Advertising
Advertising

No Debts! Eight Simple Ways to Save for an Emergency

No Debts! Eight Simple Ways to Save for an Emergency

Most people amass huge amounts of debt during their youth, which they are unable to pay off for many years. There are some who manage to keep their debt in check, or even remain debt free, but once a disaster strikes and there are suddenly some hefty unexpected bills to pay, they too can find themselves in a deep financial hole that’s difficult to dig out of. This is why it is important to have some money squared away for rainy days.

An emergency fund can help you deal with things like your car breaking down, you or someone you love getting seriously ill and spending a lot of time in the hospital, or being invited to an out-of-the-bloom wedding. However, once you have paid the bills, made your credit card and other payments, and spent a large chunk of your salary on groceries, there is often not much left for your emergency fund. Well, fear not my friend, there are plenty of ways to get a bit of extra money and build up a decent emergency fund.

1. Sell your junk, and some of your valuables

Yard sale

    A quick rummage through your basement, attic and garage can reveal plenty of fairly useful stuff that just sits collecting dust. Just because you don’t have any use for it doesn’t mean that you won’t be able to find someone who will. Take all the junk out and organize a yard sale. You can also look at some of your valuable items that don’t have a lot of emotional value for you–things like paintings, home décor, some jewelry, that relatively new tablet that you barely use, and so on. You can use websites, like Ebay or even some forums, to sell virtually anything that you have lying around.

    Advertising

    2. Make a big shopping run once a week

    The quickest way to burn through your salary is to use your credit card for small purchases throughout the day. It’s very difficult to keep track of how much you’ve spent–hint, it’s a lot more than you think–and you’ll constantly think of something else you need or want. If you only go on a big shopping spree once a week, with a carefully crafted list, and use cash for any minor purchases during the rest of the week you will be able to control your spending much more effectively. Buying things in bulk can often save you some extra money on different items as well.

    3. Avoid overpriced big-name brands

    Stone vs iPhone 3G

      While it’s worth investing in more expensive high-quality models when it comes to shoes, electronics and cars, for example, a lot of the products out there are very easy to manufacture and utilize cheap active ingredients and materials–that which makes them work. Such items include toothpaste, shampoo, soap, a variety of skin care products, simple t-shirts, most drugs and workout supplements.

      In order to find the best deals and the most cost-effective options, you just need to be patient and dedicated when shopping. Take your time and really look around. With a bit of trial and error, you will soon find out which items you can and can’t cut corners on. By sticking with the basics and going for functionality over marketing hype, you can cut your shopping costs in half.

      Advertising

      4. Look for another job

      An additional source of income can really help make things easier if you want to save for emergency, without sacrificing much in terms of comfort. You can make use of any skills you might have, or just go with a simple job that doesn’t require a lot of skill.

      Even if you don’t have any particular skills, you have plenty of opportunities to get some free training for a bunch of different professions, from web designer to teacher to nurse aid. These are all jobs that can help you earn a decent amount of money on the side. Be sure to contact your friends, family and acquaintances to see if there are any positions open where you would be a good fit–a bit of networking can yield some impressive results.

      5. Do freelance work

      Freelance work

        If you can’t find the time or energy to work two jobs, you can consider doing some freelance work from home. Even after a long day at work, you can find the energy to sit down at the computer and clock in another 3-4 hours at the computer. Most of us end up spending as much time on the computer playing games or updating our social media profiles anyway, so it’s easy to make a shift to doing something a bit more productive.

        Advertising

        Check out websites like Elance or Freelancer, and you will quickly find tons of available jobs for anything from writing, data entry, editing and translation, to website and app design. If you’ve got a bit of talent and skill, you can make a quick buck. You won’t get enough to support your family with a few work hours a day, but it will be more than enough to quickly build up a respectable emergency fund.

        6. Monetize your hobby

        Another great way to secure some extra income that you can save for an emergency is to find a way to earn money from your hobbies. You may be able to sell all manner of handcrafted décor and jewelry on Etsy, hold martial arts classes in your garage, teach people how to sing or play piano on Skype, sell some unique collector’s items and so on. You can even pick up a new hobby as a means of becoming proficient in a certain area, say woodcarving, with the ultimate goal of earning some extra money out of it. Almost any hobby can be monetized one way or another, particularly if you’ve acquired a good deal of skill over the years.

        7. Start obsessing about your carbon footprint

        Eco conscious

          Even if you aren’t much of a hippie and don’t care about the environment, which you should, there are plenty of hidden benefits to being an eco-warrior, namely cost reduction. You see, the way we get our energy isn’t all that clean or good for the environment. Even electricity is produced in power plants which are responsible for around a third of all U.S. greenhouse gas emissions.

          Advertising

          Our cars pollute the environment, we use up a huge amount of natural resources and create incredible amounts of garbage that gets thrown out. You get the gist of it. Once we start being more eco-conscious we stop leaving the lights on in rooms when we leave, turn off the devices when not in use, never leave the water running longer than it is necessary and use our cars less often.

          A few simple changes around the home can help save a whole lot of money in the long run. Installing and programming a decent thermostat can shave about 25% off your heating bill, while improving your home’s insulation by caulking up windows and doors, using draft stoppers and window insulation film will bring the cost down even more. Invest a bit of time and effort into converting your home into an eco-friendly zone, and try to reduce your carbon footprint as much as you can. This can make a big difference in how much money you spend every month.

          8. Start making good use of piggy banks in your home

          When people say that every penny counts, they are being quite literal, and quite right. Loose change, one dollar bills and a few fives and 20s here and there–you can spend these without even realizing it, or you can put them into your little savings box each chance you get. It is not something that will reduce your quality of life–in fact, you probably won’t even notice it at all–but all this leftover change and a few larger bills will slowly add up.

          Get a big enough container and put a little something in there each day–even just the loose change in your pocket at the end of the day. After several months, when you open it and pour the money out on the table, you will be pleasantly surprised. It’s not uncommon to see people save up a few hundred dollars this way, without any special effort.

          Staying out of debt is a matter of being responsible with your money and being prepared for unforeseen circumstances. A good emergency fund will help you get through tough times. Anyone can save up a decent amount for money for their emergency fund as long as they heed some of this basic advice.

          More by this author

          Ivan Dimitrijevic

          Ivan is the CEO and founder of a digital marketing company. He has years of experiences in team management, entrepreneurship and productivity.

          40 Amazing Date Ideas for Valentine’s Day 50 New Year’s Resolution Ideas And How To Achieve Each Of Them 8 Fun and Unique Birthday Party Ideas for People in Their 20s 50 Cleaning Hacks for Your Home That Will Make Your Life Easier 9 Unexpected Benefits Of Foot Massage That Make You Want To Have One Now

          Trending in Money

          1 9 Millionaire Success Habits That Will Inspire Your Life 2 How to Set Financial Goals and Actually Meet Them 3 How to Develop a Millionaire Mindset in 6 Simple Steps 4 How to Eat Healthy on a Budget (The Definitive Guide) 5 Top 5 Spending Tracker Apps to Manage Your Budget Smart in 2020

          Read Next

          Advertising
          Advertising
          Advertising

          Last Updated on April 28, 2020

          9 Millionaire Success Habits That Will Inspire Your Life

          9 Millionaire Success Habits That Will Inspire Your Life

          As technology evolves and information becomes more accessible, it has also become more challenging to define success. A lot of people are trapped in the rat race while trying to discover the actual formula for success.

          You could become overwhelmed with what tools, techniques or philosophies to imbibe while trying to get tips over the internet. At every click and turn, there are ‘how-tos and quick-fix’ on how to become successful overnight. You will find several courses, articles, videos and books on how to achieve financial success.

          But what if I tell you it doesn’t have to be complicated as people made it out to be? What if you could achieve success by merely following these 9 millionaire success habits?

          1. Read for Personal Development

          A daily habit I have discovered millionaires share in common is reading. For instance, if you are an entrepreneur, you need to read to become an efficient leader and a productive business owner. Reading helps you to grow and learn without going to a business school.

          A research conducted by Thomas Crowley indicates about 85% of self-made millionaires read at least two or more books each month. [1] Warren Buffett is one of these examples. He spends 80% of his day reading. In the early days of his investment career, he would read 600 to 1000 pages in a single day.

          While millionaires sometimes read for pleasure, they also learn to improve themselves. They read topics on leadership, how-tos, self-help, biographies, lifehacks and also follow current events.

          Here’re some recommendations for you: 25 Best Self Improvement Books to Read No Matter How Old You Are

          2. Establish Multiple Sources of Income

          Another success habit I noticed about successful people is that they don’t depend on a single income source. Every millionaire possesses multiple sources of income. This helps them to manage economic challenges and also make more money.

          They are passive income addicts. They earn interests from loans, rental income from real estate, royalties from intellectual properties, dividends from investments. They also launch a side business or run a website or sell information products.

          How income is made either passively or actively is what separates the successful from the wannabes. They are always learning ways to build multiple streams of income.

          Advertising

          3. Live on a Stipulated Monthly Budget

          An average millionaire does not believe in luck and jackpot. They take the time to understand cash flow-income and expenses. Based on this, they establish a monthly budget and religiously stick to it.

          The essence of the budget is to minimize unnecessary expenses. This will help you gain complete control of your financial life. Budgeting helps you to avoid overspending to achieve your financial goals. Here’re some tips to help you stuck to your budget: 32 Hacks for Sticking to Your Budget

          4. Manage and Maximize Money

          The most significant education for a millionaire is financial intelligence. Nobody attains financial freedom without gaining financial intelligence. This is the more reason millionaire, regardless of their income, keep their knowledge about tax strategies updated.

          They always seek to reduce their tax bills. One approach they employ is by living or incorporating their business in states with no income tax.

          Do you know that about 60 companies paid $0 legally in the 2018 tax year? Some of these companies that ‘avoided'(note: not evaded) federal income tax include Chevron, Amazon, Halliburton, General Motors, Delta. Their US income was totaled at $79 billion with an effective tax rate of -5%.

          What’s the deal? They got a tax refund.

          How do they accomplish these?

          An ITEP report indicated that they have the culture of throwing huge sums at tax experts who assist them in discovering creative, as well as convoluted means of paying little tax as much as possible.[2]

          5. Avoid Debt

          Another habit that separates the millionaires from the rest of the world is how they manage debt.

          They don’t live an extravagant lifestyle; instead, they only buy what they need and can pay for. They do not book hotels and flights by using their credit cards to pay for them.

          Advertising

          They are conscious of the interest rates even when they use credits cards or take loans. If possible, they try to pay with cash because of its zero percent interest rate.

          6. Set Daily Goals

          It does not matter if they are setting up a business, a career, or financial projections; they have the success habit of setting short term goals. They plan daily and weekly goals to generate momentum in achieving their long-term goals.

          Ensure you prioritize when setting daily goals. This will help you to achieve the most important to-dos on your list.

          Setting priorities will help you to focus on highly rewarding activities. If you desire financial freedom, it is wise to pursue activities that earn you thousands of dollars rather than hundreds of dollars.

          7. Don’t Act Rich

          The goal is not to act rich but to be productive. Interestingly, Thomas Stanley buttressed in his book that for the most prestige brands of cars, about 86% percent are toys of the non-millionaires. While most believe that people with huge fortunes tend to drive exotic cars, in reality the largest consumers of pricey cars are aspiring millionaires.[3]

          According to findings by Experian Automotive Researchers, 61% of individuals who earn $250,000 or more rarely buy luxury brands. Instead, they buy Hondas, Toyotas, and Fords like the rest of the world. The reason is they are not ready to spend money on premium cars that tend to drop in value in a couple of years as it would cost money. Millionaires invest in assets that appreciate.[4]

          8. Own or Buy Businesses

          In Robert Kiyosaki’s cashflow quadrant, he divided how you earn income into four quadrants. The E and the S quadrants take the left position while the B and the I are on the right side. According to Robert, it is possible to be on all quadrants, but the millionaires are not.[5]

          • E stands for employee – they work for others
          • S stands for self-employed – they work for themselves
          • B stands for a Business owner- employees work for them (500 or more employees)
          • I stand for Investors – Money work for them like Warren Buffet.

          Your goal is to move from the left quadrant to the right quadrants where you own big businesses or make money work for you.

          It is possible to become financially successful by pursuing what you love. For instance, if you love writing, aspire to be the best seller. Wealth and passion work together.

          Check out How to Start a Small Business with Little to No Money for tips.

          Advertising

          9. Avoid Get-Rich-Quick Scheme

          A millionaire holds patience as an essential virtue. It takes patience to become successful, not only in finance but in every aspect of life. While it is possible to become financially successful at an early age, most millionaires hit it at age 50. They live a moderate life, invest in their future and retire rich.

          Bonus: How to Develop the Millionaire Success Habits?

          Having learned these habits, the next question is,

          How can I develop the Millionaire Success habits?

          Here are six values you will need to develop:

          Establish Your Life Vision

          You need to be clear about what you want in life to set yourself for a life of success. Your vision has to go beyond becoming a millionaire to understanding why you want to become one. Any great entrepreneur you will ever find has a clear vision and an established mission.

          Understanding why you are doing what you do will drive you to become the kind of successful person you want to be.

          Make Your Passion a Profession

          When your passion becomes your profession, work becomes pleasurable. Loving what you do enables money to flow to you and through you.

          So what’s going to be? Wake up every morning by speaking positive words into your work, love what you do, and focus on the work that brings you joy.

          Take a look at this article and learn how to make it happen: 5 Steps To Turn Your Passion Into A Career

          Focus on Solution

          Focusing on the solution means establishing the problem that you or your business address. This will help you focus on the solutions when others are faced with challenges.

          Advertising

          A millionaire has a mindset that is fixed on the solution. He or she knows there’s a way out, and that every problem is an opportunity in disguise.

          Improve your problem solving skills with these tips: 6 Effective Ways to Enhance Your Problem Solving Skills

          Develop Your Leadership Skills

          Leadership skills are an asset that is indispensable if you want to develop a millionaire success habit. The more you hone your leadership skills, the more you will attract leaders who share your values.

          Be Growth-Focused

          Millionaire entrepreneurs prioritize self-improvement. Here’s how to achieve it:

          • Get a coach. Coaching will impact your life, and you will achieve peak performance in life and business when you have a life coach.
          • Be coachable. It is not enough to have a coach; you must be coachable. Sometimes, you need feedback and counsel to reposition your life and business. A coach has the wisdom and experience to counsel you from a higher perspective. The more you receive feedback and work on yourself, the more you become better at what you do and who you are.

          Flip Your Thought Pattern From Acting To Being

          It is not enough to have a millionaire success habit, you must also become a person of positive influence. This is how you can become significant. Bill Gates is not only rich; he is changing lives in Africa and different parts of the world.

          If you want to become successful, you must first be and think like a successful person. This is how resources you need can flow into your life.

          Here’s a final thought from me:

          It is not enough to do something to have something; success is about being someone who possesses what is needed to take positive and inspired actions.

          More Success Habits

          Featured photo credit: Austin Distel via unsplash.com

          Reference

          Read Next