Last Updated on March 13, 2025 by Janell
We all know we should have an emergency fund. It’s one of those responsible, adult things that sounds great in theory but often feels impossible in practice, mainly because life is just so expensive, and there’s always something to buy when you wanted to put the money into savings.
The fact is that it’s true – life is expensive. Bills don’t wait, and unexpected expenses seem to pop up just when you think you’re finally getting ahead. But there is something else you need to remember – building a solid financial safety net doesn’t have to be stressful. With a few smart moves and a little creativity, you can grow your emergency fund without feeling like you’re depriving yourself of all fun. We promise. And with that in mind, keep reading to find out more.
Start Small
One of the biggest mistakes people make when trying to save is thinking they need to stash away huge amounts right away. That’s overwhelming and generally not possible anyway. So instead, start small. Even setting aside a tiny amount a week adds up faster than you’d think.
The trick to make sure you actually do it and don’t spend the money first is to automate it. You’ll need to set up a direct debit so a small amount moves into your savings account before you even see it, and then you won’t miss what you don’t have in your main account. And over time those small amounts turn into a financial cushion that actually makes a difference.
Sell What You Don’t Need
If you have extra stuff lying around, why not turn it into extra cash? Unused gadgets, clothes with the tags still on, or that exercise bike that’s now just a very expensive clothes rack… there’s probably money hiding in your home and you’re just so used to all that stuff being there that you’ve not really thought about it. And if you’re looking for a big boost to your savings, what about selling your Camry if you don’t need it as much as you used to or you’ve got other options? Maybe you’ve moved somewhere walkable, switched to public transport, or just don’t drive as often. Whatever it is, it could be a money-maker.
What’s great about selling your old stuff is that not only will you make some money, but you’ll also clear your home and declutter it, and that’s good for your mental health, so it’s a good thing to do no matter how you look at it.
Make Your Money Work Harder
Something else to think about is that once you start building your emergency fund, you don’t have to just let it just sit there earning next to nothing. In fact, it makes a lot of sense to find a great savings account before you even begin to put money aside, and then you’ll know you’re making as much as you can.
So when you start your search, look for a high-interest savings account or an easy-access ISA that offers a better return. Even a small interest rate boost makes a big difference over time, and you’ll end up with more than you would have otherwise.