With unemployment rates still high, it’s important to build an emergency fund when times are good so that you will have a cushion to fall back on if times ever get bad. Experts recommend an emergency fund to cover about seven months of expenses to avoid falling into

debt in the event that you experience job loss. Many experts recommend an emergency fund of closer to nine months or even up to one year to protect yourself financially against additional hardships while unemployed, like a medical problem, a large expense like car repair or other misfortune.  The Equifax Finance Blog has tips for your emergency fund and how to build it in the new article, “

Money Management: Ways to Diversify Your Income.”

To build up your emergency fund, you can cut down some of your spending, and/or you can look for an additional source of income. This source doesn’t have to be another full or part-time job, though:

  • Odd jobs: Instead of getting a part-time job, look into earning money through odd jobs. Offer yard care, handy work, technology service or some other niche to fill. This is a great way to expand a hobby, develop a new skill or help your community.
  • Royalties: Think about creating something or sharing a project you have created with the world. Books, music, and even photographs can provide you with a regular income stream from the royalties. There are lots of websites where you can share your content in exchange for income instead of chasing a big publisher.

There are limitless options for expanding your income and ways to

invest your money after your emergency fund is built up. Visit the Equifax Finance Blog for more information about that as well as expert advice on credit, taxes, retirement and more.

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