savings

5 ways to grow an emergency fund

Treat it like a bill
Treat it like a bill © iStock

Treat it like a bill

Establish a monthly savings goal and make it part of your regular budget. Consider setting up an automatic monthly transfer, just as you would with the electric bill or fitness club membership, to ensure the money is saved each month.

"The forced savings should feel like a bill-pay transaction that is done on the same day of every month," Smith says.

Paying yourself first through a direct deposit from your paycheck into your emergency account will help you build that fund steadily. But make sure you've created a balanced budget so that you save the appropriate amount. Otherwise, you'll be pulling money out of savings regularly to pay bills, defeating the purpose.

advertisement

tap
Sweepstakes
Enter to win a $10,000 money makeover

Take a photo or video of one of your financial goals using #mastermoney on Twitter, Instagram, Vine, Tumblr or upload directly to our page.

Enter Bankrate's Money Makeover Contest!
Show Bankrate's community sharing policy
          Connect with us
advertisement
advertisement
5 ways to grow an emergency fund
advertisement

Connect with us