savings

5 ways to grow an emergency fund

Take it slow
Take it slow

"Rome wasn't built in a day, and neither is an emergency fund," Gallegos says. "Any action you can take to establish an emergency fund will do you good. If you transfer $10 to a savings account each week, you'll have $500 in a year."

Don't be afraid to start with a small amount of savings each month, but try to increase it whenever possible.

"When you pay off a credit card with a $50 monthly payment, increase your savings by that $50," says Gallegos. "With the same outflow you have today, you'll be paying yourself."

When you get a tax refund or commission check, add it to your fund, he says. And gradually boost your savings by selling items you don't need on eBay, holding a yard sale or putting change into a jar every evening.

"Save rather than blow your excess money," Gallegos says. "By stashing the extra, in addition to your regular predetermined amount from your budget, you'll see your savings soar."

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Ask Dr. Don

How to cash aunt's savings bonds

Dear Senior Living Adviser, I have the power of attorney for my aunt who has dementia and lives in a memory care home. She has about $30,000 in Series EE savings bonds. She is rapidly going through her savings paying for... Read more

advertisement
Partner Center
advertisement

Connect with us