How to Build an Emergency Fund Quickly

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build-an-emegercy-fundIf you follow any financial gurus like Dave Ramsey, you know that an emergency fund is one of the most important parts of your financial well-being. But if you struggle to survive paycheck to paycheck, it can be hard to find the money you need to stock an emergency fund. Does the thought of creating your emergency fund stress you out? Read on for easy-to-use tips.

Take It Out Before You Notice It

Most banks are extremely versatile in their online banking options. You can set up automatic transfers to savings, pay bills online, or have money withdrawn before it even settles in your checking account. Set up a separate savings account for your emergency fund and set your online banking up to take out $10, $20, or $50 each pay period.

Envelope Budget
Don’t just take money out of your checking account! Even if you spend less than usual on gas or food, the money somehow gets used up before you can save it. Put your money into envelopes each pay period. Once you reach the next pay period, take whatever money you have left in your envelopes and add it to your emergency fund. It’s a painless way to add to your fund.

Check out Frugal Living Mom’s Savings Worksheet (Free Download)

Keep It Out of Your Reach

If you keep your emergency fund in your house or connected to your checking account, you might be tempted to spend it. Know your limits—if you’ll touch your emergency fund when it’s not really necessary, keep it out of your reach. Set it up at a separate bank so that you need to wait two to three days before it hits your account. No more impulse purchases!

Start Small and Expand
You don’t need to come up with $1,000 or even $100 right away to start your emergency fund. Add whatever you can to your savings and get started today. Every single dollar adds up!

I think the key is not to get discouraged, just do your best. If you happen to forget pick up and start where you left off and keep going. YOu will find that soon enough you will have a little nest egg that will really take the pressure off when emergencies come up.

Do you keep an emergency fund?

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Comments

  1. kathy says

    Everytime I get a $5.00 bill back in change I save that $5.00 bill. Put it in my big Crayola bank. Boy, can’t beleive how fast it all adds up!!! Never use/break a $5.00 bill!!!!!!

  2. Ethel Schnorr says

    I’ve been envelope budgeting this past few months and it works the best for me. When I was in the habit of the convenience of using my debit card, I always overspent. Gas for the car? Oh, fill it up because I have the money “in there”! Few groceries added up to some take out’s on the way home…..again, another $20 unnecessarily spent! Thanks for your pointers – I’m taking up on them!

  3. Jessie says

    A little thing my husband and I do that helps is we never use change. So any change we get goes into the savings jar. It doesn’t look like much until you run it through once of those change machines. We once had twenty dollars saved up that way.

  4. Jen says

    I’ve been paying off loans as well as direct-depositing money from my paycheck to savings before I even see it. Here’s a trick: Once a loan is paid off, set up an automatic transfer for the amount of the loan payment from checking to savings. You’re already used to not spending that money…keep not spending it, and watch your savings account grow! :D

  5. says

    Yes, we are currently building up our emergency fund. I’m hoping to get £600 together as a starter fund, before we attack our debts. My husband just lost his job, so it’s important we take care of our finances, and hopefully he’ll be working again soon so we can bump up those savings again!

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