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7 Ways To Avoid Being Kicked When You’re Down!

Emergencies are the fastest way to derail your finances. It doesn’t matter how organised you are, if the unexpected happens you can guarantee your finances will fall apart while you try and recover. It doesn’t even have to be a huge emergency, something as small as the washer deciding to have a meltdown can throw your entire budget into the rubbish. The smallest thing could throw your whole budget balance into financial crisis, and the best way to avoid that happening is to always ensure you have an emergency fund ready and waiting in your account. The exact amount you should have is really going to depend on your income and what you need to have ready to cover your rent and your regular outgoings. For some people, having six months of expenses covered at all times in a savings account is an absolute must. For others, not having savings at all is the norm – though it really shouldn’t be!

An emergency account isn’t just there for those broken-down appliances or quick trips to the emergency room when one of the kids needs a last-minute set of stitches after injuring themselves. It can be there in the event of an accident or injury that put you out of work and at rest for a few months. Your emergency savings can act as an excellent cushion while you wait for a compensation claim to settle after an accident, and you could check this updated 2018 injury compensation calculator to find out what you could be due. An accident that puts you out of work and leads you to stay at home for a few months is usually one that warrants a compensation claim, and you wouldn’t have seen it coming. It’s important that you try and prepare for the unexpected, especially as you don’t know how long the unexpected could last! Trying to save six months of expenses sounds like a ridiculous idea. After all, you need your current salary to live on, not to save up, so this is where it’s obvious that you’re going to take some time. You need to organise your money so that you are piling a chunk of it into your savings account every month and are slowly building up the emergency savings that could save you a lot of trouble should something go wrong that you didn’t account for. The way you should look at it, is that saving pieces of your salary every month is not going to be necessarily fun, nor will it be easy. It will, however, be worth it in the end when you find yourself with a broken freezer and you have the means to cover it!


So, how can you start boosting your savings account and give yourself some peace of mind if anything should go wrong? The best thing about these ideas is that you could use some of them to get yourself out of a debt hole and into the black again.

It’s All About The Hard Sell

Garages, attics and basements are usually full of junk that has been banked for years and never touched. You’ll also find that you have trinkets and electronics dotted around the house that are stashed away and never used. You could start decluttering your space by holding garage sales, car boot sales and even locking onto the Facebook selling sites to sell your items. Usually, a financial crisis comes as a direct result of buying too many things or spending too much money on nothing. Check out your wardrobe and whittle it right down to the clothes that you’ll actually use rather than those that you won’t be wearing for another six months. Sell everything and anything that you haven’t used in the last year and bank the money in your savings account.

There Is No Job You’re Too Good For

Working a full-time job all week is exhausting, we all know that, but if you need the extra income and you want an emergency savings account, then you need to get yourself a second gig. This could be anything, really. Turn your hobby into an income. Badger the local cafes and bars and find out if there are any evening or weekend shifts going. You could even sign yourself up to be a driver with Uber or local takeout places. A job is a job, and you need the extra cash. Sure, it’ll be tiring, but it doesn’t have to be a permanent fixture in your life. Earn what you need and move on.

Don’t Make Childcare An Excuse

A lot of people find they can’t go out to do a second job due to having children at home. This doesn’t have to hold you back! Offer yourself as an after-school sitter for your friends and other parents at the school who don’t have the childcare? If you’re good with computers and technology, you could start your own blog or become a virtual assistant. There are plenty of opportunities to work from home, you just have to be willing to get out there and find them. Every penny that you earn with an at home side hustle can go straight in your savings account and add to your emergency fund.

Slice Your Expenses

Look at your budget. Can you find places you are currently grossly overspending? Even your groceries could be cut back simply by switching brands. Using comparison websites for your utilities and your broadband could make a massive difference to how much you spend out at the end of each day, with your budget slowly shrinking, your emergency fund could be slowly growing. Moving all the money that you don’t spend each day straight into your savings account could quite literally change your life and the way that you do things. Meal planning and writing grocery lists could make a huge difference to how much you spend when you shop. If you are physically looking at the things on the shelves, you are less likely to spend the cash because you can see exactly where it’s all going.

Learn Skills

You may already know how to knock up a nice evening meal, but if you are expanding your cooking education, you could stop eating out so often and learn to cook international cuisine at home. It may be convenient to book in at your favourite restaurant a couple of times a week, but your wallet will disagree. It makes far more sense to learn to cook your favourite foods and make them at home. You can do it in a budget-conscious way so that the money you would have spent on your meals out goes into your emergency fund.

Freebies Are Life!

Wherever you can, aim for freebies. It’s amazing how many things that you can get for free. If you have managed to find the money for a refrigerator at the last minute and without an emergency fall back, hold off buying that new refrigerator. Check our Freecycle, Craigslist and Gumtree first. Scour the Facebook selling sites as well, as you could find a gem of a refrigerator without even trying too hard. People often put up perfectly good appliances for cut prices due to house moves or renting a place with furniture included. It’s these gems you can find and that cash you’ve got in your hand for you new buy can be the beginning of your emergency savings. Swap buying beauty products and learn how to make your own hair and face masks with things you could find in your pantry. You’ll never spend dollars on hair masks again.

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Holiday In The House

If you are used to a yearly vacation, then it’s time to change what you are used to. Not having an emergency cushion means you have nothing to catch you when things go wrong. So, spending thousands on a break away for a couple of weeks but also saying you cannot afford emergency funds? Let’s avoid the hypocrisy! For at least one year, turn your living room or garden into a vacation spot and save the money into your savings account. You can be frugal for a while to get that six-month savings cushion plumped up. Once you hit your goal, you can slow down the frugality and go back to booking vacations abroad.

Building a fund that could support you when the faeces hits the fan is important. The last thing that you need when you are already low is to worry about how to pay the electricity or make the mortgage payments. An emergency fund is going to be your lifeline when things go wrong, and you can really see the difference in stress levels if you know you are going to be looked after if your job was no longer an option. There are plenty of resources such as this to tell you what apps you could use to help your savings goal become a reality. Don’t be left behind when things go wrong; prevention is better than cure.