Building an emergency savings fund or "rainy day" fund is an excellent idea and a step in the right direction. Many individuals don't contemplate this approach to saving money and regret it later on in life. So, indeed you have made a positive decision.
To answer the query, building an emergency savings fund requires focus and determination. It is about your mindset and remaining strict with your approach towards saving money. Once your mind is in the right place, the rest becomes easy. Here are a few proven tips, which will ensure your emergency savings fund is bulging in no time.
Work On Small Percentages
Break the process down into percentages as this can make it easier to do . The purpose of this process is to save a specific amount of money, which is doable in your mind based on an established percentage. An example of this would be a person earning $1000 a week putting aside 10% of this. So, $100 goes to the fund. If your pay goes up, you stick to the same rule. You still put in 10%. You will be surprised how easy things become.
Set the percentage in accordance with your expenditures. Lower it, if you find the percentage to be taxing, if not impossible. As long as you are putting something inside, you are headed down the right path.
This fund is set up for an 'emergency' and if you have one coming up every week, it is fine to keep tapping into it. However, in most cases you are not going to face such a situation every week. Therefore, learn to be consistent and you will start to accumulate funds.
Reduce Unnecessary Expenses
There should never come a point where you are earning a good living and still unable to save a penny. You have to sit down and cut unnecessary expenses. Focus on your needs, not your wants. Things like a new plasma TV or going shopping for clothes is not necessary. Take out these expenses and save the money.
This should assist you in your goals. Hope you are able to save a lot of money using these tips!