Part of the fun of life is that you never know what’s around the corner. Unfortunately, that can also be the less-than-fun part. It’s nice to randomly meet a new person who becomes a close and trusted friend; it’s not so nice to lose your job, experience an injury, or go through any of the other things that can derail your capacity to live life to the fullest.
It’s recommended to have 3-6 months’ worth of living expenses set aside in an emergency fund so that you tackle these issues head-on. Still, even if you have built that fund, you’d probably rather not spend it if you don’t have to — and maybe you don’t. In this post, we’ll run through some handy tips that’ll help you to preserve some or all of your emergency fund, or at least make sure that it goes as far as possible. With these tips, you might find that your 6 months’ worth of living becomes nine months’ worth.
Close Your Wallet
Facing a tricky financial situation? Then close your wallet. You’d be amazed at how much you can save when you have to justify every dollar that you spend. Even if you have some wiggle room, choosing to only spend $5-10 a day (minus compulsory expenses) is a smart way to keep your bank balance intact. It’ll either help you avoid having to dip into your emergency fund or ensure that you’re not overly reliant on it.
Recover Owed Costs
In some cases, you’ll have no choice other than to dip into your emergency funds. There are instances, however, when you may be able to recover the money that you’ve spent. For instance, let’s say that you had a big medical expense that was denied by your insurance company. In that case, working with a lawyer to appeal that decision will be recommended. Maybe you had to spend your savings because you were in a car accident that wasn’t your fault, in which case you can work with a team of personal injury attorneys to fight for compensation. You might have to spend money initially, but it’s always worth looking to see if there are options for recovering the costs.
Look at Government Assistance Options
Facing an issue that impacts your financial situation can feel like an isolating experience, but it’s important to remember that there’s often help available. For example, if you lose your job, then you may be eligible for unemployment benefits or one of the many food assistance government programs. It’s always worth performing a quick Google search to see what’s available in your state; doing so might make things significantly easier for you!
Find Temporary Work
Finally, if you’re experiencing financial hardships, then consider taking on temporary work. Working a few hours a week for a month or two might be all it takes to keep your emergency fund safe, secure, and untouched. That way, you can save the money that’s in your savings account for when you really need it.
