If you’ve never had an emergency fund—or you’ve recently depleted yours—it’s time to work on building up a cash cushion. Why? Having money set aside in a separate account than the one you use for everyday spending can be a lifesaver when your HVAC system goes out or you go to the emergency room and don’t want to use a high-interest credit card to cover it. costs.
And if it seems impossible to create an emergency fund—or a rainy day account—we’re here to tell you that it can be done, and it doesn’t have to be as difficult as you think. While many financial experts say it’s good to have three to six months of living expenses stashed away in case of an emergency, it can take several years.
You can take it easy and start with a smaller goal, like $500, to save for unexpected expenses. Try using an online calculator, e.g this one from NerdWallet, to see what a solid emergency fund might look like for you. Whether you decide to save six weeks or six months of expenses, know that it is possible.
Here are 10 ways to make more money to build an emergency fund.
1. Stay out of restaurants (unless you work there)
When financial planner Laura K. Cook decided to switch to working from home, she knew her family would have to cut back on expenses. “That required some digging into our finances,” he says, “to make sure we weren’t wasting money on things we didn’t really care about.”
First, they cut back on eating out, she says, which made a huge difference: “We looked at our bank account for the last three months and last year and had no idea how much we were spending on food, even fast food.”
She is not alone. Americans are average spenders at $166 per person for dinner each month, according to a national survey by US Foods. And since this is an average, some families spend more while others spend less. How can you save more now? Try to eat more meals at home and watch your discretionary spending decrease.
2. Ask for a raise
When it comes to how much women earn, we still earn far less than our male counterparts. Additionally, research shows that women tend to have a harder time asking for more money at work.
A 2024 Indeed study of 14,500 women found that more than half of women worldwide they never asked for a raise. Read it again. It doesn’t have to be: You miss 100% of the shots you don’t take. So, if it’s been a few years – or never – since the last one asked for a raiseconsider your case.
Need more convincing? There is some good news from a new Indeed study. About 43% of respondents said they asked for a raise. And within that group, three out of four received raises, according to the report. No matter how you look at it, those are great odds.
3. Ask for extra shifts or overtime
If you still can’t bring yourself to ask for more money in the form of a raise, there are other creative ways to earn more at the job you already have. Those who work in healthcare (and other fields) could let their manager know that they are available for extra shifts or extra hours if they are not yet paid.
In many hospitals and senior centers, night workers earn more than day workers. If you have the ability to pull a graveyard shift, you can use the extra money to put into emergency savings.
Accordingly, make sure your supervisor knows you want to earn more and ask them for any suggestions on how to increase your income, such as adding certifications to your skills. Letting your boss know about your willingness to invest more of yourself in the company could potentially open more doors than you expected.
4. Selectively sell clothing (and other items).
If you’ve tried this before without much success, you may not have come across the right online websites or consignment stores in your area. Sarah Sprague Gerber, a financial planner and coach who founded Momentum Financial Planning, has seen some of her clients successfully make a fortune just by raiding their closets.
“One of the easiest ways to make more money in a short period of time is to identify items in your closet that you haven’t worn in a long time (or maybe never)… and sell them to places like Poshmark,” she says. Other reputable places to sell gently used clothing include thredUP and RealReal for high-end items.
You can also do a quick online search mail order stores in your area and visit the ones that appeal to you and your personal style. Find out what the split is – many places pay you 50% of what the items sell for and keep the rest for overhead – then move on.
And you don’t have to stop at the closet. Search your home for things you no longer use or could live without, including kitchen utensils and furniture. Take pictures of the items in a well-lit location without distracting clutter, then list everything on a site like Facebook Marketplace.
5. Turn your hobby into a side hustle or business
America has become a nation that prospers gig economy. That said, it pays to tread carefully into the side hustle to avoid burnout or failure. So before you set up a Facebook page for your new babysitting business, take a few hours (or even a few days) to think about what really brings you joy and what you love to do – and you could potentially see yourself doing it for a longer period of time.
There are other things to consider. “Before you find a good option, it’s helpful to know what your goals are to get more money,” says Gerber, a financial coach. “Do you need money soon?” Are you able to make time to build another source of income? What are the unique possibilities for you to do?’
Once you’ve come up with a solid idea or two, check with your local chamber of commerce if you’re planning to open a business or provide services in your community. They have tools that can help new entrepreneurs thrive. If you are going to start online side hustleresearch whether there is a need for the services you plan to offer.
6. Sale of gold and silver
You could have a small fortune sitting in your jewelry box or dresser drawer right now to help build a cash reserve for financial emergencies. If you have broken necklaces or chains, monogrammed jewelry that you never wear, or gifts that just aren’t to your taste, collect it all and bring it to a reputable jeweler. Call ahead to make an appointment and determine the rules for which they accept precious metals. (For example, they may not take anything under 14k gold.)
Once your pieces are appraised, the store representative can offer you an estimate of what the jewelry is worth and how much they will pay you for it. You usually get about 50% of the value. It is important to remember that the value of gold and silver changes daily, so consider this before selling.
A few years ago, I made over $550 selling a gold watch, some silver snake chains, and some single gold earrings that were lost to my friends. I used the money to fund my holiday shopping that season, but it would have been a decent amount to put toward vacation savings or unexpected expenses.
7. Cancel your subscription
Of course, there are the obvious things you can cut back on here—like a gym membership, one of your five streaming services, or a satellite radio subscription you barely listen to. A good way to remind yourself of what you may have signed up for but aren’t using is to set aside an hour or so to review your last three bank statements and credit card bills.
“Specifically, look at automatic drafts from your checking account and credit cards,” says Cook. “Cancel any services you don’t use or services that you don’t feel are improving your quality of life.”
If you’ve transitioned to working from home or want to, your priorities may have changed as well, she explains, noting, “You may be paying for services that no longer align with your values or your ultimate goal of working. From home .”
8. Hide your credit cards from yourself
We Americans love our credit cards – and it shows. The Federal Reserve reported that the average American family’s credit card debt was hovering around $6,120 In last years. Combine that with high interest rates for new lines of credit (eg 28% or more) and you have a recipe for long-term debt.
Still, we’re not asking you to get rid of those little pieces of plastic entirely; just pull them out of your wallet (virtual or real) and store them in a safe place, such as a cabinet safe or the back of a drawer.
Financial experts often advise clients to live within their means, which means not buying anything they can’t afford with their weekly or monthly earnings.
If you have a credit card balance—like millions of Americans—it’s a good idea to stop spending on your credit cards and make a plan to pay them off, starting with the card with the highest balance. Your future self will thank you!
9. Automate your savings
There’s a reason why 401(k)s are a proven way to help people save for retirement. Often this is because you never see the money. If you work for a company with a 401(k) or other savings plan, the funds are usually routed from your check to a separate account before you ever see them.
The same strategy can make you a more successful saver. Here’s what to do: If you bank online, go to your account and set up an automatic transfer to withdraw $10 or $20 per paycheck and move it to a separate savings or money market account. This can be a regular savings account, but it must be separate from the checking account you use for other household expenses. If you set it and forget it, someone using recurring transfers to withdraw $10 per week will have $100 in 10 weeks or $520 at the end of 12 months. That’s enough money to cover groceries, utilities, car repairs or other necessary expenses.
10. Track your “non-spends” and save them
One way to “find” extra money to save is to track your “non-spending,” says financial coach Gerber. What is no spending? He says these are the things you think about spending money on, but end up choosing not to.
An example from life? “If you’ve been thinking about throwing your husband a big birthday party,” says Gerber, “but then you find out he really just wants some alone time, you can take that $300 (or $30, or $3,000!) and put it away to save. target as an emergency fund.”
In theory, he explains, “The money will come out of your pocket anyway, so you shouldn’t miss it if you transfer it from checking to savings instead. I’ve helped many clients follow this approach and do various spending exercises along these lines, and it’s always surprising what they find and start to notice.”
Bottom Line
Whatever you want take on a side hustle or stand up and ask for a raise at work, there are plenty of creative ways to cut expenses and earn more to build your emergency savings account. Remember, saving doesn’t have to be hard. You can automate this process with online banking, cut back on restaurant visits, and watch your emergency fund grow.
