Prioritize saving so you’ll be financially prepared for the next unexpected expense.

Using money from your emergency savings fund is a bittersweet experience. Bitter because you had an unplanned expense that probably included a hassle (car repairs and broken appliances, we’re looking at you), and sweet because having money on hand means the expense didn’t derail your budget. Dipping into emergency savings is a case of when, not if. And after you use those funds, it’s important to replenish them. Here’s how to rebuild your emergency fund so you’re ready for the next unexpected bill.

Review your spending

It’s very likely that after you met your initial emergency savings fund goal your spending shifted. Return to the tactics you previously used to build your emergency fund. This includes reviewing your expenses to see where you can cut back.

Specifically, look at:

• Subscriptions: Turn off all automatic renewals. When the renewal date comes up, evaluate if you can eliminate the service.
• Memberships: cancel memberships for gyms and associations you don’t use or participate in.
• Annual credit card fees: Depending on the provider, annual fees for credit cards average about $100 and some are $500 or more. Opt for a credit card with no annual fee like those from Consumers.
• Insurance: If it’s been more than six months to a year since you’ve compared rates for your home, renters and auto insurance, shop around for a lower rate. Keep in mind that Nulty Insurance offers discounts for Consumers members.

Set up automatic deposits

Steady, incremental saving is a proven way to build up emergency savings. Use direct deposit to automate deposits in your savings account so you don’t have to remember to set aside money each time you get paid.

Save any windfalls

If you come into extra money in the form of a tax refund, bonus, pay increase or gift, designate some or all of it for your emergency savings.

Generate more income

Consider taking on a gig, second job or even getting a new job to earn more.

Also, look at things you already do that folks are willing to pay for. For example, if you walk your dog every day would your neighbors be interested in a dog-walking service?

Other ways to bring in cash are to sell items you no longer use or rent out a room in your home. If bringing in a roommate doesn’t suit you, consider renting out your garage or shed as storage space.

Make your emergency fund a priority

Until you rebuild your emergency fund take a closer look at all of your discretionary spending. Delay purchases when you can. Look for sales and discounts on the things you buy. Explore cheaper alternatives to what you usually choose. By making emergency savings a priority you’ll reach your goal sooner and be better prepared when the next unexpected expense comes up.

 

All loans subject to approval. Rates, terms, and conditions are subject to change and may vary based on credit worthiness, qualifications, and collateral conditions. Federally insured by NCUA