How to Rebuild Your Emergency Savings


The financial experts echo words of having an emergency savings of at least 6 months of take home pay, and most analysts believe that one year is preferable. When unexpected expenditures occur from time to time, the money can be spent in the blink of an eye to replace the van that finally blew a gasket, or shovel the sewage that backed up in the house and ruined most of the contents, floors, and walls. Insurance adjustors are quick to say that these types of disasters are not typically covered with homeowners insurance, and the repairs will be out of pocket expenses for the owners. Once again, the emergency savings has been put to good use with the purchase of a reliable automobile or the refurbished home after the untimely sewage eruption. Now begins the tedious process of rebuilding a sizable emergency fund for the next disaster that may be lurking.

Average families living on fixed incomes maintain their lifestyles relying on a need and not a want basis. People living this type of streamline lifestyle are able to build a sizable bank account and also cover necessary living expenses. It is possible to categorize household expenses into a two column spreadsheet system, which are the ‘Want” and the “Need” categories. Each person involved with spending household money is a part of the revamping of the style of spending until a predetermined emergency savings amount has been met.

Eating out is usually the first luxury spending that is dissolved until the emergency fund is moving in the right direction. Lunches can be made and the money saved can be earmarked for the savings. Choose a different means of transportation through mass transit when available, walking, and riding bikes. Eliminating the number of cars is another doable option when reducing monthly spending and increasing monthly savings is the primary goal.

If the number one goal is to rebuild your emergency savings, rethinking where you shop for food and clothing can make a huge change in the amount of money that can be saved. Gently used clothes that are still in style can be found when shopping thrift stores and consignment shops. Save on fresh vegetables, juices, cleaning products, and other household items by joining a food coop with some neighbors and friends. Enjoy eating healthy co op meals for a fraction of what you would spend in the local grocery store. Entertain on a shoe string by renting movies instead of paying for expensive movie tickets and snacks.

Reduce your carbon footprint and think ‘Green’, and help the environment by recycling aluminum cans, paper, and plastic at your local recycling center. Test and see if you have a green thumb by planting a few easy to grow vegetables in pots on your porch or in your back yard. Saving money can be fun when the entire family gets on board and experiences the personal pride in building an emergency savings fund.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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