5 ways to rebuild your emergency fund

emergency-funds

New data shows half of us are regularly tapping into our emergency savings for non-essential expenses like holidays or nights out. 

If that’s you… it’s time to put the brakes on and start refilling the coffers.

Here are five ways to rebuild your emergency fund:

1. Use unexpected windfalls

Have a plan to make sure it all goes straight into the fund. Everything from tax refunds and wages rises to work bonuses and birthday money.

2. Set up an automatic debit on pay day

Organise for a fixed amount to be automatically transferred each month. It eventually becomes one of those unseen transactions which doesn’t even register so you don’t miss it.

3. Target a luxury you can do without

Some estimates indicate each household wastes at least 10% of its income each month on things it doesn’t need.

4. Pad your account with dividend earnings

Build a share portfolio of good dividend stocks and deposit those dividends in your emergency fund.

5. Collect spare change

Have everyone in your family empty the change from their pockets at the end of each day. At the end of the month, deposit it all and watch it grow.

Looking for effective ways to get your finances in shape? Sign up for Kochie’s Money Makeover, an online course that will help you take control of your money once and for all. Click here for a $20 discount code.

SHARE THIS

RELATED ARTICLES

LEAVE COMMENT

A few years of stellar returns has convinced many people that investing in property is a sure thing....

READ MORE

How are your parents’ finances?

It’s a funny thing when you realise that your parents are old. It makes you reflect on their...

READ MORE

Make Money Fast

7 ways to make extra money… fast   Everyone has a moment of financial desperation. An unexpected big...

READ MORE