Do This One Thing If You Can’t Afford a Financial Emergency Right Now

October 2, 2024 DINARRECAPS8

Do This One Thing If You Can’t Afford a Financial Emergency Right Now, According to Rachel Cruze

Nick Perry Mon, September 30, 2024 GOBankingRates

A third of Americans say they cannot afford a $400 emergency expense in cash, according to research from Empower. That’s an astounding number that reflects the financial challenges most Americans are facing today. Unfortunately, life can be unforgiving, and just because you can’t afford a financial emergency doesn’t mean you might not experience one.

That’s why financial expert Rachel Cruze insists on the importance of an emergency fund. An expert at financial firm Ramsey Solutions, Cruze tells her more than 600,000 followers on Instagram that now is the time to start building an emergency fund.

Her No. 1 solution to prepare for a financial emergency is simple.

How To Build an Emergency Fund

Cruze’s biggest tip for building an emergency fund is to start selling things you don’t use. As she puts it, “Look around your house and think, ‘What crap do I have that I don’t use and that I don’t need?'” Turning those items you don’t want or need into cash will give you a buffer to pay off surprise debts like car repairs, medical bills or even semi-planned expenses like books for school or an increase in your phone bill.

Cruze notes that there are many things you can do to cut back on your spending, like picking up a side hustle or dining out less, but says, “Fast cash is what you need if you’re in that position [of not having an emergency fund].”

Some of the items Cruze recommends selling include:

Exercise equipment

TVs

Clothes

Shoes

With tools like Facebook Marketplace, Craigslist and Poshmark, it’s easy to turn the belongings you no longer want or need into cash.

How Much Should Your Emergency Fund Be?

Cruze notes in the caption of her post that a Ramsey Solutions study found that 34% of Americans have no savings at all. To gain a measure of financial peace, Cruze recommends selling enough items to secure a $1,000 cash emergency fund. That’s the first step to taking better control of your financial health.

4 Reasons To Have an Emergency Fund