an emergency before an emergency happens.

You never know when the unexpected will happen. Whether it’s an unplanned medical expense, a car repair or a major appliance breaks down - an emergency is something that can put you in debt beyond your comfort level. That’s why it’s so important to start saving for an emergency before an emergency happens. Consider opening a savings account at Partner Colorado. Set a monthly goal of how much you can comfortably afford to put in an emergency fund such as $25.00 or $50.00. If you need help finding ways to contribute to an emergency fund, here are a few ideas.

Cut the Cord

You pay for hundreds of channels through your cable TV subscription, but how many of those channels do you actually watch? Consider choosing a less expensive cable package with fewer channels or cancel your cable subscription all together. Online streaming services, like Netflix and Hulu, are usually around $10 a month and can be a significant savings when compared to your cable bill.

Spend $5 Less Everyday

If you cut your expenses by $5 a day, you’d save $1,800 in one year. It could be something as simple as making coffee at home or bringing your lunch to work rather than eating out. If you need help figuring out where to make cuts in your budget, check out our Home Budget Calculators.

Sell What You Don’t Need

Help build your emergency fund by selling things around the house you no longer use. Have a garage sale this summer or sell things online with sites like Offer Up or Craigslist.

Don’t Spend Bonus Money

Every once in a while a little extra money comes your way whether it’s a bonus from work or a tax refund. As tempting as it may be to go on a shopping spree, put that extra bonus money into your emergency fund instead.

Cancel Unused Subscriptions or Memberships

Take count of all the subscriptions or membership fees you pay each month and then determine if it’s worth the money. Maybe you could go for a run in your neighborhood instead of paying for an expensive gym membership. You could also check with your local library to see if they have your favorite magazines. You can read them in the library for free. Life is always filled with unexpected expenses. Don’t get caught off guard - start building your emergency fund today!