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Building Your Savings: Tips for Creating an Emergency Fund

Adeyemi Adisa By Adeyemi Adisa 7 Min Read
build your savings and create emergency fund

If you live paycheck to paycheck or often beyond your means by using credit cards, you are not alone. But how do you build your savings and create an emergency fund for unexpected situations or circumstances?

As a matter of fact, one study shows that 60 percent of Americans would not be able to cover an emergency car repair, medical bill, or other sudden expense totaling $1,000.

You may feel that building your savings is difficult when so much of your paycheck must go toward paying bills, but there are a few strategies you can use for building your savings to act as a cushion against a financial emergency. 

Build your savings and create an emergency fund

Work to change your financial habits 

For many people, one of the greatest roadblocks to building savings can often be how they think about their finances. One common habit is thinking of money left over at the end of the month as disposable income that can be spent on a variety of enjoyable activities, including: 

  • Dining out 
  • Movie or concert tickets 
  • Weekend excursions 

While relaxation and recreation can help you feel good about yourself and your status, it may damage your financial standing in the long run. You can work to change the way you think about money by making room in your budget for savings so you put that money aside first before you spend it on leisure activities. You can also save money in this area by organizing games and movie nights at home. 

Consider the future 

When you receive extra income such as a tax refund, a bonus from work, or another windfall, it may be wise to consider future expenses before you spend it on something enjoyable.

For example, if you have a credit card that currently carries zero interest but you know that promotion will end next month, you can avoid finance charges by paying off the balance. Once you reduce or pay off that total, you may have more money to spend the following month. 

Use credit sparingly

Many American families carry over $16,000 in credit card debt, an amount that can be extremely difficult to overcome. One strategy to avoid this kind of debt is to use credit sparingly and only when necessary.


Avoid adding charges to your card when you can pay in cash or use your bank debit, and leave your credit cards at home whenever possible to avoid impulse spending. This may prevent late charges, increased interest, and negative points on your credit score. 

Cut back on auto-charge services 

How often do charges for streaming services take you by surprise each month? These are often set to auto-debit from your checking account and leave you short on cash until your next paycheck. Streaming services for television, music, and movies can cost $10-$15 a month and when you subscribe to more than one, the expense can add up quickly.

You can cut back by reviewing your daily or weekly usage of these services and canceling those you do not use often. In some cases, family bundles may be less costly than individual accounts, and you can apply the extra cash to your savings. 

Improve your budgeting skills 

You may be hesitant or unsure about your ability to create a solid household budget, but there are tools available to help you shop for most of your household needs, from groceries to insurance to educational necessities for your children.

Smartphone apps may be of some assistance, as they can help you pinpoint where you may be overspending or impulse buying. When you grocery shop, make a list of what you require and stick to it, as impulse buying can put you over your budget and require you to charge the rest. 

Save before you pay 

Once you decide what percentage of your paycheck will go toward building your emergency savings, putting that amount in the bank before you pay your bills can help you develop the habit.

For example, if you decide to put away 10 percent of your pay each period and you make $800 weekly, deposit the $80 into your savings before making any other transactions. Doing so can help ensure steady deposits and may help you build your savings faster. 

Ask your bank for advice 

Even if you already have a savings account, asking your bank for advice about which types of savings yield the highest interest or limit withdrawals could help you pad your emergency fund with more effectiveness.

Some banks, such as GBTI, offer a wide range of services connected to savings, including electronic banking that may make tracking your savings simpler and more convenient.

If you have more than one savings account or decide to create one for a specific emergency, such as an unexpected car repair, your bank may be able to help you find an account type that best suits your savings needs. 

Building an emergency savings fund can be challenging, especially during times when your budget gets tight, but there may be more ways to save than you know. Smart spending, the conservative use of credit, and improving how you manage your budget can help your savings grow. 




Building Your Savings: Tips for Creating an Emergency Fund
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Adeyemi Adisa is a brand enthusiast who loves blogging, affiliate marketing, and internet entrepreneurship. I am a critic, a writer, a listener, a designer, a gadget lover. Join my world and let's rub minds together! Join me on Facebook | Twitter |!
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