The Ultimate Guide To Building An Emergency Fund In 2024
You may not have saved enough during 2023, but you can begin 2024 by planning to start an emergency fund. Saving should be an integral part of your financial life, but you aren't the only one who doesn't contribute as much as they should.
With that in mind, we're giving you the six steps to building your emergency pot this coming year, so you won't have to worry about a financial crisis occurring without a buffer. Keep reading to discover the six easy steps to create your 2024 emergency fund.
6 Steps To Building Your Emergency Fund In 2024
1. Set A Savings Goal
In other words, how much do you want to save? Professionals recommend having at least three months' living expenses as your emergency fund. However, that's quite a lofty goal to start with. So, we recommend aiming for $500 at first. As you become more used to saving and hit your $500 target, you can increase it. That way, you won't be discouraged early on.
2. Know Your Expenses
With the goal set, it's time to focus on your expenses.
Round up your credit card statements, bank statements, and other financial papers to see how much you spend monthly. Include everything from groceries to eating out to insurance to subscriptions to rent. The key is to be honest. If you spend it, you need to count it.
Take your expenses away from your earnings to get your disposable income. Then, you can save a fraction (or all) of your disposable amount.
3. Set Up A Separate Account For The Fund
This doesn't have to be complicated — the simpler, the better. Granted, there are many account types, but a simple savings account with a bank you already use is enough to get you started. Generally speaking, you'll be able to find an account that has a low minimum deposit amount and zero fees.
4. Automate Savings
Automating your savings is the best way to build up your emergency fund. You can set it and forget it, allowing you to save without the hassle. Removing manual work is a surefire way to increase your chance of success.
5. Review And Update
Regularly check your expenses and savings amount to see if you need to increase or decrease it. Finding a seamless way to monitor your progress offers gratification and encouragement to continue your journey toward a successful emergency fund.
6. Stick With The Plan
Building emergency funds takes time, so you'll need to practice patience. There's no need to worry about your account balance being lower than you want; you're making significant progress if it's above $0!
What If An Emergency Arises Before You've Saved Enough?
Sometimes, you will need more emergency funds to cover a crisis. This could happen for several reasons — either you've just started saving, or the situation costs more than you've already saved. Either way, hope isn't lost.
At Georgia Auto Pawn, Inc., we lend up to $15,000 through title pawns. You don't need a good credit score; you need to own a vehicle outright and follow the simple process below:
- Contact your local Georgia Auto Pawn Inc. store by phone or use our easy online inquiry form to send your information directly to the location of your choice.
- One of our representatives will give you a call back to talk about the process and confirm your information. They will explain everything you need to qualify and answer questions about title pawns.
- After the phone call, you can head to the location you've chosen to meet or head to your local store with your identification, vehicle, and lien-free title.
- Our representative will conduct a rapid inspection of your vehicle to establish the amount of cash you can qualify for.
- If you qualify for the title pawn, our friendly representative will ask you to complete the paperwork with their help. You must sign a few documents to confirm your agreement with the terms.
- Finally, you will receive the money you qualify for that same day or the following business day.
Get A Title Pawn from Georgia Auto Pawn, Inc. Now!
Setting a goal, knowing your expenses, making a savings habit, automating contributions, and sticking with the plan are the main steps you need to take to build your emergency fund in 2024. Whether this is your first time creating a fund or rebuilding after spending it, our guide will ensure you fill it efficiently.
And if you find yourself in a financial emergency before you've managed to create a proper fund, you can turn to an auto pawn. As we explained above, the process is straightforward. Just give us a call or complete the online form to kickstart everything.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.