Save to Cover Cost

• Although it may seem difficult to save money, create a savings account for yourself. Check the interest rates, because some banks can give you a high interest rate for depositing certain amounts of money. Keep building on the fund consistently; even when you think you have enough, make these deposits.
  
  This money will serves as your emergency fund when you need to replace something, and it will serve instead of having all of that extra insurance that you don't necessarily need. When you keep on building this fund, you will have the money there to use in emergencies and will not go into extra debt.
  
  

Increase Deductibles

• Increase the amount of deductibles on house or automobile insurance. This will make your premiums lower and you will be able to use your self-insurance savings account instead to cover anything else. Since these types of insurance are required, you can't cut them out, but there are ways to save. Health insurance is also something that should be kept, but invest in a total-coverage emergency medical insurance plan.
  
  Any types of insurance that you have just in case of emergencies but that you may not ever need should be eliminated. Items such as insurance on valuable items that you have in the house can be cut, because if they are ever lost or stolen, they can be replaced by your savings.
  
  

Investments

• Take some of the money that you have saved up and put it into investments. Check with various banks and financial institutions concerning guaranteed investments. These are bonds that you buy and keep with the bank for a predetermined amount of time. After that time limit is up, you receive the money back plus interest. You can then reinvest and repeat the procedure. The terms and interest rates depend on the bank.
  
  More appropriate for the short-term emergency are money market accounts or mutual funds. These are available through various agencies and can be accessed at any time depending on the contract that you wish to sign. These do take a bit of research to find the right one, but you will benefit more from these than regular insurance policies in the long run.