How to Save an Emergency Fund
If you’re wondering what the big deal is with Emergency Funds - this post is for YOU!
Because, if you spend ohhhh about five minutes googling “personal finance” and “saving”, emergency funds are going to float to the top of that list PDQ - that is, Pretty Darn Quick! 🚀 🚀 🚀
But, before we get into how and how much to save for your emergency fund, let’s back up just a wee little bit, shall we?
What is an Emergency Fund?
An emergency fund is simply a savings account dedicated to saving for all those things in life we hope don’t happen, but know could happen. Things like, losing a job, a loved one becoming ill or major home repairs that insurance doesn’t or won’t cover.
If you want to go deeper on “What is an Emergency Fund?” then check out this blog HERE.
How to Save an Emergency Fund
If you are just starting an Emergency fund, then here’s my #1 BEST ADVICE: START.
That’s it: JUST. START.
The most important thing to do when it comes to your emergency fund or any other savings goal is to START.
Now, you may be saying to yourself “Okay, cool, but exactly HOW do I just start!?”
How to START Saving an Emergency Fund
Here are the three most important things to remember when Saving an Emergency Fund:
- Start SMALL
- Be CONSISTENT
- As soon as possible AUTOMATE.
Especially if you are trying to form the habit of saving, you want to start small. But, not so small that you can’t see progress.
Some good goals could be:
- One net paycheck’s worth of money
- One month of net paychecks
- $2500, or the equivalent wherever you are.
- Three months of net paychecks
These are some of the goals my coaching clients have been the most successful with, so feel free to take one as your own. 😊
Once you’ve decided on a goal, figure out what the amount is going to be per paycheck and resolve to save that amount each paycheck, no matter what. Or, as my daddy used to say “Come hell or high water!”
Whether it’s saving money, paying off debt or situps - consistency is your friend.
Slow and steady wins the race, and as I always say, turtle progress is still progress!
As Soon as Possible Automate
Automating the amount you save each month is the gold standard of any savings strategy.
Want to go Next Level? Have the amount bypass your regular checking account and go straight to your savings account!
When I was forming my savings habits, directing the money straight to my savings account helped me stay the course and meet my goals because ONE, I didn’t have to remember to transfer the money myself, and TWO, I couldn’t accidentally spend it! #winning
Since your emergency fund is one of the foundational building blocks of your entire financial “house” getting this savings goal automated as soon as possible will put you squarely on the path to success!
(Hey girl hey! I want to be your cheerleader. DM me on Instagram and tell me how much you’ve saved. Even if it’s just $5 in your cookie jar. That’s awesome and I want to celebrate with you!)
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