Saving For An Emergency

Have you ever wondered what you would do if an emergency cropped up? Life is full of uncertainty and there are a wide range of things that can go wrong. If you aren’t financially prepared, it could make the situation a lot worse. Despite the fact it could really help, the majority of people never save for an emergency fund.

There are plenty of ways to save money on things like your shopping, your bills and any other service you purchase online. You can look for discount codes from sites in order to get the bet possible discounts and find out all the most pertinent offers. These can actually help you when it comes to saving money in your every day life and could be vital in times of emergencies.

If you’d like to make sure you’re financially prepared, below you’ll discover some of the best ways to help save money for life’s little accidents.

Save for your children’s future

Your children won’t be children forever, so it is worth thinking about all the things they may want, like a car, going to university, help with a home deposit etc, and look at how you can make a nest egg for them. An UGMA account is a way of saving for your children in a way that should be manageable, and is something you can do from birth. This account then grows as your child does, right up to adulthood. The contributions can up over time and can then be withdrawn whenever needed, to help your child achieve their dreams.

Creating a plan and consolidate your credit debt

The first thing that you really have to do before you start saving is to create a plan. This should include how much you will need in case of an emergency and how much you can currently afford to save each month. It varies on explanations on how much you should save each month, with one site saying it is a good idea to save between four to seven months’ worth of your income. This may sound like a lot but remember – you may end up facing more than one emergency. Whether it be vets bills, home repairs or redundancy; there are many things that can require emergency savings and these things have a nasty habit of happening in tandem. The Money Advice Service has a useful savings calendar which helps you to work out what you need to save each month.

One way you can help to save some of your income is by cutting your current bills. If you currently have more than one credit card, you probably have credit card debt which requires large payments each month, often with very little coming off the debt. Credit card debt consolidation with a company like Derby Advisors could keep all that debt in one place, replacing all your cards with one low interest rate payment. The money you are then saving in payments could then be put into your saving, rainy day fund.

Set up automatic payments

The best way to make sure you save is to set up regular automatic monthly payments into your savings account. Ideally you should set the date for the money to come out as the same day that you get paid. That way, you won’t have chance to miss it when working out your month’s income.

Consider freelance work

It’s all well and good saving money when you have it, but what if you don’t have enough money to save? A good way to earn extra cash to put into savings is to pick up freelance assignment. The internet has provided great opportunities for creative individuals to freelance their skills. It could be photography, web design or even writing. All of these skills can earn you extra cash in your spare time. Channel every penny you earn into a savings account and it’ll soon mount up.

Keep track of your progress

As with any goal in life, it helps if you keep track of what you’re saving. This will help to keep you motivated and give you peace of mind that you will be prepared if anything does go wrong.

Overall it can be difficult trying to save money and it’s always tough to remember to fix the roof while the sun is shining. Making sure you have available funds if anything does go wrong can give you great peace of mind and ensure you resolve the problem quickly.

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