4 ways to start your emergency fund

 

If you are looking for an awesome way of living a life with dignity and respect, then hold tight.

Yes, the following post will throw open various ways and avenues of how you can actually create a wonderful option for yourself.

Do you know what is the most uncertain thing in today’s scenario? Well, “Life” itself. Although,  it is a bitter truth, yet it is the reality of life. You never know what the time has in store for you next. We have been grown up with the shocking news of so many millionaires whose business fallout jeopardized their financial life. We would have even seen some of these cases happening with our own near and dear ones.

Therefore, no body can be certain about his/her own financial life. So what, if there is a natural catastrophe like flood, storm or earth quake and your business crumbled like pack of cards  or even man made actions damaged your business? Similarly, you never know when you ended up with a deadly accident and there is a financial instability in your ever growing company which shockingly resulted in death knell of your company with your demise.

My own idea of writing the post is not to scare you but to give a sense of warning so that you bravely face some of the bitterest realities of life in a fool proof manner.

You should be smart enough in gearing up for those emergency situations. There can’t be a better way to prepare for such sort of situations than by creating an emergency fund.

Hence, now I am going to tell you 4 ways to start your emergency fund

Emergency fund can only be created if you are smart enough in taking out a space for saving from the (already) tight monthly budget

Don’t compromise over you “saving” process

We are living a life of hallucination since we feel that it will be next to possible for us to save money with the limited budget which we already have. However, if you are really serious, then you will at least take a look at the broad picture. After all, we can’t start with saving, unless and until we are really serious. Take little steps at a time and all will be fine for sure as it is one of the important ways to start your emergency fund.

Write down on your diary (which you normally use, or pin it down on the cupboard) etc that you have to take out “x’ amount of money on monthly basis as a part of savings. One of the easiest ways to save is to limit your weekend party to once in a fortnight, or even better if you do it one in a month as it will help you save.

Ask yourself

The best answer you will get in your quest of saving money is by asking yourself

  • What will I do, if I happen to loose my job?
  • How will my spouse cope up with the sudden illness or how will the future of my children shape without money?

It is these real-life and most important questions which will naturally instill a sense of fear in yourself and you will be able to give a serious look. Since, it is said that self-introspection do wonders and as you feel challenged to get answers from within, you will eventually be forced to start saving for your emergency fund as well.

You can make arrangements of watching movies right in your home or your friend’s home, rather than going for watching movie outside. This will save a lot as a part of individual tickets. Isn’t it? It is important to make conscious decisions and by doing so, you don’t have to fight with yourself in the process as well.

Regularly revise your goals on weekly basis

Another way to start your emergency fund is to start saving by setting small target. So, in the beginning try setting a goal for yourself of saving on weekly basis. Since, the target is small, you will better be able to work on them. It has its psychological effect.

If you are in debt, then the most obvious and prominent excuse which you will give in not having an emergency fund is that you are already paying the money of debt. However, even here you have to make suitable arrangements. In the event when you come across with a financial emergency, then in the absence of cash you will be forced to take loan with high interest which might even lead you to bankruptcy. Therefore, make plans to have an emergency fund which should comprise of at least three months of your salary and you should take steps for setting up the same on priority bases as well. In the process, you should equally make arrangements for paying off your debt too.

Conclusion

The reason why these ways can be termed as “easily attainable” because you can immediately adopt them (in order to take out savings) from your monthly limited budget. Therefore, show the true spirit of being successful by gearing up for such emergency situations and let your near and near ones live a life of ease and comfort. After all, you don’t want them to suffer because of your carelessness. So, ensure a life of prosperity, ease and jubilation by following the above 4 ways to start your emergency fund.

Hopefully, the post will assist you to be more cautious and carefully and take life with a charming prospective and zeal.

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