7 Ways to Build a Chronic Illness Emergency Fund
Having a chronic illness is expensive. Struggling financially is so common, you might even call it normal. Those of us who live with chronic illness have the usual expenses, but your health condition cranks up the strain on the budget even more. Having a cushion of savings can make all the difference. Whether it’s paying rent during a month when you’ve had trouble working, a new important medication, or — because we’re all just people underneath it all — a bit of extra money to make the holidays special or for a soul-restoring trip. Even when you don’t have a lot of money, there are ways to gradually stuff the savings cushion.
Here are 7 tested ways I use to build my savings.
Set up automatic investing
Who has money to invest when you’re struggling? You do. But first, allow me to share a particularly boneheaded example from my past.
In Canada, you can save for your retirement through RRSPs — registered retirement savings plans, which are tax-free until you cash them in when you stop working. Because I grew up in Denmark, I didn’t really understand what they are. All I knew was that this was something that people contributed to through their salary. Since I was either in school or working on a contract-basis, I never got one of these magical things. And then, about 30 years after coming to Canada, I discovered that putting in even a small amount every month could have gradually built a beautiful start of a retirement fund for me. You do the math. $25 a month for 30 years? I mean: ouch.
Don’t be like me. Make an appointment with your bank to check your investment options. Then arrange for an automatic transfer at a certain time each month. Even if you can only afford a small amount, you’ll be surprised by how fast it can grow.
Feed your piggy bank
Several years ago, I got a large polkadotted piggy bank that’s so cute, it makes me happy every time I look at it. I feed it regularly, by emptying out the change in my wallet when it gets heavy, and through the bi-weekly cleaning out of my purse, usually revealing a bunch of change rolling around on the bottom. It quickly became a habit to plop loose change in the piggy bank and otherwise forget about it. Eventually, it got full and we spent an evening rolling up the contents.
It was over $800!
Get yourself a cute piggy bank — or do a much cheaper option, such as a large Mason jar or a container from the Dollar Store. Then start feeding it and otherwise pretending it’s not there. It can be your adventure fund, an emergency fund, saving up for something in particular, or a nice chunk to add to your investment.
Add regular extra savings
Over the past few years, I’ve found a couple of extra methods of topping up my savings. My bank offers a program in which a small amount of money is deposited into my savings account every time I use my debit card. I don’t notice, and my savings gradually grow.
As well, at the end of the month I take a look at my finances. If I have something left over — regardless of how much or how little — I add it to my investments.
Take a year-long savings challenge
Until recently, I’d never heard of the 52-week savings challenge, but I already love it! Basically, you save a particular increasing amount every week for the entire year. There are a couple different ways of doing it, depending on your income and expense plans, and I’m sure you could mess with how much you’re putting aside every week. The important thing is the ongoing challenge of putting aside a bit extra.
Go on a spending diet
As I have culled my stuff in the past year, I’ve become much more conscious of where I spend my money. We live in a consumer culture and it’s really easy to persuade yourself that an extra $5 won’t matter. And it doesn’t, really. Except when that happens every day. Not only can it waste money on stuff I might not actually need, but it also clutters up the place, making it harder to keep my home as calm (and clean) as I would like.
So, I went on a spending diet, making a game out of challenging myself. Some months, it worked beautifully, at other times I snapped. But deciding that I wasn’t going to buy more stuff was really helpful whenever I saw something cute that I was sure would be essential for my happiness. It meant I would take some time to wander around the store, perhaps holding the item, thinking about whether this thing was something I needed or actually wanted. More often than not, the answer was no.
Go on a spending diet, with a twist
I mentioned earlier that I look at my financials at the end of the month, diverting the extra into my investments. If that doesn’t float your boat, try this one instead. Let’s say you’re on a spending diet. Every time you don’t buy something, don’t go to the movies, bring your lunch instead of going out, put the amount it would have cost into your savings account, investments, or piggy bank. It’s another way to sneak in small, regular savings.
Hunt for bargains and sales
This one is obvious, but there’s nothing wrong with being reminded that you might be able to find something cheaper elsewhere. Whether it’s buying store brand instead of brand name, getting a membership to Costco (upfront cost, but long-term savings), or checking coupons, there are some great ways to save a little in your daily budget. Just keep in mind that if you have to drive far to get a deal, you may spend the savings on gas, leaving you no further ahead.
I have never made enough money to be able to save big chunks of cash and, quite frankly, don’t know a lot of people who do. And it can make you feel really helpless. But if you start now by finding ways to save a little on a regular basis, in ways you’ll hardly notice, you will over time get to a much more secure place financially.
Tag: chronic illness, emergency fund, finances, healthy finances, piggybank, rheumatoid arthritis, savings
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You left one off. I make Sheryl do it. Not a good plan, but a sure one for certain. Its the 42 year thing.
You should rent her out. I could use a Sheryl.
I have an app called Acorns which rounds up all my purchases and then deposits the money into my account. It’s like having an online change jar. I’ve been doing it for about a year now and I was surprised how much money is in the account. Any sort of forced savings is the best way for me to save whether it be a retirement fund or some sort of direct deposit account t.
That is so awesome! Gotta check whether I can use it in Canada.
I think people generally don’t save because they often think that to be effective, it has to be a large amount in a short time to be effective. What is overlooked is that small amounts over a longer time is in fact far more effective! You have certainly illustrated this well and in 7 different ways to show that it really does all add up over time. Think small and look after the pennies and the pounds(dollars) will look after themselves – whether it be for a chronic illness fund or indeed, any other worthwhile cause.
I think you hit the nail on the head. People think it has to be a substantial amount, rather than taking the long view. With savings, you have to think in years, even decades. Not right now, right here.
Money saved is like money earned. Nice list of ways to do it. I am also one who keeps looking for good deals.
I no longer make a major purchase unless it’s on sale. If it is at all something that can wait a bit, there will always be a seal coming around.
This is a great list, Lene. Those small pieces of change that rumble about in your purse can really add up. We used to do that, and it was amazing how much we saved without realising it. Now we tend to use cards to pay for most things so don’t have so much loose change. It’s also good to have a separate account where you can save a small amount each month.
Completely agree. Ever since I started relying increasingly on my debit card, there’s a lot less money rolling around in my purse. The difficulty is that debit is really convenient, especially because I can’t use an ATM independently. I think is a lot to be said for returning to cash. Gives you more a sense that real money is being exchanged.
Those are great tips! I have done the spending diet and I was surprised by how much money I was spending. I do Acorns and a box is hidden in the house haha
I just found out about Acorn — it’s incredible! What a fantastic idea.
Love these tips! I currently have mason jars stashed all over my house where I throw loose change! It’s such an easy way to save for a rainy day because who misses the spare change at the bottom of their purse – it’s like you don’t even realize you’re saving!
RRSPs are also a really great way to do it, especially if you opt for automatic withdrawal like you mentioned. We have an RESP (registered education savings plan) for both our kids and it is so nice to know their secondary schooling will be taken care of without us having to worry much about it!
Great article, thanks for sharing!
It all comes back to small steps that are automated and made regular, plus ads in time. All of a sudden, there’s money! 😉
It is amazing how much you can save up using a piggy bank! I like keeping my change in a mason jar, though I don’t use cash all that often so it takes about a year to fill it up completely. The last time it was full I rolled up everything and had $70 so I took it to the bank and put half into each of my two childrens savings accounts! There are a lot of great tips here.
Thanks so much! The same thing happened with my piggy bank — it took several years to fill it up, which made it last money I was saving up for a particular thing, and more like “found money.” All of a sudden, I had some extra cash to buy something nice, but also put a big chunk in savings.
These are great tips for saving money without too much effort. It’s always good to have money put away for emergencies.
I love the idea of a spending diet! Being conscious of spending habits and not giving in to ‘retail therapy’ has helped me stay a minimalist – less “stuff” to clutter my home!
There are some good tips here for sure. I think people forget how important it is to actually make some savings x
It’s always a good way to start saving not just for chronic illness but other sundry expenses. The piggybank has never failed me too.
I’ve always tried to make a solid effort to save in case of emergencies. Last year I had to undergo a ton of tests and doctor visits (all paid) and I’m so thankful I always put money aside. Now I need to rebuild my savings and these tips are great for anyone to use!
Those are great options to have some extra money and they are actually easy to follow! Thanks for sharing!
Great idea! You never know how much of healthy lifetime you have ahead of you. And health is the most important of all