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Saving

It’s important to save for a rainy day. In this guide, we give you ideas on where to put an emergency fund and how much you should save.

where to put an emergency fund

The world of personal finance is rife with oversimplified platitudes and one-size-fits-all advice. No where is this more evidenced than in the often-repeated advice about emergency funds.

Typical advice says that you should save three to six months’ worth of expenses in a high-yield savings account. Some financial gurus opt for eight months’ worth of expenses saved up, while others say four is enough.

Still others advocate for starting with a couple thousand dollars and beefing up the fund after you’ve paid off all debts.

How much you should have in an emergency fund and where you should keep it is more personal than this. In some situations, a smaller emergency fund may work just fine. And for some people, a low-interest home equity line of credit can be a reasonable emergency fund. In other situations, having this much cash on hand is a good plan.

But high-yield savings accounts are really providing barely enough to keep up with inflation. Stashing a ton of cash in a savings account may not be the best option. In this case, you might consider having a broader, more diverse emergency plan. This can help you make it through true emergencies without losing out on the interest your money could be earning.

If you’ve never thought through what you’d do in a financial emergency, consider creating an emergency plan that includes the following components:

1. “Mattress cash” stash

Clearly, I don’t actually mean hiding cash in your mattress, necessarily. But it’s not a bad idea to stash a small amount of cash around your home. If your ATM network is down for some reason and you need cash, you can get what’s in your home. I’m not talking about keeping a ton of cash in your home. This should be maybe two or three hundred dollars.

After all, in the case of a truly catastrophic world event, that cash won’t have much value, anyway. So we’re not really planning for that type of situation. This is more the type of situation where you’ve lost your wallet and had to cancel your debit and credit cards. You’re waiting on replacements, but you need to put gas in the car and groceries in the pantry right now. In this situation, you could make a couple hundred dollars work for a week or two.

2. Liquid account

Unless there’s a worldwide banking catastrophe, you should be able to access the next portion of your emergency fund within one day. You might consider putting this portion of your emergency fund into a money market or high-yield savings account. The idea is to earn as much interest as possible without losing FDIC insurance and easy access to your cash.

How much should you put into this fund? It really depends. The idea is that this should be enough to get you through from a job loss to the first paycheck at a new job. Many experts recommend having one to three months’ worth of expenses in this type of account, if not more.

The key here, of  course, is that you’re saving expenses, not your actual income. If you make $4,000 per month but only have to spend $2,000 per month to meet your basic needs, you should use $2,000 as your monthly goal. So for three months’ worth of expenses, you’d only need $6,000 in savings.

Your thoughts for this portion of your emergency plan may differ, depending on your current situation. In a two-income family, for instance, you may not need as many months’ worth of savings. After all, the chances of both working adults losing their jobs at the same time are probably fairly slim. On the other hand, if your particular career suffers from an unstable job market, consider saving even more in this part of your plan.

3. Certificate of Deposit ladder

You can earn a bit more interest on your emergency savings if you use a short-term Certificate of Deposit ladder. With a CD ladder, you progressively invest in more certificates of deposit, which each have their own maturity date. As each CD matures, you can either pull out the money, penalty-free, to cover your expenses. Or you can reinvest it if you’re not in the middle of an emergency.

Combined with liquid savings, a CD ladder can be a good way to get through an emergency without losing out on slightly higher APRs. For instance, say you save three months’ worth of expenses in your liquid account. Then you create a CD ladder of three-month CDs. You’re then guaranteed to be able to tap at least one CD by the time you run out of liquid emergency fund savings. And if you need to keep pulling from the CD ladder, you can.

This way, you can take advantage of potentially higher CD rates, while avoiding penalties for withdrawing from your CDs early.

4. Investments

As you’re planning how to save for retirement, consider potential emergencies, too. In an emergency, you can withdraw your contributions (not your earnings) from a Roth IRA. Depending on your broker, these withdrawals could be free from penalties, taxes, and fees. Once the emergency has calmed down, you can contribute the withdrawals back into your Roth IRA.

You can also consider tapping into your taxable investments, if need be. This isn’t always the best option, especially if your investments are down. But if a true emergency, it can be a way to cover your expenses and potentially get some tax benefits while doing it. Remember, too, that if you sell when your investments are worth more than when they were purchases, you’ll face some tax implications. Just account for that when determining whether and how much to withdraw from your investments.

The best-case scenario is, of course, to have enough in liquid and intermediate savings not to have to tap your investments in an emergency. But understanding how this could potentially work is a good idea when you’re planning how and how much to invest.

One more item of note along these lines: do not rely on a 401(k) loan during an emergency. If you should lose your job, the loan would come due immediately. That just makes an already tenuous situation even more risky.

5. Credit

Using credit in an emergency can be a slippery slope. But it can be used wisely as part of a broader emergency plan.

For instance, if you’re currently paying hefty interest on credit cards, you should put your extra cash into paying them down rather than saving for an emergency. But you’ll want to be sure you don’t go back into high-interest debt if an emergency does arise. In this case, saving a couple thousand dollars to start can be helpful. This can help you get through unexpected car repairs or other smaller emergencies.

Then consider keeping open a home equity line of credit to use for larger emergencies. With today’s lower interest rates, you could finance a longer-term emergency without paying interest through the nose.

Another option is to keep your eyes open for credit cards with an introductory 0% APR on purchases. These cards are widely available to those with good credit. And you can often get one at the drop of a hat. This could get you access to a line of credit in an emergency. Hopefully the introductory offer would give you enough time to get through the emergency and then repay the balance before the introductory period ended. Luckily, credit card issuers are now offering these introductory periods for anywhere from 12 to 18 months, and sometimes more.

6. A bare bones budget

On an everyday, non-emergency basis, you probably have lots of little–or even large–expenses that you could cut out in a true emergency. It’s a good idea to know ahead of time what this would look like. Take a look at your spending for the past three months, and determine which expenses you could have cut with ease and which you could have cut with a bit of work or sacrifice.

This might include things like your cable subscription, other entertainment-related expenses, any dining out expenses, extravagant grocery-related expenses, and more. See just how much you could have cut out of your budget, and put that on paper. That’s your bare bones budget. If you had absolutely no money coming in, that’s how much you’d need to survive.

The exercise of writing down your bare bones budget is helpful for a couple of reasons:

  1. It helps you determine your emergency savings goals. Remember, saving for an emergency is about saving for essential expenses, not your normal, I-have-a-good-income spending. Writing down your bare minimum budget lets you see what you actually need to save for emergencies.
  2. It’ll give you a reference point in an emergency. When an emergency hits, you’ll be too busy looking for your next job or putting out the proverbial financial fires to think too much about basics like budgeting. So having this bare bones budget written down ahead of time can be helpful. You can use this document to know which services to cancel right away and how to budget until the emergency is over.
  3. You’ll see how much extra you’re really spending. Finally, writing down your bare bones budget is great even if you aren’t in the middle of an emergency. It’ll help you see just how much of your daily spending is truly necessary versus extra. While you don’t need to live on this strict budget all the time, it’s a good way to gauge if your spending is reasonable or getting out of control.

7. Stock up on essentials

I’m not advocating becoming a doomsday prepper, but having a stocked pantry and medicine cabinet can make emergencies easier to get through. And it’s not that hard to plan ahead. Just add a few extra cans of beans or other non-perishables to your cart each time you go to the grocery store. Shop in bulk for paper goods like toilet paper and paper towel. And keep your medicine cabinet well-stocked with first aid supplies, over-the-counter medicines, and such. And if you’re on any prescriptions, be sure to keep them up-to-date and refilled as often as possible.

These essentials may not get you through a several month long period of unemployment. But if you can get through the first month or two without having to buy more than milk and eggs from the grocery store, your emergency savings will go a long way. This is just a simple step to take over time so that you can cut expenses at the drop of a hat.

When you think about your emergency plan as more of a comprehensive plan, you’ll feel more prepared for potential emergencies. You’ll also know how to save for emergencies without your savings being eaten away by today’s still-low interest rates. Do you have a broader emergency plan? What does it look like?

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50 Ways to build an emergency fund. Tips, tricks and strategies on saving more for emergencies and where to keep your rainy day money.

emergency fund

There’s a reason Dave Ramsey’s famous Baby Step #1 is to build an emergency fund. It helps people get on track for becoming financially independent.

I don’t agree with everything Ramsey says. But having at least a small emergency fund to begin with can be helpful. A basic emergency fund is a place where you keep cash for true emergencies, such as job loss or a broken-down car that would prevent you from going to work.

Ultimately, you’ll want enough cash in your emergency fund to cover all of your necessary expenses for a 3 to 6 month period. But any amount of money saved is a start.

Beyond the basics, I suggest at least five separate components to a complete emergency plan. Getting to that point presents challenges for many people. When you’re starting out, it can be difficult to assemble even the basics for eventual financial freedom.

Banking Deal: Earn 1.55% APY on an FDIC-insured savings account at CIT Bank.

But even if you’re hard-pressed for cash, you can still start an emergency fund. Here are fifty different ways to start saving today:

  1. Open a high-yield online savings account with as little as one dollar. This gives you somewhere to put your emergency funds, which is essential. And you might as well protect against inflation while you’re at it.
  2. Sign up for direct deposit. When you do, have part of your paycheck–as little as a few bucks–deposited right into your new online savings account. You won’t spend it if it doesn’t hit your checking account in the first place!
  3. Empty your pocket change into a jar every night. Then, put the change into your savings account every couple of months. Don’t spend much in cash? Try an app like Acorns that automatically rounds up your transactions to save your virtual change for you.
  4. Add to your jar every time you swear. Trying to break a bad habit? Tax yourself every time you do it. You’ll break your habit more quickly and save money while you’re at it.
  5. Have a garage sale. Selling off things you no longer want or need can get you started on the road to saving. Plus, it’s nice to de-clutter the house once in a while!
  6. Sell on Craigslist or Facebook groups. Bigger-ticket items may net a better price sold individually on Craigslist or your local Facebook garage sale group.
  7. Whenever you purchase groceries with a coupon, deposit your savings into the bank. This works especially well if you aren’t already in the habit of using coupons. Whenever you cut a few bucks off of your typical grocery bill, save the extra. You’ll never even miss it.
  8. Downgrade your cell phone or cable serviceThe best ways to save are options that let you keep saving money, month after month. Just be sure you put the money saved into your emergency fund every month!
  9. Bring your own lunch to the office. Say you typically spend $10 for lunch at work, but you can make a salad at home for $2.50. Every day you bring your lunch to work, put $7.50 into your emergency fund.
  10. Ask for a raise. Pull together your work performance stats for the past year or two. Then, get together with your supervisor, and lobby for a raise.
  11. Save your raise. If you do get a raise, don’t let lifestyle inflation eat it all up. Instead, have it automatically deposited to your savings account rather than your checking account.
  12. Drink soda rather than alcohol when you’re dining out. Buying even one drink at dinner can set you back $5 or more. Every time you downgrade your drink, throw the money you’ve saved into your emergency fund.
  13. Switch to store-brand food items. Get a feel for how much this cuts from your weekly grocery budget. Then save the extra cash.
  14. Switch to generic medication. Many times, doctors don’t mention generics, but you can switch to them if you ask. Again, keep track of how much you’ve saved, and add it to your bank account.
  15. Cut back or eliminate your addiction to smoking. Smoking has up-front costs, of course. But you’ll also save money on healthcare over time if you quit.
  16. Be aware of your ECRD FactorWhat are you spending money on that you could eliminate or cut back on? Find those areas, and then leverage them to save more money.
  17. Start a side gigWhatever your side gig, put any profit from it directly into your savings account.
  18. Use a cash back rewards credit card. Instead of putting the rewards towards extra spending, put them into your savings account.
  19. Save gas by not driving faster than 65 miles per hour. You can also save gas and be easier on your car by not braking too hard and by following other safe driving practices.
  20. Stop using credit cards if you pay interest. If you have trouble not carrying a balance, just stop using your credit cards.
  21. Cancel your Netflix subscription. Actually, look at all of the subscriptions you’re charged for monthly or annually–Netflix, Hulu, Amazon Prime, Spotify, etc. If you don’t use them enough to justify the costs, just cancel them.
  22. Do your own yard work. If you’re currently paying someone to do your yard work, start doing it yourself. You’ll get a workout and save some money.
  23. Visit the library rather than your local bookstore. Bookstores are great. But you can save so much money on reading material by renting it from the local library!
  24. Stock up on non-perishable groceries when they are on sale. Having a well-stocked pantry is essential to keeping your grocery spending lean. Get familiar with your local stores’ sales cycles, and stock up when you can.
  25. Cancel magazine subscriptions. If you have some must-read magazines, subscribing is better than paying more at the newsstand. But if you’re not reading those magazines cover to cover every month, cancel them.
  26. Reuse or repair things instead of replacing them. Then, take the money that you saved by not purchasing new, and put it into your savings account.
  27. Delay vacations until your emergency fund is complete. This is a tough one. But you should have at least some part of your emergency fund saved before leaving on vacation.
  28. Sign up for online bill payment if your bank offers the service for free. This will keep you from missing bills and paying late fees.
  29. Shop around to ensure all your your financial accounts do not charge you extraneous fees. In this day and age, you shouldn’t pay for the privilege of using a checking or savings account!
  30. Always know how much you have in the bank so your accounts will never be overdrawn. Money management and budgeting apps are a great option for helping your manage this.
  31. Use public transportation rather than driving when possible. Alternatively, consider biking to work.
  32. Work a few extra hours at your day job. If you’re paid hourly, you can earn extra to put into savings. If you’re salaried, impressing the bosses could net you a raise sooner rather than later.
  33. Call your insurance provider and ask for an updated quote. In face, you should shop around for insurance once a year. You never know when you’ll get a better offer!
  34. Crawl the web for abandoned and unclaimed property owed to youYou never know what you’ll find. Put any unclaimed cash straight into savings.
  35. If you travel, join AAA; the discounts will often pay for the membership fee.
  36. Cancel your gym membership. You can get a great workout at home with some free weights. And you can always get your cardio in by walking or running outdoors.
  37. Consider refinancing your mortgageIf you haven’t taken advantage of low interest rates, now is the time. You could save hundreds per month, depending on your circumstances.
  38. Cook and brew coffee at home. Cutting out a latte a day may not make you a millionaire. But cooking and brewing your coffee at home can save you a few bucks a day.
  39. Find opportunities for one-time income. Don’t have time for an ongoing side gig? Consider doing one-time income-earning opportunities like babysitting or house sitting.
  40. Check out your memberships. Are you a member of a professional club you don’t get much use out of? A local country club? Consider cutting out memberships that don’t really benefit you.
  41. Save your tax refund. In fact, you can have your tax refund direct deposited to your savings account.
  42. Adjust your withholding. Don’t want to wait until tax time to beef up your emergency fund? If you always get a refund, you could be having too much withheld from your paycheck. Talk to your HR department about adjusting your withholding. Then, put that extra cash from your paycheck right to your emergency fund.
  43. Stop eating out. Commit to only eating out for truly special occasions, such as birthdays. You’ll be surprised how much this could save over the course of a year.
  44. Consider a no-spend month. This Pinteresty trend is actually a great way to save money. You basically eliminate all but your essential spending for a full month. It can be an eye opening way to cut unnecessary spending long-term, too.
  45. Keep track of all of your spending. Sometimes you spend money without actually realizing it. Keeping track of all your spending, either with an app or by writing it all down, can help you pinpoint where you’re over-spending.
  46. Negotiate on everything. Whether it’s a retail store or your cable company, pretty much everything is negotiable.
  47. Share your home. Getting a roommate can really boost your savings. Or you can use Airbnb or VRBO to rent part or all of your house part-time.
  48. Save on energy. Take steps to make your home more energy efficient, and it’ll save you money month after month.
  49. Shop secondhand. Sometimes, you just have to buy stuff, whether it’s new cups to replace the ones your kids broke or a new pair of jeans. But these things don’t have to be brand new. Try shopping at online secondhand stores or your local Goodwill to save some serious cash.
  50. Celebrate milestones. Saving three to six months’ worth of expenses can take a while. So set some milestones–like your first $500 or $1,000–worth celebrating. (Just don’t blow a bunch of money on a fancy dinner out while you’re at it!)

With a goal to be financially independent, the first step is securing a cash cushion, accessible in emergencies. During this funding phase, it may be beneficial to make sacrifices that in other situations you would not make. A slight decrease in quality of life in the short term will likely outweigh long-term financial devastation when a future emergency arises.

Original published on April 14, 2008, this article was updated by the Consumerism Commentary editorial team (five of us to be precise) on November 15, 2017.

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The best high-yield online savings accounts offer strong interest rates and great customer service, making them a popular option for savers. In addition, studies show online savings accounts come with lower fees.

best online savings accounts

“High-yield” is, unfortunately, a bit of a misnomer these days. A decade ago, interest rates were 4% and 5% among select savings accounts and money market accounts. Today, the best rates are around 1%, but some banks offer rates hovering near 0%! This trend will continue until banks and credit unions need more cash from depositors.

Banking Deal: Earn 1.55% APY on an FDIC-insured savings account at CIT Bank.

Interest rates

Interest rates are important because our money shouldn’t lose purchasing power. Ideally, interest rates offered by banks should beat inflation while preserving the balance without risk. I am not aware of any bank offering a savings option with ongoing interest rates high enough to beat inflation, whether measured by the government-reported CPI-U or by any other meaningful measure of consumer prices. Nevertheless, if your savings is at a brick and mortar bank earning below 0.25% APY, choose one of the better options below.

Best Online Savings Accounts

Customer service

When evaluating customer service, there are two important factors to consider. The best banks offer all account maintenance and transfers through a professional, reliable, and easy-to-navigate website. Secondly, live customer service representatives should be knowledgeable, helpful, and available, even if customers should not have to deal with a representative frequently.

Based on my own experiences and reviews from other Consumerism Commentary readers, here are the most-recommended accounts for short-term savings. All of the listed interest rates directly below from our partners and in the table above are current, although interest rates are subject to change by the banks. Although I have nine accounts listed below the table of rates, you don’t need to have accounts with that many different banks. Choose one that fits you the best.


Synchrony Bank Savings AccountAt 1.55% APY, Synchrony Bank offers one of the highest rates available today on an FDIC-insured savings account. With no minimum balance required and no monthly service fees, it’s one of the most popular options. Click here for more details.


ally_120x60-002Ally Bank was selected by Kiplinger Magazine as the best savings account for 2009. Formerly known as GMAC Bank, Ally Bank provides an interest rate for their online savings account of 1.45% APY. Click here for more details.


EverBank has a variety of products including a high yield checking account, a money market account, and world currency CDs. All of these accounts offer top-tier interest rates. For example, first time account holders of Everbank’s Yield Pledge Money Market account earn a new account bonus rate of 1.41% for the first year. After the first year, the ongoing APY is 0.86% for account balances up to $250K. And their Yield Pledge Checking Account for first time account holders for balances up to $100,000 offers a new account bonus rate of 1.41% for the first year and the ongoing APY is a standard 1.01% APY. Click here for more details.


FNBO Direct offers no fees and no minimum balance requirement. It is the online arm of First National Bank of Omaha. FNBO has an interest rate of 1.40% APY. Click here for more details.


Discover Bank offers a solid online savings account with a fast opening process. For example, I opened my account within twenty-four hours. The current interest rate for the Discover Bank Online Savings Account is 1.50% APY. Click here for more details.


CIT Bank was founded in 1908 in St. Louis by Henry Ittleson. Throughout the 20th century CIT continued to grow in all sectors. An FDIC-insured institution, it serves consumers and small businesses with certificates of deposit, savings accounts, and custodial accounts. CIT Savings account offers 1.55% APY on all deposits.


SmartyPig currently sports one of the better interest rates you can find online at 1.20% APY. You can also convert your savings goals into gift cards and earn an additional bonus for each gift card conversion. SmartyPig is not a bank by itself. It is a goal-oriented savings vehicle, a layer, that can be compared with other savings accounts.


Click here to start saving with Capital One 360!Capital One 360 offers no fees and no minimum balance requirement. Like ING Direct before it, Capital One 360 also has a great website and excellent customer service. I’ve found that managing your money with Capital One 360 is just as easy as it was with ING DIRECT. Capital One 360 offers a current interest rate of 1.40% APY .


Barclays is a large, international bank that has been around for 300 years, and operates in over 50 different countries. Barclays offers a 1.50% APY on all deposits, with no minimum balance and no monthly fees.


HSBC Advance offers no fees and no minimum balance requirement. Formerly HSBC Direct, it entered the race with one of the highest interest rates ever available at 6% APY. HSBC Advance Online Savings Account has an interest rate of 0.05% APY for $15,000.


Lending Club Investing offers a significantly higher return than most banks. Lending Club is a social lending site where you can invest in loans issued to individuals and businesses. The most recent average net annualized return for notes by grade A to C is between 4% and 6%. These investments are not FDIC insured, but Lending Club’s higher rates may be an alternative worth considering.


What is your favorite online savings account? Share your thoughts in the comments below.

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10 Easy Ways to Save Money

This article was written by in Saving. 22 comments.

This year, I’ve spent more money than ever. I’ve been able to swing these extra expenses — including lots of fun new gadgets I’d put off buying for years — without hurting my budget. But now, I’m ready to pull back and start ramping up my savings again.

We all know that Americans are generally terrible at saving for retirement. But it turns out that we’re also pretty bad at saving in the short term, too. In fact, nearly 60% of Americans don’t even have $500 in savings. Yikes!

Here’s the reality, though: saving a bit of money doesn’t actually take much effort. I’m planning to use these ten low-effort ways to save money over the next year. Want to join?

1. Automate your savings

Chances are you already use direct deposit for your paycheck. If not, it’s time to get with the program. With direct deposit, your money goes straight to the bank. It’s more convenient for you and your employer. Plus, it lets you automate your decision-making about savings.

Instead of deciding how much to save each payday, you can set your account to automatically move money from checking to savings. Your paycheck will hit your account, and your savings will disappear from that account almost simultaneously. It’s much easier to save money that you never see in your checking account!

Even if you start by moving only $5 or $10 per paycheck to a high-yield savings account, you’ll have more saved at the end of the year than you would have otherwise.

2. Collect your excess coins

I enjoy looking through circulating coins, on the off chance that I discover a rare specimen, such as a silver quarter. No, it doesn’t happen often; most of the good stuff has been removed from circulation by other collectors or knowledgeable bank tellers.

But while I’m saving my daily change in a glass jar, I’m also saving myself from spending that money. Every so often, I roll the coins with free sleeves from the bank and take them in for deposit.

What if you don’t typically spend cash? If you usually swipe your card instead of spending cash, you may not have any loose change to save. In this case, check out apps like Qoins.

You can connect this app directly to your checking account. Each time you spend, it’ll round up to the next dollar and “save” the change from that transaction. Once you reach a certain threshold amount, the app will put that change towards a debt.

Other similar apps, such as Digit and Acorns, use this concept to sock away change in a savings account or investing account. These apps act like a virtual change jar, putting the dregs of your daily transactions towards important financial goals.

3. Use goal jars

You’ve seen those jars in country shops. They are short, wide-mouthed clay pottery or stoneware jars with cork tops.

On the outside of the jars, they are labeled using varying levels of wit. In these jars, you can set aside money you’d like to budget for “retirement,” “kids’ education,” “dreams,” or the “Harley fund.”

Again, these are a great option if you typically spend with cash. You can make them even more powerful if you dedicate certain “leftover” money to these jars.

Say you normally spend $125 for a weeks’ worth of groceries at the grocery store. One week, you get creative with meal planning and couponing and you only spend $115. Put the extra $10 — which you normally would have spent — into a goal jar.

You can do this virtually, too. More and more banks are offering free savings accounts, and some checking accounts offer unlimited free “sub-accounts.” Open several, then label them for specific goals.

Related: Variety of Savings Accounts: Where I Keep My Cash

You can split up your extra money at the end of the month to these accounts, or just throw in “saved” money whenever you can. For instance, if you usually spend $10 on your work lunch, but bring a lunch from home, toss the $7 you saved into one of your savings accounts.

4. Form a budget, but budget for fun

A budget can be the most depressing part of personal finance if you let it be. I tend to avoid budgets, but if my income fails to meet my expenses, I’ll have to reconsider this approach.

The key, though, is that budgets should be flexible. Budgeting isn’t about limiting yourself to only the most frugal spending. It’s about realizing that sometimes you have to sacrifice in one category to pay for another.

Want to eat out more? Great! Be a super frugal grocery shopper when you do eat at home. Want to travel? Awesome! You may have to give up purchasing some of those new electronic gadgets.

A budget that saves you money is usually one that has at least some “fun” spending built in. You can only seriously restrict your spending for so long before you make yourself more likely to go on a spending binge. So, make sure you write in some fun — whether that’s dining out, saving up for travel, or working on a hobby. Then, stick to it!

If you need a jump start, here are the best budgeting tools to track your money.

5. Find ways to make your hobby cheaper

Hobbies can be expensive. Just ask anyone with a Faberge egg collection! Many hobbies require materials and monetary investments, and this can really add up over time.

Just like budgeting for your “fun,” though, you should budget some money for your hobbies. Of course, moderation is key here. Try not to spend too much, especially to the detriment of the rest of your budget.

Here are some tips to help you manage that hobby spending:

  • Get good at finding your supplies on sale or secondhand. If your hobby is crafting, sign up for coupons from all the local craft stores. You can often save 50% or more on your craft materials. Into biking? Consider buying your gear secondhand to save big.
  • Figure out how to make money from your hobby. Turning your hobby into a side business is an excellent way to make money. But even if your hobby doesn’t turn a profit, selling what you create can cover most or all of the expenses associated with your hobby.
  • Make the most of what you have. It’s easy to overspend on your hobby thinking you need the next big thing. If you sew, it’s tempting to upgrade your machine every couple of years, whether you need to or not. And if you hike, adding on ever more cool gear is tempting. The truth, though, is that you can probably enjoy your hobby without these things. I’d suggest instituting at least a one or two month waiting period before you can spend on pricey hobby-related items. In that time frame, you might just find that you don’t need the upgrade after all.

6. Sell stuff online

If you were thinking of having a yard sale, think again. By selling your unwanted items online, you’ll reach a much wider audience, including more of those who appreciate what you have to offer. Plus, online buyers will often pay more because they’re looking for exactly what you have.

Luckily, you’ve got a ton of options for selling online. Don’t want to mess with shipping heavy or bulky items? Check out your local Facebook sale group to make sales locally. Or list your items on Craigslist.

For smaller items that are easier to ship, you often don’t even have to take them to the post office for shipping. You can set up a package service to pick up the item from your home after you print the label. This makes selling items on eBay and other sites easier than ever.

Some sites, such as Swap.com and Thredup, will pay you for your old, lightly-used clothing and accessories. Swap gives you a shipping label to use, and Thredup will actually send you a bag for shipping your items in.

7. Start a new hobby

Are you currently working on an expensive hobby that’s draining your money? Consider starting a new one that actually makes money.

Some hobbies are great micro businesses. Maybe yours won’t make loads of money. But even if your hobby can pay for itself, you can have your leisure for free. Here are some ideas for hobbies you can turn into extra cash:

  • Building or fixing computers: This one’s easy to turn into a money-maker. Just become the local go-to guy for fixing or customizing computers.
  • Arts and crafts: Any sort of art or craft hobby likely has a market. And these hobbies can be expensive, so it’s a good idea to try selling your wares as you make them. Again, even if you just cover the cost of your materials to start, that lets you enjoy your hobby without spending loads of extra money.
  • Gardening: You can, of course, save some money for your family by growing fruits and vegetables you’d otherwise buy. But if you’ve got an eye for planning out beautiful flower beds, too, offer your services at installing and maintaining others’ landscaping.
  • Pets: One or two pets are great, but pets get expensive. If you love to spend time with animals but can’t afford to add any more to your family, consider starting a pet-sitting or pet walking business.

8. Ask for a raise

Sometimes it’s that simple. If it’s been a while since you’ve gotten a raise, or if you’ve recently taken on more responsibility, now is the time to ask.

First, put together your list of recent accomplishments. Hard numbers will often do more than anything else to actually get you that raise. Then, set up a meeting with your supervisor to talk specifically about your raise, or what you can do to earn one if you’re not quite there yet.

Of course, if the goal is to save more money, you should know what you’re going to do with that raise ahead of time. Adding it to your paycheck is a good way to start frittering away that extra money without even knowing where it’s going.Instead, consider directing that money straight to your savings account or 401(k), before it even hits your bank account.

9. Negotiate to work from home

More and more businesses are allowing or even welcoming their employees to work from home. And working from home can help you save loads of money.

Here are just some of the expenses that you can cut back by working from home, even one or two days per week:

  • Gas and car maintenance
  • Parking, if yours is paid daily, and toll roads
  • Dry cleaning or other clothing expenses
  • Less wear and tear on your more expensive work clothes
  • Eating out for lunch, work coffees, etc.
  • Time is money — if you cut out your commute, you have more time for side hustles or hobbies, and less time with the kids in childcare.

Plus, when you work from home, you can often find time to get extra things done around the house, which is just an added bonus!

Resource: Ten Tips For Cutting Car Expenses

10. Cut back on your monthly bills

Saving on things like groceries and dining out is great. But it takes a concerted effort and planning month after month.

An easier way to save right away is to cut back on those recurring monthly bills that you barely think about paying. This includes things like car and home insurance, phone and internet bills, recurring monthly subscriptions, cable, and more.

These are the types of bills that you should price shop at least once a year. So if it’s been more than a year since you last made sure you were getting the best possible rates in these areas, take a few hours to shop around. Start by calling your current providers and asking what they can do to lower your bill; sometimes, you can get a new discount just by asking for one.

Saving on these bills will save you money month after month. Just be sure to keep a running total of how much you’re saving, and then direct that amount to your savings account each month!

Learn More About Cutting the Cord

How else are you saving? Let us know in the comments.

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