How to Build an Emergency Fund

How to Build an Emergency Fund

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**I am reposting this today because I know so many are struggling financially with jobs temporarily being cut during this pandemic.  Here are some ideas on how to save money now and tips for the future to have a $1000 emergency fund on hand.  

 

I hope that one category you have set up in your budget is an emergency fund.  A great number to have on hand for an emergency is $1000.  That way if the car breaks down, or an appliance dies, or unexpected medical expenses come your way, your not back in a hole of debt.  Emergencies are stressful enough – let’s alleviate some of that stress by having resources already on hand to help us out of those tough situations.

1.  Find Items Around Your House To Sell!  Whether its ebay, craigslist, or a Facebook local garage sale group – find a place where you can easily list and sell items around your house.  If weather permits and you live in an area where garage sales do well – then schedule one!  Be sure all funds that you earn from selling your items goes into your emergency fund.

2.  Find An Item In Your Budget That You Can Cut In Half For A Month or Two.  Can you use up food you already have on hand and use more coupons to really scrimp and save on your grocery budget for the next two months?  Can you turn off cable, or even just Netflix for a few months? (maybe not the best tip while we are stuck at home right now.)   How about doing hair cuts at home (easier for the guys obviously).  Take whatever you save from these temporary cutbacks and add it to the emergency fund.

3.  Check Your Utility Bills For Areas You Can Save – can you do more laundry in cold water to save on your water heating bill?  Can you get more energy-efficient light bulbs for your house?  Can you turn down your heat and put on a sweater?  When is the last time you shopped for car insurance and switched companies for a better price?  (WE saved $300 dollars this year by switching!)  Do you have a phone landline that is hardly used that you can just get rid of?  Doing little changes like this really do add up and you’ll get your $1000 before you know it!

4.  Vow To Not Eat Out Until Your Emergency Fund is Complete.  If you have money budgeted for eating out – take that money and put it into the emergency fund.  Do this for as long as it takes to save that initial $1000.  Plus with many restaurants being closed for the time being, it will be easier to cut back in this category.  Then once you reach your goal – be sure to plan a celebratory meal out!!!!

5.  Go On A Spending Freeze.  We talked about going on a spending freeze just yesterday!  Are you ready to jump on board and really try it now?

What is the first thing you will try to save up that emergency $1000?  Come and tell us in our Budget Challenge Facebook Group!

 

Want all 20 days of the Budget Challenge to come straight to your inbox?  If so, sign up OVER HERE!

Speaking of emergencies – have you seen my free printable Emergency Preparedness list of what to stock up on for a 3 day supply?  I also have a list of what to keep in your car in case of emergency – print it here!

Check out more from this 20 Day Budget Challenge:

20 Day Budget Challenge: Day #8 Go On A Spending Freeze

How To Stop Impulse Purchases & Avoid Retail Temptation While Shopping

20 Day Budget Challenge: Ideas on How To Begin Paying Down Debt

One Response to How to Build an Emergency Fund

  1. Turn down the thermostat to 60 to reduce your heating bill. Shut off. Lights you are not using and set a timer for the kids taking showers, 20 minute showers use a lot of hot water. Avoid going to the movies and buying unnecessary, expensive, unhealthy snacks to stuff Your face. Why spend $75 on top of the ticket price and better yet hold off going to the movies. Watch DVDs you have at home, or local channels free over the air with a TV antenna. Why pay for cable subscription when you can get 20 plus channels for free?
    At home haircuts do save money, hubby is the family barber and stylist. He has been cutting my hair for me for years. He gives my boys their haircuts monthly and we save hundreds a year. He says cutting my long hair is easier than giving my teens their haircuts. So if you are going to be doing home haircuts, the ladies and girls can certainly do their part and take a seat for a trim. Just be realistic, don’t ask your husband to cut your waist length hair in a ponytail into a pixie the first time with kitchen shears. Be realistic and I have seen far too many haircut disasters by moms that have no clue how to use the clippers or shears and don’t bother to do any research on how to use the tools. My first husband’s best friend had a girlfriend that got her license and wanted to give me a haircut. I said no way but he insisted that she could give my two toddler boys a haircut against my wishes. Well this bleach blond wearing too much makeup, ran her mouth rather than pay attention to what she was doing. She screwed up their hair and shaved them bald. I was furious. My mom tried cutting my bangs when I was young. Dorky bangs cut high on my forehead and she said it looked cute. She had no clue, she couldn’t even comb my hair without jerking my head around. So be realistic about how capable you are, certain people, me included, should never touch a pair of clippers or shears.
    Consolidation of shopping trips saves a lot of money. I get 56 cents a mile when I drive for work meetings, so I figure that as my Transportation cost running errands. A 30 mile round trip is $16.20 as my travel cost. I do three errands versus one for milk.

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