Too often there comes an emergency situation that calls for out of pocket costs such as an auto accident, medical bills, or a home furnace suddenly breaks down in the dead of winter. For a quick fix, many often find themselves trying to borrow money from friends or family, head to their local bank to take out a personal loan, or even unfortunately turning to a cash advance on their credit card. While dipping into savings for emergencies cannot be avoided as the bills need to be paid, but if you get in the habit of planning in advance as you would a vacation, it can ease the financial burden. Even if you’re living paycheck to paycheck, you can still build a cushion to fund surprise expenses.

A Little Each Paycheck Goes a Long Way

While experts believe that a few months’ worth of reserves should be stashed away in an emergency account, that certainly cannot happen overnight. It can be frustrating to feel like you’re never getting ahead, but starting out small will finally build up over time. By putting away a little each paycheck it may take a year to finally see results, but it will be worth it.

You might be asking yourself how can that can be possible when money is already tight, but it will have to take sacrifice and patience. Reducing unnecessary expenses is a great way to free up a little extra cash each month. Cutting the cable cord, cancelling the gym membership, and limiting the amount of times going to bars and restaurants can free up hundreds of dollars a month in no time.

Add Your Tax Return & Merit Increase to Savings

Let’s face it, when extra money is added to your account, outside of making sure all bills are current, the first instinct is to spend it. Sure, there’s nothing wrong with making sure life experiences are still carried out to maintain sanity, but going on a shopping spree may not be the best use of your hard-earned money if you’re lacking a financial buffer. As you continue to get ahead, adding an annual raise from your day job can fund an emergency account. In addition, instead of planning another vacation, how about transferring a tax refund to savings.

Use a Personal Loan Instead of a Credit Card

If you’re a bit short on your own savings, and you don’t feel like knocking on the door of friends or family to help, a personal loan can be a great way to solve a financial emergency. By borrowing a set amount, you’re able to spread payments out over a period of time with a fixed interest rate, keeping monthly payments low. This way you can build this payment amount into your monthly budget. This makes more financial sense than a cash advance on your credit card as the interest rates are sky-high and could take a decade to rid yourself of the balance if you’re looking to keep payments low. Credit cards are useful tools when it comes to earning rewards for purchases, but not so much with loans.