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::April Edition::
Welcome to the April edition of Financial Friday, Oklahoma Money Matters' online personal finance question-and-answer forum. This month, we’re answering a question about saving for emergencies.
I’m living paycheck to paycheck. How can I save for emergencies if I can barely pay my bills?
Great question, thank you! The onset of April showers reminds us how important it is to have a “Rainy Day” fund. This economic climate has left many families feeling overwhelmed with expenses, with no wiggle room in their budgets. Now, more than ever, it is important to examine our finances with a magnifying glass and try our best to find ways to save for those unexpected events. There’s nothing worse than trying to process the emotional toll of a serious illness, natural disaster or the unexpected loss of a job while also facing financial uncertainty.
Look at some ways you can create and supplement emergency funds:
- Scrutinize your routines.Daily rituals help us through each day and add predictability. If your ritual includes regular trips to your favorite cafe, fast food restaurant or movie theater, those seemingly small costs can accumulate. For example, if you spend $3.50 every day for your favorite latte, that will add up to about $100 a month. Try socking some of that money away in your emergency fund!
- Add to your income. Make the most of the coming season. Many businesses look for employees to supplement the influx of summer travelers. Start checking the want ads or perusing shopping centers and apply now. If you’re already employed, consider requesting additional hours for overtime pay if allowed. Put that extra income in your emergency fund.
- Funds come in different forms. Think outside the box when you receive cash and gift cards throughout the year. If you receive cash for your birthday, put the money in your emergency fund instead of spending it. If you typically receive gift cards from friends and family, request they come from grocery or retail stores you frequent regularly. There are also mall kiosks and online gift card resellers that offer consumers cash for certain gift cards. Do your research and make sure you aren’t falling for a scam. Most companies do not pay you 100% of the card value. Also, don’t forget to check out the expiration dates on any gift cards received. Regardless of how you intend to use the card, don’t wait until it’s too late.
Saving for an emergency can certainly be harder when you’re living paycheck to paycheck. If you look closely at your finances, however, you could be able to find a little cash here and there that can be redirected to your emergency savings. If you have money-saving tips you'd like to share, email us at OklahomaMoneyMatters@ocap.org or visit Ask OKMM to submit a personal finance question for a future edition of Financial Friday. Thanks for participating in Financial Friday. Remember, there is always time to take control of your financial future!
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The OKMM Team
Financial Friday is a service of Oklahoma Money Matters, the financial literacy initiative of the Oklahoma College Assistance Program, a division of the Oklahoma State Regents for Higher Education.
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