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  1. Buy a Piggy Bank

Although it sounds very simple, I believe this is the most effective of all the methods. I have a practice…. Every night after coming home from Office, I just throw all the coins that are in my pocket and wallet into the piggy bank. I also make it a point that, I never count those coins before throwing them in. I let the Piggy Bank accumulate and when it is filled to the brim, I transfer that money to a fixed deposit. Thus Coin by Coin, an emergency fund gets built in the Old School way.

  1. Sell away the Scraps

Another simple yet powerful idea is to collect all those money that comes out of selling the scraps. All those newspapers in your home may fetch you a paltry sum. But in dire necessity, even that paltry sum may seem a Mammoth total. Hence selling away all those unwanted and surplus items in your home and transferring to our Piggy Bank will serve the purpose.

  1. Pooling in the Extra Cash

Most of the salaried persons enjoy pay hikes such as bonuses, increments, incentives, etc.  One way of saving for a rainy day is to allocate a portion of that extra cash that follows into the pocket into an emergency fund. Even 5% of that money would serve the purpose. That way there wouldn’t be any need to sacrifice the party or long pending trip which was waiting for that Extra Money.

  1. Reserving a percentage of the salary

The same 5% rule applies here too. Every month, just transfer 5% of your salary into an emergency fund with no questions asked. That amount may even go into a high liquidity investment option such as a Mutual Fund, so that a handsome return would be an added benefit.

  1. The Power of Bargaining

One nice strategy to use is whatever amount that gets saved by the prowess of your bargaining shall go into the emergency fund. After all, you have earned it. The more you bargain, hefty will our fund become.

  1. Rounding Off the Balances

Be it the Balance Sheet or any other Account Statement, the Total Amount can be rounded off the nearest number and whatever sum remains may be transferred to the Emergency Fund.

P.S:

  • One Rule about the Emergency Fund is that the Liquidity has to be high in the fund. Only then, the saved sum can come in handy for an emergency.
  • Photo by Steve Johnson on Unsplash