New Year Resolution: 6 Tips To Save Your $1000 Emergency Fund In 2019 | Dr. Breathe Easy Finance (2024)

This is theNew Yearand it’s time to make those infamous resolutions. According to an ABC poll, less Americans are making weight loss and exercise resolutions and more are focusing on saving money. Let’s be honest, statistically, the lifespan of those weight loss and exercise goals, are mid- January at best. Say bye-bye to the keto diet and hello to your emergency fund. New Year’s resolutions can be difficult to commit to. We all start out passionately, but as the year progresses, they tend to drift away.

What if I gave you 6financial New Year’s resolutions that are a piece of cake to implement and maintain and could possibly provide you with the money to start your first emergency fund of $1000?

First $1000 dollars is part of the 7 baby steps to financial freedom of Dave Ramsey and our 12 toddler steps to financial freedom

PIN THIS IMAGE

1. Fire Your Accountant: File your own taxes

I know what you’ve been told, but you absolutely do not need a professional to file your tax return. Most people have a simple W-2. If you work for an employer, receive a W-2 and have no investment assets, you are more than capable of filing your own tax return.

When I filed my first income tax, my mother took me to our family’s tax guy. They have been extremely loyal to him for decades. I walked away with a return that year, thanking him greatly, as if he had worked some magic with the IRS. Years later after my husband and I started filing our own taxes, I realized how gullible I had been and that there is no secret society between the IRS and the accountants.

Let’s debunk the myth

You are not going to receive a return or any additional benefits because you have a good tax guy. Its basic arithmetic and the numbers remain the same regardless of who is plugging them in. Save your money and DIY! Unless you are self-employed are have assets that would complicate your filing. The same software used by accountants is now also available to the general public.

2. Cancel Non-active Memberships

Use it or loss it! Get rid of any memberships you haven’t used for a month or longer and are paying a fee. “According to USA Today, the average gym membership fee is about $60 per month, yet 67% of memberships go unused.” The more specialized gym clubs such as Crossfit and Orange theory are even pricier. I don’t know any person, who would withdraw $720 out of their bank accounts and flush it down the toilet. If you are paying $60 dollars a month for an unused gym membership, you are essentially doing the same thing.

Try to negotiate putting your membership on hold or get a pay as you go option. Therefore, if you are not able to attend, you aren’t throwing money away. Many people fear pulling the plug on gym memberships because they see it as sealing their fate of ever exercising or becoming healthier. Cancel it! Use the $720 dollars per year to establish your first $1000 emergency fund.

Check out this post on how to create your personal finance planning pyramid. Emergency fund is part of the layers.

3. Cool-off-Period

This concept comes from a consumer protection law, and refers to a period of time that the consumer can cancel a purchase without penalty.

The cool-off-period has been my saving grace. Everyone should impose a cool-off-period. Oftentimes, our purchases are so impulsive that we don’t give ourselves enough time to think it through. Before any major purchases, I give myself 2 weeks to think it through and do adequate research. If at the end of the 2 weeks, I’m still able to justify the purchase, I proceed. However, 9 times out of 10, I either forget I even wanted the purchase or realize, I never needed it to begin with. Stopping impulsive purchases based on store demos and slick sales people and allowing ourselves to cool off, can help us save tons of money.

4. Purge Your House

Purge your house this New Year. My mother- in – law always says, if you haven’t worn something for 6 months, you’re probably never going to wear it again. Sell it! Make some cash and put it towards your emergency fund.

Use social media as a means for advertising and make cash quickly. When my husband and I relocated to our first apartment together, we decided to get rid of some of the second hand furniture he had purchased as a bachelor.

In my opinion I thought everything was complete trash. However, my husband was convinced that he could still resell some of our things. Needless to say, he resold our twice used sofa for $100 dollars after initially paying $100 dollars for it and using it for 3 years. I say all this to say, “One man’s trash is another man’s treasure.” Try to sell those things that you might think are useless.

To read more about point #4, it is one of the 101 ways to save money that you have’t tried before. Trust me, you will find one that speaks to you

5. Pay Bills on Time

This is a freebie. Paying bills on time can be passive with the use of auto-pay. It will not only improve your credit score but prevent you from wasting money on late payment fees. Many people get penalized with late-fees not because of the lack of funds but because they forget. Use auto-pay or a reminder app.

6. Buy-off-Season Merchandise

This is an easy and rewarding shopping rule that we all know but tend to forget. Why pay full price for clothes, holiday décor, lawn and gardening items, or even in certain instances a house, when you can purchase it off season for with the 30%-70% discount. It’s a no brainer! Stock up on holiday items after that particular holiday.

I’ll typical go to Target or Wal-Mart the day after the holiday and snag holiday items for 50% off. I’ve purchased wrapping paper, gift bags and home décor for next Christmas at half price. Similarly, I purchase clothing for my little humans on clearance, when the new arrivals for the next season are out.

Thanks for reading. Please comment your thoughts below . We love to hear any other tips you might have.

Pin and share the post to help spread the word.

You love what you read here? Subscribe and join us below. You will get notifications whenever we post.