The biggest thing keeping us in debt is the unexpected. Many of us are not prepared when something happens that requires us to come up with money on the spot. That is when we end up reaching for credit cards and getting further into debt. Trying to budget for every single expense you could possibly have would help, but so would creating an emergency savings fund.

An emergency savings fund will be the money you use when the unexpected happens, such as needing to buy a new car tire. These need to be absolute needs and not that you saw an item while shopping that you absolutely love. Generaly, you should have 6 months of expenses saved. If you don’t have anything don’t let that number intimidate you. Start with a small goal to work towards and build up from there. A popular number to aim for your first month is $1000.00. It may seem like a large number but you can do it!

I’m sure we have all seen the 52-week savings challenge or something similar. Have you ever looked at it and wondered how people came up with money every week to save up? Below are some ideas you can do now to help you build up your savings.

Open a Seperate Savings Account

The first thing you will want to do is open a separate savings account. Pick one that is not at your current bank. The time it takes for money to transfer between outside banks will help you not be able to spend it on a whim.

Also, pick a savings account that has a higher interest rate than most. This will also help you save extra money every month by gaining interest. I personally like to use Capital One 365. There are no bank fees nor minimums to open an account. The interest rate is higher than my standard savings account.

Spare Change

Do you use cash? There are two ways you can build up your savings by using cash daily. The first one I have heard many people use is to save every $5.00 bill you get back in return. If you had a purchase that came to $15.00 and you paid with a $20, you would stash away the $5.00 in your savings.

To some, the $5.00 every time has an impact on their budget when they account for every dollar. If this is the case, you can start by keeping your loose change from using cash. Those quarters and pennies can add up really fast. I keep my change in my wallet and at the end of the week, it is all emptied into a jar. At the end of the month, I take my change to the bank to see how much I saved.

Tax Refund

We are in tax season. Many individuals are already making their shopping list to use their refund on. However, why not use this opportunity to build up your savings. It will do you better than a new tv. Plus, this will give you an opportunity to be able to save a larger amount all at once.

Work Extra Hours/ Bonuses

Do you have an opportunity at your current job to work more hours? Say that you normally work a 35-hour week. If you start working 40 hours, take the extra money on your check and put it into your savings. You are used to only the 35 hours pay already. This same concept applies if you are lucky enough to earn bonuses as well. You are not expecting this money so put it to better use by placing it into your savings.

Leftovers

If your family is anything like mine, leftovers go into the fridge to just be forgotten. Not only is this a waste of money but it is a waste of my time. Seriously, why am I cooking when I am tired from work and there is perfectly good food in the fridge? Now I make it a habit to even list leftovers in my meal plan for the week. Every week one day is designated to eating leftovers. Not only is it saving you money, but it is also saving you time!

Meal Plan

Speaking of leftovers, creating a meal plan will also help you save money. Try to create a meal plan around the items you already have on hand. If your pantry and freezer are bare, take the time to create your meal plan around the groceries advertisement or circulars for the week. You can also incorporate meatless Mondays, where you have dinners with little to no meat. Meat is usually the most expensive thing in our grocery budget. Plan out your meals for the week and write them down. Create your shopping list based on this meal plan. This will also help you only buy the things you need.

Grocery List/ Meal Plan

Always go to the store prepared. If you have an idea of what you need but not an actual list, I promise you will walk out spending more money than you should have. Always have a list and always stick to it.

Even better than having a list is using grocery pick up. My absolute pet peeve is hearing people say it is lazy. We all use grocery pick up for different reasons, and not having to take your kids out of the car and into the store is the best reason. But the second-best reason? It will save you so much money on your grocery budget.

Many different stores offer this service, but the basic concept is you shop on their site and place your items in your cart. You select a date and time to pick up and they bring the groceries out to your car. No more impulse buying and you have purchased just what you need.

Also, a plus- you know the amount you are spending as you’re building your cart. Perhaps you have a $50 grocery budget but after adding some snacks to your cart you are at $54.00. You have the opportunity to evaluate your cart and see if you can get below your total back to your budget amount.

Become Crazy Frugal

Maybe you don’t see where you can get any extra money from. Your budget is already beyond tight and you need every penny. Perhaps then, it’s time to get a little extreme and become frugal. Look for ways to save money. Find cheap meals to eat for the month. Find ways to lower your bills and cut any spending down drastically.

Make some Money

There are so many opportunities to make extra money. One option is the traditional second job you can get. Some less traditional jobs like driving for Door Dash, Lyft, and Uber Eats are also available and a little more flexible with your schedule. You can declutter your house and sell items on Varage Sale or Craigslist. You can use apps to make money on the shopping you are already doing like Ebates and Ibotta. Check out this post for more details on making money while shopping.

No Spend Month

One way to add to your savings is to incorporate a no spend month. Decide which month you want to start and commit to not spending any extra money. Do your homework and create a plan before you start. Take this moment to do an inventory of your pantry and freezer. Think of meals and create a meal plan with the foods you have on hand.

A no spend month is basically a commitment to yourself that you will not spend any money beyond your budget for essential needs. What I mean by this is, you should have a grocery budget and a gas budget. Besides these two categories, you should not be spending any extra money. And no, your morning coffee run does not fall under groceries.

Ideally, you will want to try and spend less in your grocery budget as well. This is a perfect opportunity to shop your freezer and pantry.

Does a month seem too long? You can try a no spend week but really try to push yourself for a full month. You will find in the end how surprising your spending may have been. Compare your no spend month to the previous month. Look and reflect what you spent your money on that could have gone into your saving instead.

A Learning Lesson

The purpose of the no spend month is to save money of course, but it is also a learning experience. It will help you see your spending habits and even evaluate why you make the choices you do. If you end up spending money don’t beat yourself up. Keep trying until you are successful with a full month.

Take this challenge one step further by figuring how much you would have spent (look at your average spending habits) and move that money into your savings account. You would have spent it anyways and you don’t want to end up thinking you have extra money to spend in the following month.

Are you Excited?

I hope that some of these ideas will help you start to build your emergency savings. Look at it as a challenege, make it a game to see how much you can save. Feel free to share with me what has helped you and perhaps what doesn’t. Are there other ways you have incorporated to build your savings?