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Your washing machine. Your car. Your front tooth.
If any of those broke right now, would you be able to get it fixed immediately? Or would you have to walk around with a gap in your smile for months until you could get the money together?
If you can’t afford to pay to fix it today, you’re not alone. According to a 2020 Bankrate survey, only 41% of Americans could cover a financial emergency with savings. Even worse? These types of emergencies happen to 28% of people — and the average unexpected expense is about $3,500, the survey says.
That’s why it’s so important to have an emergency fund. Don’t know how to get there? Having a budget (that you actually stick to) can help you get there. Here’s one budgeting strategy we recommend, and four other tips that can help you keep your expenses in line.
1. The 50/30/20 Budgeting Rule
The 50/30/20 rule is one of the simplest budgeting methods out there, which is why you’ve probably heard us talk about it before if you’re a regular TPH reader. There are no fancy spreadsheets or pricy apps to download (unless you want to), and it’s very straightforward.
Here’s how it shakes out: 50% of your monthly take home income goes to your essentials — your rent, your groceries, your minimum debt payments, and other necessities. 30% of your cash goes to the fun stuff, and 20% is dedicated to your financial goals. That could be paying more than the minimum on your debts or adding to your investments. And it definitely includes building up your emergency fund!
7 Ways to Make Money if You Hate People
Do you avoid people too? In the past, there was almost no way around working with people if you wanted to earn a living, but things have changed.
Our team has compiled a list of creative ways you can fatten your bank account this month, without having to put up with people.
Enough small talk. Here are some ways to earn extra cash, without all of the social stuff.
If you take a look at your budget and realized you don’t have enough leftover to contribute to your emergency fund, here are a few ways to help balance your budget:
2. Cut More Than $600 From One Of Your Must-Have Bills
Here’s the thing: your current car insurance company is probably overcharging you. But don’t waste your time hopping around to different insurance companies looking for a better deal.
Use a website called EverQuote to see all your options at once.
EverQuote is the largest online marketplace for insurance in the US, so you’ll get the top options from more than 175 different carriers handed right to you.
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Take a couple of minutes to answer some questions about yourself and your driving record. With this information, EverQuote will be able to give you the top recommendations for car insurance. In just a few minutes, you could save up to $610 a year.
3.Add $225 to Your Wallet While Watching the News
It’s been a historic year in the news, and we’re all constantly refreshing for the latest updates. You probably know more than one news junkie who fancies themselves a constitutional scholar or a foreign policy expert.
That might not be the best news for your dinner conversations, but it’s great news for your wallet. By signing up for a free account with InboxDollars, you could add up to $225 a month to your pocket. They’ll present you with short surveys to choose from every day, which you can fill out while you watch tonight’s broadcast.
You just have to answer honestly, and InboxDollars will continue to pay you every month. This might sound too good to be true, but it’s already paid its users more than $56 million.
It takes about one minute to sign up and start getting paid while you watch the news.
4. Ask This Website to Pay Your Credit Card Bill This Month
Just by paying the minimum amount on your credit cards, you are extending the life of your debt exponentially — not to mention the hundreds (or thousands) of dollars you’re wasting on interest payments. You could be using that money to beef up your emergency savings, instead.
The truth is, your credit card company is happy to let you pay just the minimum every month. It’s getting rich by ripping you off with high interest rates — some up to nearly 30%. But a website called AmOne wants to help.
If you owe your credit card companies $100,000 or less, AmOne will match you with a low-interest loan you can use to pay off every single one of your balances.
The benefit? You’ll be left with one bill to pay each month. And because personal loans have lower interest rates (AmOne rates start at 6.40% APR), you’ll get out of debt that much faster. Plus: No credit card payment this month.
AmOne keeps your information confidential and secure, which is probably why after 20 years in business, it still has an A+ rating with the Better Business Bureau.
It takes two minutes to see if you qualify for up to $50,000 online. You do need to give AmOne a real phone number in order to qualify, but don’t worry — they won’t spam you with phone calls.
5. Get a Side Gig And Make More Money
Let’s face it — if your monthly income is less than what your monthly expenses are (and you’ve run out of things to cut), you need more money.
Well, we all could use more money. And by earning a little bit extra each month, we could make sure we’re never taken by surprise when an ER visit tries to drain our savings.
Luckily, earning money has never been easier with the rise of the “Gig Economy”. Here are 31 simple ways to make money online. Which one could you do to pad your emergency savings?
The 8 Best Ways to Earn a Passive Income in 2023
You’ve probably heard the term passive income. It sounds appealing right?
According to the definition of passive, it would mean you’re earning income without participating or having to do anything at all. Free money? Sign me up!
If you’re interested in establishing a flow of passive income, here’s a guide to understanding the term and getting started.
Check it out here!
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