It sounds daunting: adding $500 to your emergency fund in a single month. But by combining both small and not-so-small changes, even households on a tight budget can do it.
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Try these ideas from financial experts to add padding to your cash cushion over the next 30 days.
Also see seven low-effort ways to start building an emergency fund.
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Pick Up a Side Hustle
The easiest way to inject an extra $500 into your emergency savings is simply to earn an extra $500.
Sure, you could drive for Lyft or pick up freelance work, but there are thousands of other easy gigs out there you’ve never considered. “We hire part-time receptionists who work from home,” said Lou Haverty of Faster Answering. “We only handle incoming calls, mostly customers looking to make appointments. It’s an easy and flexible way to earn an extra $500 a month by working seven to nine hours per week.”
Check Out: We’re a Family of 5 Living on One Salary: Here’s Our Monthly Budget
Ask Your Employer About ESAs
Starting in 2024, employers can offer a new tax-advantaged account benefit: emergency savings accounts (ESAs).
“Ask your employer if they offer a workplace emergency savings account. These are a new type of employer benefit where employees can save automatically out of their paycheck. In most cases, employers even add extra money to the account, often between $100 to $1,000 per employee per year,” said Devin Miller, the CEO of SecureSave, an ESA administrator.
They offer similar tax benefits to Roth accounts. You pay taxes on contributions, but the money grows tax-free and you pay no taxes on withdrawals.
Ban Restaurant Food for 30 Days
Many people go out to eat frequently and spend a lot of money at restaurants. And don’t forget about delivery fees or tips.
Commit to making every single meal at home for the next month. No take out, no delivery, no work lunches out at a deli or fast-food joint.
Want to save even more money? Ban snacks, desserts and beverages other than water and homemade coffee or tea. Sodas, alcohol, chips, treats — these extras can cost you money and worsen your health, so try a 30-day sprint without them. You’ll be shocked at the improvements to both your wallet and your health.
Take On the Pantry Challenge
Most of us lose track of all the food in our pantry and freezer.
Try halting all new grocery purchases until you’ve eaten every single food item in your freezer and pantry. You may need a supplemental ingredient here or there, but you can save hundreds of dollars simply by suspending grocery runs while you eat all the food piled up in your pantry.
Pause All Subscriptions for a Month
Likewise, nearly all of us pay for monthly subscriptions we’ve forgotten about.
These include video streaming services like Netflix, audio services like Spotify, gym memberships, magazine subscriptions and subscription boxes like beauty items. Pause every single one for a month to save hundreds of dollars.
Who knows? Maybe your family will bond over a board game you forgot you had rather than watching TV.
Once you hit your $500 savings goal, you can always resume any subscriptions that you truly struggled without.
Clean Out Your House and Storage Unit
Austin Kilgore, consumer analyst with Achieve, noted that we all have plenty of “stuff” that we can sell to both clean our homes and add some quick cash.
“Clean out all of your drawers, closets, basements, attics and garages. Learn to sell what you can online, or through a garage sale. Do you have a storage unit? Organize, sell, donate or throw out the contents you can’t use, and close it to save even more money,” he said.
Go All-Cash for a Month
Most people don’t realize just how much they spend each day on small, forgettable purchases.
Try locking away your credit card in a drawer and deleting it from all apps and websites. For one month, try buying everything you need with physical cash. If you absolutely must buy something online, pay with your debit card.
“Start keeping receipts and a spending journal or log,” Kilgore said. “This way, you can find your spending leaks and identify areas you can cut back.”
Ask About Utility Assistance
Depending on your income, you may qualify for subsidies on utility bills.
“Check with your utility companies to see if they offer assistance programs or reduced rates based on income,” said George Carrillo, CEO of the Hispanic Construction Council. “Many people don’t realize these options exist.”
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This article originally appeared on GOBankingRates.com: 8 Ideas To Add $500 to Your Emergency Fund in a Month (Even on a Tight Budget)
