An emergency can flip your life upside down. Whether you break a bone or experience a layoff, your life can change drastically in a day.
Unexpected events can be costly and stressful! To prepare for life’s curveballs, you can set aside money to cover financial expenses. Keep reading to discover how to build an emergency fund.
Why an Emergency Fund Is Essential
Emergency funds can provide financial stability. They can help you avoid draining your bank accounts to cover unforeseen expenses. For additional insights read What is an Emergency Fund and How Much to Save.
You can also avoid extra stress when a natural disaster or medical emergency occurs. Here are the top reasons you should create an emergency fund:
The world faces many natural disasters every day, so it is important to have an emergency fund. According to a report from Fortune, 57% of Americans cannot afford a $1,000 emergency expense. Many people are not prepared for unexpected costs that may arise. These could occur due to a natural disaster such as a hurricane, earthquake, or flood. An emergency fund can provide financial security while you get back on your feet. It is vital to have money set aside to prepare in case of an emergency.
Read 6 Disaster Relief Fundraising Ideas to Help People With Emergencies for more tips.
Unexpected Medical Bill
An emergency fund can be life-saving in the event of a medical emergency. An emergency fund can help you quickly get access to the funds you need. You won’t have to rely on borrowing or credit cards. The average cost of a 3-day hospital stay is around $30,000, according to HealthCare.gov. If you do not have insurance, this quick stay can eat away at your income.
Even if you have insurance, having an emergency fund can help bridge any gaps. It can cover what your insurance might not cover. Living without a safety net can cause unnecessary stress. By having an emergency fund in place, you can feel confident when the unexpected happens.
An emergency fund is an essential tool for financial security. An emergency fund provides a cash reserve for unexpected expenses or financial emergencies. These could include car repairs or medical bills. It can also provide a cushion if you lose your job for a short while. Read our blog post How To Pay For Emergency Home Repairs: 4 Options To Try.
Emergency funds can protect you from the financial burden of unplanned events. They can also provide peace of mind during uncertain times. Emergency funds can also help you avoid bad financial decisions. Borrowing money comes with interest, fees, and penalties. You can limit your stress and worries by starting an emergency fund.
How to Start an Emergency Fund
While it is impossible to predict an emergency, you can use these tips to prepare. Here are some strategies on how to start an emergency fund:
Create Habits That Help You Save
Developing savings habits is an important step in achieving financial security. It can be hard to get started. With the right strategies and tools, it’s possible to build up a healthy savings account.
You can spend less than you earn and automate your savings so that you save regularly. Other effective strategies include setting goals and setting up a separate savings account. With these strategies in mind, it’s possible to develop a saving habit that will benefit you in the long run.
Develop a Budget
Developing a budget is essential for saving money. A budget helps you track your spending and identify areas where you can cut back and save. You can set goals for how much money you want to save each month and determine your financial priorities.
By creating a budget, you can make sure that your money is going toward the things that are most important to you. With some planning and discipline, developing a budget can be an effective way to save money.
Consider Using a Fundraising Platform
Depending on your financial situation, you may not be able to start an emergency fund alone. You can reach out to friends and family through a fundraising platform. Express your need for an emergency fund and why it would greatly benefit you.
Update donors on your progress. You can also keep the funds on the platform until an emergency happens, so you do not spend it before. Donors will also feel better knowing you are using it for an actual emergency. This option puts less pressure on you to gather all the funds by yourself. Remember to show gratitude and thank donors for their contributions.
Sell Stuff You Don’t Use
Selling stuff that you don’t use is another great way to develop an emergency fund. Selling stuff provides you with extra money to put toward your savings. It can also help free up space in your home. You can start by going through your closets, basements, garages, and storage lockers. Find items you no longer need or want.
Sell these items on online platforms such as eBay or Craigslist. This can give you extra cash to build up your emergency fund. If you have any gold jewelry that you don’t use, it can be easily exchanged for money. These steps will help ensure you have enough money saved up to cover emergencies.
Be Ready for Unexpected Expenses
Now, you know how to build an emergency fund! You don’t have to rely on credit cards or loans when the unexpected happens. Start building your emergency fund today.
Set aside a small amount each month and place it in a savings account. With an emergency fund in place, you’ll be better prepared for whatever life throws at you in the future.
With AngeLink, you have all the tools and resources you need to succeed! Use our mobile-friendly Android and IOS app to update donors on your progress. We offer fundraiser achievement badges and free seasonal emojis.
Our built-in printable flier with unique QR codes helps with simplified donating. Fundraising fraud protection and easy social media sharing help you safely share your fundraiser. Plus, our customer love support team is available 24/7 for added peace of mind.
AngeLink’s Angel Grants also provide much-needed support to women business owners. The AngeLink Foundation offers grants to fundraisers looking for help during an emergency. Create an emergency fund at AngeLink to see what the power of women in fundraising can do for your cause!