100 Ways to Improve 1% – Part 3
This post will be another part of my series “100 Ways to Improve 1%”.
If you are on the FIRE journey, then chances are you have already modified the “big-ticket” items when it comes to your expenses, this is looking at exploring some more fine-tuning touches you can make to your everyday life.
This list has been derived from the people at ChooseFI
Below are the links to the other sections that are part of this series:
Part 1 – Exercise and Personal Growth
Part 2 – Debt
Part 3 – Emergency Fund Savings
Part 4 – Home Expenses
Part 5 – Transportation Expenses
Part 6 – Groceries and Dining Out
Part 7 – Shopping and Services
Part 8 – Internet, Phone and Entertainment
Part 9 – Travel and Sightseeing
Part 10 – Earning Extra Money
Part 11 – Investing and Retirement Planning
Part 12 – Job and Career
Part 3 – Emergency Fund Savings
14) Save Your Tax Refund
If you are able to put in enough deductions to retain a sizeable tax refund, then do not waste this nice sum of money. It is important to remember that it is not a bonus amount, it is money that you worked hard to earn, that you are just getting back after donating it to the ATO for a little while. This sum of money can make a significant dent in saving for your emergency fund.
15) Set up a Separate Emergency Fund Savings Account
Seeing a large pool of money sitting in a frequently used bank account can be incredibly tempting, especially for someone who is working hard to improve their financial habits. Setting up an account which you do not see regularly (potentially with a different bank) can help avoid dipping into it, out of sight out of mind?
16) Set Up Automatic Transfers
To really force yourself to save up for an emergency fund (or any sort of saving goal really), setting up an automatic transfer is one way where, once it is set up, then doing nothing is helping you work towards your goal. You actively have to work harder to either stop the transfer, or transfer the money back, to stop the savings being accumulated.
17) Ensure reasonable goals are set
Setting up an emergency fund will be one of the first steps towards building towards financial independence. This is why it is important to set achievable goals, so you do not become disheartened if you fail so early on. Early on is all about building confidence and momentum so do not sabotage yourself by setting unrealistic goals.
18) Keep The Extras
Every little bit helps, empty out all the coins from your wallet/purse at the end of every day into a jar, and take the jar to the bank regularly to deposit into your account. You will be surprised how much money can accumulate doing this. If you get a bonus at work, or some unexpected income from somewhere, then put it straight into your savings. These extra amounts really accelerate your savings.