How to Restock Your Emergency Fund After a Crisis

 

Rachel Slifka

 

Have you had to dip into your emergency fund recently? No worries – that’s what it’s there for. Unfortunately, after working so hard to stock your emergency fund, it can feel demoralizing to have to start over.

 

But if you’ve built an emergency fund once, you can easily do it again. Here is how you can quickly restock your emergency fund after a crisis.

 

Take on Additional Work

 

To restock your emergency fund quickly, you may need to find additional sources of income. For you, this may mean working overtime, picking up some babysitting or lawn care gigs, or starting a second shift as a server or working in retail. You’ll want a gig that can provide quick, hard cash.

 

Additional work is the fastest way to rebuild your emergency fund after a crisis. While being mindful of your spending certainly helps, there is a limit to how much you can cut back. You’ll find that you can make substantially more progress with an additional income stream.

 

If you have an established side hustle, like freelance writing or blogging, now is the perfect time to pick up more work. If you don’t already have an established side hustle, you will want to earn money quickly. Consider finding paid gigs or a part-time job to earn some cash quickly. Sites like Rover, Care, and local Facebook pages can help you find local gigs fast.

 

Slash Your Spending

 

Another way to restock your emergency fund quickly is to cut your spending as much as possible. At the end of the month, any money you have left over can go straight to your rainy day fund.

 

Slashing your spending isn’t necessarily fun, but it is an effective way to rebuild your savings. To get started, look at your budget and determine what is a necessary expense, and what is a luxury expense. Commit to cutting out any unnecessary expenses until your emergency fund is back up to par. For most people, this means cutting out restaurants, nights on the town, shopping, and other expensive activities.

 

Sell Items in Your Home

 

Selling household items is one of my favorite ways to restock my emergency fund when I need to. Most of us have much more than we need, and our households are cluttered with items we no longer use. Instead of holding onto it, sell what you no longer need for cash.

 

For clothing, you can sell it on apps like Poshmark, or consign it at a local shop. You can sell furniture, electronics, and small appliances on Craigslist, LetGo, and OfferUp. All of these resources make it easy to sell.

 

When you’re selling, be sure to post photos of the item. From my experience, listings without a photo rarely sell. Further, always keep safety in mind when meeting up with someone to exchange an item. Nowadays, law enforcement has set up “safe zones,” which are public spaces with cameras. They are encouraging buyers and sellers to meet at one of these locations. To find a safe zone near you, check out their website.

 

Automate Your Savings

 

Most bank accounts allow you to create an automatic savings plan. This can be an enormous help when trying to restock your emergency fund.

 

For instance, my bank account allows me to create automatic savings goals. I can enter in how much I want to save and when I want to have it saved by. It will tell me how much I need to save each month to reach my goal. I can have money automatically taken out of my checking account and put into my emergency fund to meet this goal. Once I set my goal, my savings account does the work for me. It couldn’t be easier.

 

Saving money automatically is the easiest way to meet your financial goals. Whether you’re rebuilding your emergency fund, saving for a down payment on a home, or socking money away for a vacation, automatic savings makes it easy.

 

Pinch Pennies

 

When restocking your emergency fund, pinching pennies might not be the most effective method, but it certainly doesn’t hurt. You’d be amazed at how much money you can find when you’re looking for it.

 

Consider all of the small sources of cash you may have access to. Redeeming gift cards, rewards points, or using coupons are all small things you can do to help your financial situation. Don’t forget to clean out your pockets, purses, and cash in your loose change. It all adds up, and it may be money you simply forgot you had.

 

While all of these individual methods can help you rebuild your emergency fund, they are most effective when used together. By focusing on making more money, slashing your spending, and automating your savings, you will be able to rebuild your emergency fund in no time.