As you begin developing wealth, you know there is nothing as important as having a fall back plan—an emergency fund meant to cover you should something unexpected happen. But, as any young investor knows, even Jason Hartman early in his career, it is sometimes difficult to meet basic expenses, let alone begin a savings account for emergencies. Fortunately, we’ve got a few tips and tricks that will help you along your way.
It may seem overly obvious, but one of the best things you can do is set aside just a little bit of your paycheck. You know how much bills will be (approximately) and how much you will have leftover. Instead of spending that money on luxury items, take just a bit and put it into a savings account that is not connected to your checking account. This way, transferring money will be more difficult and therefore less likely to happen.
By making small sacrifices like cooking at home, running outside instead of inside a gym, and opting for coffee at home instead of Starbucks, you’ll be able to save a bit of extra cash.
Pay With Cash
If you’re paying with cash, you’ll see just how much of your money is being spent and be less likely to spend it. This tangibility is something we lack in this mostly digital age—go green and watch the savings add up. For even more savings, put your change into a piggy bank and cash it in every six months or so. By essentially rounding up, you’ll make extra bucks. Some debit cards even offer this service.
Consider A Second Job
Though you likely work a full time job, consider other options. You might not have to wait tables to make a few extra bucks—look for jobs that allow you to work from your home. Often, freelance writing jobs are available and posted on message boards. You’ll make connections, hone your composition skills, and build your resume. You’ll also have the chance to earn a niche industry.
If writing isn’t your strong suit, find a second job that suits your strengths. Maybe you’re a talented artist or you love making jewelry. Either way, you have the chance to save a little bit of extra money.
So it won’t make you a ton of money, but it will give you a few extra dollars and a lot more room—have a yard sale or offload some things on Craigslist. Chances are, your closets are full of items you no longer use. Sell that gaming system/suit/bookcase full of romantic comedies and pad your emergency fund. (http://www.flickr.com/photos/seanmolin/5364137071/)
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