Increase Emergency Fund Balances Through Additional Income Sources
Building an emergency fund increases financial security and reduces the dependence on short-term loans, such as credit cards, to pay for unexpected expenses. Finding extra money each week to fund an emergency fund can be a challenge with the demands of limited income and ongoing monthly bills. One effective way to build emergency fund balances quickly is through additional revenue sources which you can direct to savings.
Income streams can come from a variety of sources, some of which provide a second paycheck from a job, while others provide intermittent funds on a temporary basis.
Temporary or irregular sources of income most often come from side jobs or seasonal work. It can be as simple as dog sitting for friends and neighbors, or using an acquired skill such as creating an online website, plumbing work, or building furniture. You could also sign up on websites offering payment for micro gigs which include a wide range of jobs from a virtual assistant to designing logos.
For more regular work seek employment at companies who have an imbalance in demand and require seasonal employees. Work could include jobs at theme parks, providing summer childcare, local stadiums, or convention centers.
Regular gigs in the form of part-time jobs take many forms. With the right skills, you could tutor students through an agency in the evening, or find a second job working the evening or weekend shift at a local retail store or restaurant. Many part-time jobs offer flexible hours which allow you to work around your current employment schedule and family obligations.
Working an additional 20 hours a month, at $10 an hour, can give you an extra $200 a month for your emergency fund. Working 10 hours a week can add up to $400 a month, increasing your financial security quickly.