You need a stable
and honestly, you simply must have one today. The economy has always been a slippery slope, but then, for that matter, so is life. Having a plan of action is the smart thing to do, but for so many families it is one of the most complex and difficult to achieve. The steps to getting started with an emergency fund are only as hard as you make them. You have to be willing to stick to a budget, possibly even a frugal one. You also have to be willing to seek long-term results.
Current statistics across British Columbia illustrate that
Canadians 35 years of age and under
who have incurred debt are unprepared for an adverse financial event, whether it be from illness or job loss. According to the
, an average 70% of "respondents" have significant debt and have no idea what they would do if a sudden illness or crisis occurred. While you can't predict personal life circumstances you can certainly be prepared for them. Here you'll find how you can begin taking the steps to start building an emergency fund today.
Begin Taking The Steps To Build An Emergency Fund Today
Start with a positive plan and have a purpose
If you're going to start positive you need to have a goal, or a purpose for beginning an emergency fund. Once you define what you're establishing it for then perhaps you won't be as likely to dip into it. Remember, it's important to start small and build from this if you hope to make steady progress. So, know your goal!
Make sure you discipline yourself at the beginning
Have rules related to your emergency fund so you'll be able to navigate through the uncertainties in a positive manner. For instance, if you plan to deposit $25 a week then do so and don't make excuses. Whatever you set your goals to, you need to consistently meet them. Don't look for an alternative, stay on course!
If there is no way for you to take steps to get ahead you might look for an alternative
Putting money aside
can be difficult for those families who are already having a financially difficult time. You might be able to start making progress if you reach out to a financial advisor or seek out professional credit counseling services to begin taking steps to gain control of your debt and begin setting goals for the long-term.
Set up your emergency savings fund separate from your primary account
If you establish an emergency savings separate from your primary chequing account you won't be as tempted to spend it. Furthermore, establishing precautionary measures is simply smart and will definitely help you meet your long-term goal, which is saving money and preparing for your future!
Open an account that will provide you with more interest on your money
You can ask your financial institution about an account that might bear more interest on the more cash you regularly put in. This might encourage you to save more than what you normally would. You also want to shoot for an institution with the lower fees but a decent interest rate--and watch your money accumulate faster when you do.
Automate funds into your emergency savings fund
Set up an automatic transfer into the emergency savings fund that you can't change and treat this just as you would a bill. Once you deduct the money from your primary account you mark it off as if it is no longer present. Financial experts believe this helps prioritize better, but you'll never know until you try it.
Look for ways you can cut expenses comfortably
If you can cut back on entertainment or other areas of your life you can grow your emergency fund faster and you can definitely feel more confident in meeting obligations no matter what happens in your life. If you go out to eat often, cutting this down to twice a week can make a huge difference. Target what you can live with and what you can live without and go from there.
Don't sabotage your efforts, stay focused
No matter how large your
might grow, don't look for reasons to use it unless there is a real emergency to do so. Some make rationalizations for doing so, but this can sabotage your long-term goal and get you right back to where you started. Manage and maintain your goals and stay focused.
Just remember, the smallest savings can be a clear life saver in times of emergency as even a little bit can help with necessities. This is a process, but once you become comfortable with it, it will become second nature to you and really give you something to feel confident and positive about.