Building an emergency fund

Perhaps you've intended to start an emergency fund. The barrier has simply been a lack of funds leftover at the end of the month to put aside.

To break the paycheck-to-paycheck cycle that's leaving your checking account balance low, examine your everyday expenses and look for ways you could slash unnecessary spending. Start by writing down all your expenses for a month. At the end of the month you'll likely see several money drains you could plug.

Once you've identified the cause of your dwindling account balance, consider these tips for slashing your spending and freeing up cash for your emergency fund. Bank any money you save in a high-yield savings account.

28 ways to save for an emergency fund

1. Get back to basics. 15. Compare health plans. 2. Call 411 for free. 16. Get a break on car insurance. 3. Stop going the distance. 17. Keep a good credit rating. 4. Examine cell phone usage. 18. Get rid of PMI. 5. Nix the huge tax refund. 19. Adjust your auto coverage. 6. Pay in cash. 20. Look out for new restaurants. 7. Live one pay raise behind. 21. Hunt for discounts. 8. Shop smarter. 22. Cut back on your caffeine costs. 9. Minimize tailoring & dry cleaning. 23. Bring your own bottle. 10. Turn unworn clothes into money. 24. Have fun staying home. 11. Plan your errands. 25. Read not, waste not. 12. Buy retread tires. 26. Evaluate your cable package. 13. Take it easy. 27 Rent movies economically. 14. Analyze homeowners coverage. 28. Visit the library.

Cut down on phone extras.
1. Get back to basics. Cancel all the extra services on your landline that you don't need, such as call waiting, caller ID, call forwarding and three-way calling. Do the same with your cell phone, and cut frills such as text messaging and picture mail. After all, the point of the telephone is simply to make calls.