Start Building Your Financial Safety Net

| June 9, 2017 | 0 Comments

You can’t predict the future, so even if you’re financially comfortable at the moment, you can’t guarantee that you won’t suffer a costly mishap somewhere down the road. However, you can take steps to ensure that accidents or setbacks don’t drain your finances. Since trying to avoid them altogether is an unreliable solution, the best thing you can do is start building a financial safety net so that you can stay completely in control during a crisis. Here are a few ways you can begin your emergency fund.

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Start saving

When you have a steady income, it’s a good idea to set a small amount of money aside each month. Ideally, you should set this money to come out automatically each month so that you can just forget about it and let it slowly build. If there’s ever an emergency, such as home repairs, accidents that result in hospital stays and missed work, or major financial setbacks, you’ll be pleasantly surprised to see how much money you have to see you through this difficult time.

Reduce your loan payments

In the past, you might have taken out loans to tide you over until your next payday, and you were certain that you would be able to pay it off soon. Unfortunately, sometimes things don’t go according to plan and you might end up in more debt than ever. Fortunately, not all is lost. All you have to do is reach out to a bank or debt helpers and ask them to consolidate payday loans, or any other debt you might have. It’s that easy! Experts can eliminate late fees, stop collection calls, and lower you monthly payments so you have more money to spend on necessities.

Earn money online

If you have a bit more free time in the evenings, you could also pursue other online ventures. Test your skills as an amateur filmmaker, post your videos on YouTube, and then enable adverts so you get paid each time somebody watches them. Over a billion people visiting YouTube every single month so finding viewers for your videos isn’t difficult. Alternatively, if the written word if your preferred art form, then you could try to get paid for writing articles. You can apply for a part-time position with a content writing company and write as many articles as you can in your spare time, or you can try to pitch stories to local newspapers and online magazines.

Trim your bills

Even if you pay your bills yearly, you can find ways to cut down how much you pay for water, energy, and wifi every month. The easiest solution is to go green. Start by switching to energy efficient LED bulbs, unplugging all appliances you’re not using, and insulating your home so you don’t need to turn up your thermostat as much. Doing these small things can reduce your energy consumption, saving you money on your bills each month and helping the environment.  Going paperless with your bills can also save you money.

 

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Category: Personal Finance

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