GRRR Emergency Fund!!! Do you have one? We are in the process of getting the $1000 emergency fund in place and once the credit card debit is paid off then we will do the standard 3-6 months of income. Right now we just have $400 and I told hubby and he was surprised that we had that much already. Yay!
Why its so critical to establishing one? Because if you don’t then you are just going to keep on using your credit cards and we want to eliminate them. Don’t we? We want to get out of debt and stay out of debt once we do and establishing an emergency fund will help!
5 Tips For Creating An Emergency Fund
1. Starting off small. Skip the run to Starbucks! (Ouch) Don’t buy that pack of cigarettes! (Double Ouch) Ok, I don’t drink coffee or smoke so that is easy for me, but I do love those chocolate pomegranates that Sam’s Club sales and that is a $10 bag that I was getting 2-3 times a month!! Really I was! And I haven’t gotten one this year! It will grow and you will love watching it grow and soon you will be motivated to try and save even more! Who is with me?
2. Set up an automatic deduction. Set up an ING Direct account (The Orange Savings Account℠. Earn high interest. Great rates, no fees, no minimums. Start saving in under 5 minutes.) and have it automatically deduct an amount each paycheck. This is great cause then you don’t have to think about it. We will be doing this for our standard 3-6 month income savings (just in case hubby loses his job)
3. Rounding up. Our bank and yours might do this too, round up on our purchases and puts it into a True Saver Account. Perfect for starting off small with just this!
4. Get rid of an expense and save it. This could be anything! We got rid of cable and use Netflix. Take that amount and put it in your savings account!!
5. Whatever is left from your grocery budget, save it! We budget $160 for a family of 5 every paycheck. Right now, sitting in the grocery envelope is $50 and I have one more week to go before hubby gets paid again. Whatever is left in that envelope will be put into the savings account!
Do you have any tips for creating an emergency fund? I would LOVE to hear yours!
You can also read, “An Emergency Fund: Is It Really Worth It?”