BeckyIt’s terrifying to read that more than 51% of Americans have less than 3 months’ worth of expenses and 54% of Americans live paycheck to paycheck. That means if an emergency comes up, about half of Americans would have no money to dip into to cover an emergency. My husband and I like having 6 months’ worth of expenses saved up. We got bumped back down to 3 months’ worth when our HVAC went out this last summer on one of the freaking hottest. days. ever. We’re slowly working our way back up to 6 months’ worth of an emergency fund. However, if you’re just starting out and trying to save up an emergency fund or a little cushion while you pay off debt, here’s a few tips on how to build up an emergency fund of $1000 FAST!
Stick to your budget
The best way to succeed at making savings goals like an emergency fund is to STICK TO YOUR BUDGET. Whatever monthly budget you’ve set for yourself will show you exactly how much you should be able to save. My advice would be to take that savings out first before anything else so you can’t spend it. Then follow through with the remainder of your budget as planned.
Use your tax return
This is actually how I started my emergency fund before I met my husband. If you get a tax return over $1000, you can easily use that by setting aside $1000 in a separate savings account for emergencies only. This is an awesome way to start a small emergency fund because it’s ONE AND DONE!
Work extra jobs/side hustles
Working extra jobs or side hustles is a great way to build an emergency fund fast. Lots of people make extra money by simply babysitting, house-sitting, pet-sitting or walking dogs, delivering pizzas part-time, even renting out a room in their home. Check out sites like Rover, Airbnb and Care.com for side jobs that can help accumulate money quickly.
Go to an insurance broker to see if you’re getting the best deal on auto and home insurance
Ever heard the phrase, “set it and forget it”? Maybe you’re like me and you’ve had your home and auto insurance policies for a few years now. This is something my husband and I looked into a couple years ago and it really did save us some good money to see our options! Something as simple as having an insurance broker check out your auto and home insurance rates annually could save you hundreds of dollars! Look into brokers in your town and make sure you’re not paying more than you need to on your home/renters or auto insurance.
Sell stuff
With sites like Facebook Marketplace, Craigslist, Plato’s Closet, Poshmark and more, it’s so easy to sell items in person and online. You can make a good chunk of change on items you don’t use around the house or clothing you’re not wearing anymore. It’s amazing how much people can make junk they were just going to give away for free at their local Goodwill.
Cancel unnecessary memberships and subscriptions
I know I know! This is a hard one. With so many streaming platforms these days, it’s hard to limit yourself to just one. With each platform pulling you in for a different favorite series on it, it gets difficult to not pay for them all. But don’t do that! When you’re saving up your emergency fund, it’s important to cut every unnecessary item out of your budget. That includes streaming platforms, magazine subscriptions, even gym memberships if they’re going unused. Once you have that emergency fund built up, you can reevaluate adding some of these items back into your budget.
Save your change
Every last penny counts when you’re trying to build up that emergency fund quickly! It’s crazy how change adds up so fast. Each night, empty your change into a piggy bank and count it up at the end of the week. $5 is $5! That gets you to your goal of a $1000 emergency fund faster than NOT including your change.
Hold the coffee
Have you ever added up how much you spend on coffee and/or energy drinks a week? That stuff takes a toll on your budget! By cutting drinks out completely and making coffee at home or buying a bulk case of energy drinks to take with you from home, you’re saving yourself from dropping $5+ on a daily drink. Brewing a cup of coffee at home can cost you anywhere from 16-18 CENTS compared to $5 at the local coffee shop. Do yourself a favor and make your coffee at home. You’ll save both time AND money!
Make meals at home
Like coffee, this is another daily expense that adds up. On any given day, you can spend upwards of $10 on lunch or dinner. That’s $50+ you could be putting towards your emergency fund a week. That’s at least $200 you could put towards your emergency fund a MONTH. Bring your lunch to work with you. Make your dinner at home. Not only is making meals at home cheaper, but it’s healthier. Homemade meals have less sugar and less processed foods. It’s even been proven that people who eat home-cooked meals 5 days a week or more live longer! If that doesn’t sell you on saving your money for a home-cooked meal, I don’t know what will.
