Rainy Day Savings: How to Keep $500 in the Bank

Everyone should make it a point to keep at least $500 in the bank in case of emergencies. With just a little determination, you can build a little cushion and be prepared whenever the need should arise.

Reach $500 with these 3 Steps

1. Begin by depositing an extra $100 in your checking account. Not only will you have additional funds for emergencies, but your chances of bouncing a check have just been reduced.

2. Your next step is to start making small deposits into your savings account until you’ve reached $400.

3. Then do not touch the money unless you have a real emergency.

Your action plan for saving up the initial $500:

• You might be getting a tax refund. You may be able to build up a nice cushion worth several hundred dollars just from your refund check. Even if you’re not getting a refund, you have some other options that could lead to quick cash.
• You can go a whole month without buying a thing. Impossible, you say? Many consumers have are actually surprised how much they’ve saved after buying only necessities for a single month. Keep in mind that cutting back on shopping and not going out for lunch and dinner can result in considerable savings.
• Sell household items. Take advantage of online auction or classified websites to sell books, CDs, DVDs, automotive parts, furniture, collectibles and more.
• Put your change in a large container. In a year (and sometimes less), you’ll save hundreds of dollars.
• Review your bills. Your regular bills can be a good source of cutting expenses. Do you really need that premium channel, extra cost phone options or magazine subscription: Have a high-speed Internet provider? You can switch to an Internet calling service that could result in extra savings. Then, after you’ve saved some money, funnel the extra funds into your bank account.
• Save automatically. By allowing a certain amount of money to be transferred from your checking account into your savings, you’ll have the decision to save made for you automatically.

When is it really an emergency?

Many people differ on what constitutes an emergency, which is an occurrence that puts your livelihood or your family’s safety in jeopardy. Your computer breaking is not an emergency, but you’re a/c in July definitely is. An expense that occurs on a regular basis is not an emergency – such as a bill you pay each month.