If you want to make more emergency savings in 2023, these tips will help

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When it comes to financial resolutions for 2023, at the top of many people’s lists is: building an emergency fund.

A A recent survey from Personal Capital 31% of respondents want to increase their emergency savings, with 15% topping other goals such as buying a car; saving to buy a home, 9%; or conducting a wedding, 8%.

Setting aside savings for unexpected expenses like medical bills or car repairs can help people avoid high-interest debt and keep track of long-term goals like retirement savings.

In fact, not having an emergency fund could be one of the biggest financial mistakes you can make, says personal finance expert Sue Orman said recently.

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“The majority of Americans, in my opinion, don’t have the money today to pay for their day-to-day expenses,” Orman said.

Studies consistently show that individuals find it difficult to come up with cash to cover unexpected expenses. $1,000 Or even $400.

If you want to boost your emergency savings in 2023, these tips will help you get started.

1. Reduce your monthly bills

According to certified financial planner Ted Jenkin, CEO of Atlanta-based Oxygen Financial and a member of the CNBC FA Council, you can find big savings by reevaluating your day-to-day expenses.

Jenkin co-authored a book called21 Day Budget Cleanse,” recommends people take a toxic-type approach to their household budgets.

Take a look at the 21 biggest bills you have — if you have too many — and try to shop around or change them.

How to build emergency savings

For example, take your bundled internet, phone and cable bill. Ask your provider if there is a better package or rate available. Also explore other options available through other companies.

“Most people don’t really take the time to see where they’re spending more and measure the difference,” Jenkin said.

2. Reevaluate your credit card habits

Prices were high this holiday season, prompting consumers to turn to credit cards and take on more debt. LendingTree survey Recently discovered.

That’s now “disturbing,” as interest rates on those loans are poised to continue climbing, according to Matt Schulz, chief credit analyst at LendingTree.

By asking for a lower interest rate, you can get back how much it will take to pay off those loans, LendingTree says was discovered.

It may also help to get better rates elsewhere – with a 0% interest balance transfer credit card or personal loan.

Also, see how you can turn the rewards you’ve accumulated into additional funds, Jenkin said.

Many people have perks they don’t use, like points that can help lower your credit card bill.

“It paid off,” Jenkin said.

Sharon Epperson's money will go into 2023

3. Look for higher rates on your money

As interest rates rise, that’s good news for the money you’re earning on your money.

Online savings accounts and certificates of deposit or CDs are offered Higher interest rates For more than a decade.

If your emergency fund generally falls short of the three to six months of expenses recommended by experts, accessing your money quickly should be your first priority, says Greg McBride, chief financial analyst at Bankrate.com.

In that case, online savings accounts may work well. Even taking out a small amount of money per week can add up over time, McBride said.

4. Sell what you don’t use

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If you haven’t used something in a year — except for family heirlooms or holiday decorations — it’s time to sell it, Jenkin said.

If you haven’t worn a shirt in a year, for example, you can drop it off at a website. Boshmark. You can sell your unused electronics on sites like Decluttr Or Facebook, Jenkin said.

“There are many, many apps and websites to sell your stuff,” Jenkin said.

For example, if you’re not willing to part with an item like an extra car forever, you can rent it online instead. Duro.

5. Pick up a side hustle

Making more money doesn’t have to stop you from selling your products; You can sell your skills, Jenkin said.

Websites like Fiverr Allow you to list your services so you can generate extra cash.

“If you have the hustle, the talent or the talent, try to earn extra income to build a cash balance,” Jenkin said.


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