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For some, three months might be more than enough.
For others, it might be better to have a much bigger financial cushion.
If youre living on Social Security, it might seem impossible to build anemergency fund.
Even so, there are always ways to save just a little more for those unexpected expenses.
Heres how to build an emergency fundwhen your primary source of income is Social Security.
Nonetheless, youve got to do the best with what youve got.
And you oughta be prepared for unforeseen circumstances and expenses.
As long as youre healthy and have thetime and abilityto do so, Gillet suggested getting a part-time job.
This could be something simple like ride-sharing, food delivery or pet-sitting.
Before taking on any additional income, double-check it wont affect your Social Security benefits.
Keep in mind that budgeting isnt a one and done situation.
You might have to make some adjustments as you go.
Just because you set up your budget doesnt mean its all done, Kullberg said.
Hopefully, this way your emergency fund can keep pace with inflation.
Even if you have a smaller fund, using ahigh-yield savings accountis still a good idea.
Currently, the national rate cap on a high-yield savings account is 6.08%.
Any interest earned on your account balance is essentially free money.
Now, say you contribute an extra $200 a month into that account consistently for five years.
Thats $3,267 in earned interest alone.
Depending on your date of birth, your full retirement age is 66 or 67 years old.
Around this point in life, you may become eligible for other benefits.
Its also vital to maximize senior benefits, said Dre Villeroy, CEO ofBeyorch.
Look into other senior benefits too, not just government ones.
This could be a senior savings program at your local grocery store.
Or it could be discounts on other everyday services.
Any proceeds can go straight into your emergency fund.
you better convert any unused item of value into cash to be used as legal tender for these emergencies.
You shouldnt get rid of things that you need or that bring you true joy.
But if its something thats collecting dust or taking up space, selling it might be your best option.
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