Easy Ways to Build up a $1,000 Emergency Fund | Richard Banks & Associates, P.C.

Do you have $1,000 saved up for a rainy day? If the answer is no, don’t feel bad—only 39 percent of Americans can answer yes to that question.

Building up a $1,000 emergency fund may seem unrealistic in your current financial state, but our team at Richard Banks & Associates, P.C. has a few tips and tricks to share with you that will make it an easier goal to accomplish.

According to Bankrate, 39 percent of those surveyed would pay for an emergency expense with savings, while 19 percent said they would pay for it with a credit card. Bankrate also found that those making less than $30,000 a year were twice as likely to use some form of borrowing rather than savings, while those making over $50,000 were more likely to use cash.

Wouldn’t it be nice to have a fund built up, ready for any unfortunate expenses that could pop up? Of course it would! Consider the $1,000 emergency fund the first step to getting your finances back on track. Here are three tips that can get you started in the right direction:

1. Evaluate your expenses. When is the last time you took a good look at what you’re spending every month? It may take up a moment of your time, but go through and start looking for ways to save. Check out new car insurance rates, see if you can find a cheaper Internet or cable plan, get rid of that gym membership you pay for and never use. Take those savings and put them in your emergency savings fund.

2. Take advantage of automatic banking. Many banks and jobs will give you the chance to say just where you want that paycheck to go, so begin to portion out what you can afford and have it directly deposited into your savings account. By doing this, you’ll be eliminating the temptation of spending what you really should be saving.

3. Look into a high-yield savings account. Talk to your bank about higher interest savings accounts or consider options like Synchrony, Discover Bank or CIT Bank. This way, your savings can earn a little bit extra while it sits waiting for that rainy day.

At Richard Banks & Associates, we know that you’re doing everything in your power to right your financial situation and commend your efforts! Remember, we’re here to help you through the ins and outs of bankruptcy if that is deemed your best option.