Building an Emergency Fund

Comments Off by in CMW News
April 13, 2018
Building an Emergency Fund

Image Copyright Ted Grussing Photography – Used with permission

Do you have an emergency fund? It’s a well-known fact that unexpected expenses are a part of life. Yet even with this looming in the back of our minds, the majority of us feel unprepared if a financial emergency were to strike!

This week, we will talk about 5 easy steps to build an emergency fund of your own. Remember, a great emergency fund is the beginning of your journey to financial security and wealth. It will not be a plan dependent on credit cards (which can push you into a terrible cycle of debt).

  1. When you start, think small. Many people do not save money because they can’t save a certain amount. But over time it doesn’t matter how much you can put away as long as you save! So pick a realistic number for yourself. It may be as little as $2.00 a day or $25.00 per month. Even $10.00 per month. It doesn’t matter, just get started!
  2. Set up an automatic move. If you have trouble with discipline, or just don’t want to worry about remembering, why not set up an automatic withdrawal? This way a designated amount will be deducted from your pay and put into an account for you!
  3. Cut some things. If you look over your budget and find that you absolutely cannot save anything currently, try to think of something you could cut out. Small changes like packing your lunch, or not buying your favorite coffee on your way to work one day a week could really add up. Then take the money from whatever you decide to exclude and save it!
  4. Don’t wait until you are out of debt to start saving! Although it is wise to develop a plan to pay off your debt, don’t let this keep you from putting some of your money towards an emergency fund. Remember, the earlier you plant the saving seed, the faster it will grow!
  5. Tend to your garden. Treat your emergency savings account like a new baby. Nurture it, protect it and feed it regularly so it will grow!

Trying to save six months or even one month’s worth of living expenses can be daunting. But it may be more within your reach than you realize. Just get started, no matter how minimal your contributions. Your future self will thank you.

Have a wonderful weekend!

Source(s):

Pant, P. (2017, June 8). 5 Easy Ways to Build an Emergency Fund. Retrieved from https://www.thebalance.com/easy-ways-to-build-emergency-fund-453608