Recently I came upon a statistic that said roughly 47% of Americans would not be able to cover a $400 emergency. I’m going to guess that number is higher for millennials than older generations. A $400 emergency could come from so many avenues: vet bills, hospital bill, car trouble, job loss, etc. Having an emergency/rainy day fund is always important to have, just in case life throws you a curveball.
Saving money is hard, so below are 5 ways to easily save money in order to build/add to your emergency fund.
#1 Price Match
Thanks to Amazon, and other online retailers it is incredibly easy to compare prices before you make a purchase. Most stores honor these competitive prices as well. A few months back when I was looking for a birthday present I went to Toys R Us to look at Lego sets in person. The setI decided on was about $45 at the store. However, the same set was only $27 online through WalMart. Upon checkout I showed this to the cashier, and I got the gift then and there at a fraction of the price for using my phone for all of 20 seconds.
Whenever you are making a sizable purchase, do yourself a favor and run it through google first. This could save you a ton of money. The only store I know that does not price match to online stores is GNC.
#2) Check your car insurance rate
If it’s been awhile since you compared car insurance rates, this could be a good time. This is especially true if you have liability coverage, which protects you about the same from company to company. However, pricing can be greatly different. Checking against other car insurance companies can save you hundreds of dollars a year. For me, Progressive works out to be the cheapest.
#3) Cut down on eating out
Eating and drinking out gets expensive. If you can cut down your habit by only 50 percent you could save hundreds of dollars a month (depending on how much you spend now). Another benefit to preparing your own meals/beverages besides saving money is that you know what are in your meals, and it can fit your dietary preferences.
#4) Spend more time outside
This could walking/biking to work, or to various other activities. This could be spending an afternoon hiking, or in a park. This could be a trip to the beach, or the lake. Being outside is free, and a relaxing way to spend time.
#5) Use The 24 hour rule
The 24 hour rule is giving yourself at least 24 hours to decide on each nonessential purchase. It’s designed to curb impulsive/expensive purchases. Thanks to online shopping you can still add items to your online cart, and then after fully thinking decide if you still want to make the purchase. Additionally, this will allow you to price match, or find a better product all together.