Living on the Financial Brink?
So many of us are now living so close to the edge: a medical emergency, job loss, or even a cut in hours at work could lead to bankruptcy or foreclosure. But if everything is okay right now, and you're just a bit tight each month, maybe you should start taking steps to create a buffer. An emergency fund can create peace of mind and prevent minor emergencies from becoming major ones.
Start Small
Much financial advice says to pay yourself first: put money into a savings account automatically, before paying bills or allocating spending money. But for some, where can this money come from? Here are a few ways to save your pennies:
Save on Food
Whenever we make soup, we set two containers of it in the freezer for my husband to take for lunch. He can take soup, make a sandwich, and throw in an apple or some carrot sticks. This makes it pleasant and easy for him to pack lunches. On days when he might not have time to get to a microwave, I make him wraps, a hard-boiled egg, or an extra sandwich. His lunch bag has a smaller compartment in the bottom, where he keeps a couple of granola bars or other snacks that last for a while, in case he is hungry in the afternoon.
We buy in bulk, splitting most things with my husband's sister. Because we both have small kitchens, neither of us can store the bulk size of everything - unless we wanted to live off of oats and canned beans for a month.
Save on Utilities
We don't have a dishwasher, so I wash dishes by hand in a large bowl in the sink. This uses less water when I don't have very many dishes. We also save water by not running it while we brush our teeth.
Save electricity: head outside in the evening instead of staying in and watching TV. Attend a free lecture at the community center, play catch in the park, or walk around the block and admire people's gardens.
Save on Entertainment
If you check your city's website, there are often free events going on: cultural festivals, art shows, sandcastle competitions. Last year, we attended a winter solstice festival. There was music, art, and activities for kids.
Squeeze a Little More Out of Everything
- Get more mileage out of your gas tank by checking your tires' air pressure and staying within the speed limit
- Hang your towels up after you shower. Towels can be reused several times before they have to go into the laundry. This can also apply to jeans.
- Add a bit more water to your juice, if you make juice from frozen concentrate
- Pay credit card bills a couple of days earlier than you normally do. If you are running a balance, some credit card companies compound your interest daily: paying your bill a couple of days early can save you a few cents.
Most of the above will only save you a few cents. The idea is that the cents add up to dollars: saving a few cents on electricity, a few cents each month on water, a couple of dollars on entertainment, a few cents here and there will add up over time, making this a mostly painless way to create a buffer between you and an emergency.
