You may need a 12-month emergency fund-this is how to get it

After Covid caused severe damage to our economy, the seemingly reasonable goal of the emergency fund-three to six months of expenditure-no longer felt that way.

Financial expert Suze Orman believes that after seeing millions of people spend their savings last year, those with stable jobs should aim for a 12-month emergency fund. If you think that saving so much money in the past sounds ridiculous, maybe this view has changed your mind.

TPH senior writer Nicole Dow has thoroughly studied the pros and cons of a one-year emergency fund, including who needs it and who does not need it.

She also explained in detail how to determine what your emergency fund should look like. Tip: This is not the 12 months of your take-home pay, but the basic budget for you and your family to survive four seasons.

You can use the following methods to calculate how much emergency fund should be deposited-and how to take out extra cash.

1. Determine your basic budget

If you lose your job, how long will it take you to find another job? It depends on your industry, but the average time is about five months (this is before the pandemic breaks out). You hope it will be less, but it may even be more, so you need to be prepared.

This means detailing a basic budget, which you can adjust as needed. Keep only the necessities and cut the life you don’t have. Food, shelter, medical expenses, utility bills, and minimum debt payments can be left; subscription services, additional debt payments, and extracurricular activities are suspended.

You can also check if your utility company and bank can help or reduce fees, and check with your mortgage company about tolerance options.

Once you have created this essentials-only budget, multiply it by 12. This is what your 12-month emergency fund savings goal should be.

2. Activate your emergency savings fund in a high-yield account and earn 16 times the average interest

If you do not have an emergency fund account, please find one. It’s not safe to put cash under a mattress or in a sock drawer, and it won’t bring you any interest—but it’s much less than a regular savings account.

But an account desire Allows you to earn up to 16 times the average interest on funds in your account. Every time you use a debit card, it will earn you up to 5% in return.

Not too shabby!

Enter your email address here Get a free Aspiration Spend and Save account. After you confirm your email, securely link your bank account so they can start helping you get extra cash. Your money is FDIC insured, they use military-grade encryption, which is a nerd talk of “it’s completely safe”.

3. Reduce bills immediately to help save money for later use

Now you can reduce some bills without sacrificing anything.

By reducing these monthly payments, you can save more money immediately with If you need to use an emergency fund, there is no need to worry. Win-win.

Start with your car insurance. When was the last time you checked car insurance prices?

You should buy your selection every six months or so-it can save you some big money. However, let us be realistic. This may not be the first thing you think of when you wake up. But it doesn’t have to be so.

A website called Insurance Net Make it very easy to compare car insurance prices. All you have to do is enter your zip code and your age, and it will display your options.

Using, people can save an average of $489 a year.

Yes it is.It only takes a few minutes to deposit $500 directly into your emergency fund See your options.

4. You can get your money back every time you go to the grocery store

You know, when you go shopping at the grocery store, using coupons is a guaranteed way to save more money-but it’s very time consuming. Instead, you may be rewarded just for buying something you have already purchased. Without editing, you can still add more money to the emergency fund every month.

A free app called Receive award Simply purchase toilet paper and more than 250 other items at the grocery store to receive gift card rewards.

It works as follows: After downloading the app, just take a photo of the receipt showing that you purchased an item from one of the brands listed in Fetch. For your efforts, you will get gift cards from places like Amazon or Walmart.

you could Download the free Fetch Rewards app here Start getting free gift cards. There are already more than one million people owning it, so they must make a difference…

5. Just drop a rabbit hole on your phone and earn up to $225 for your emergency fund

We have all been there. You sit down and relax on your phone at the end of the day, and suddenly two hours later, you are back to the strange part of YouTube. How did I get here?

But you don’t need to feel guilty anymore. Research companies will actually pay you to enter these video rabbit holes.

By registering for a free account, you can add up to $225 to your pocket per month Inbox dollars. They will show you short video clips to choose from every day, and then ask you some questions about them.

You only need to answer truthfully and InboxDollars will continue to pay you monthly. This sounds too good to be true, but it has paid users more than $60 million.

Registration and registration takes about one minute Start getting paid Go out for your night area.

6. See if you overpaid

Think about how much you overpaid… If someone told you before you swiped your card, how much you could have saved in the emergency fund.

This is exactly this Free service do.

Just add it to your browser for free, and before you check out, it will check other websites, including Walmart, eBay, and others, to see if your products have cheaper prices. In addition, you can get coupon codes, set price drop reminders, and even view the price history of items.

Suppose you want to buy a new TV, and suppose you have found the best price. Here, you will see a pop-up window letting you know if the TV can be bought at a cheaper price elsewhere. If there are any coupon codes available, they will also be automatically applied to your order.

Last year, this saved people $160 million.

You can get started in just a few clicks See if you pay too much online.

When you use the provided link to get the extension, Capital One Shopping will compensate us.

7. Stop making payments to your credit card company

Your credit card company is cheating you with crazy interest rates (some as high as 36%) to make you pay extra money each month, which may be used for your emergency savings.

But there is a website called slim Shady Want to help.

If you owe your credit card company $50,000 or less, AmOne will match you with a low-interest loan, which you can use to repay every balance you have.

benefit? You will need to pay a bill every month.And because the interest rate of personal loans is low (AmOne interest rate starts from 3.49% annual interest rate), you will get out of debt that Much faster. Also: No credit card payment this month.

You don’t need a perfect credit score to get a loan-comparing your choices will not affect your score at all. In addition, AmOne will ensure the confidentiality and security of your information, which may be why it still gets an A+ rating from the Better Business Bureau after 20 years of operation.

It takes less than a minute and only 10 questions to complete See which loans you are eligible for — You don’t even need to enter your social security number. You do need to give AmOne a real phone number to qualify, but don’t worry-they will not send you spam over the phone.

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About the Author: Agnes Zang