7 Ways to Sock Away Emergency Cash

Another way to accomplish the same goal is to finish paying off a recurring bill such as a credit card or car payment. Instead of using this newly freed up money to buy new things, keep paying it, but this time to yourself earmarked for your emergency fund.

Set Up an Account

When setting up an emergency fund, you will want to open up a separate account so that the emergency fund money isn't mixed in with your regular spending money since mixing makes it much easier to spend the emergency fund money on nonemergency things.

Online banks often offer money promotions for opening accounts, which can get your emergency fund started just for setting it up.

Pay Yourself for Things You Use

One of the easiest ways to always have an emergency fund available is to learn to pay yourself to use things you already own.

Getting into this habit ensures you have a mini emergency fund for all the things you use on a regular basis and puts you in a position of never having to buy things on credit again.

Embrace one of the above ways to begin the emergency fund, and give yourself a bit of breathing room.