One of my goals this year is to have an emergency fund. Although this is common financial advice, many of us think about having one but never set a plan of action.
An emergency fund is usually three to six months of expenses that help us react well when we have an emergency.
I believe in starting with baby steps. What if we get started by building one with at least $500 in six months? Let’s start small!
Here are 3 tips to get started with your emergency fund:
1. Skip that latté once a week. I love a good coffee just like you but once a week, I skip the coffee shop and put that money in a savings account, or even an envelope. Imagine how far $3 can go! In 6 months that’s $78 saved!
2. Save at least a $5 every other week. We all have a set amount in our heads for those “I want it and it doesn’t cost that much” items. Well, in my case that’s about $5 every other week. In a few months you save another $65!
3. Use electronic coupons services like SavingStar and Upromise. These services give you the option to select products you think you’ll buy via “e-coupons”. They are attached to your loyalty card and as soon it registers the purchase of that product you can expect to have the value of the e-coupon reimbursed. Once you hit the threshold, that’s money that can help build toward your emergency fund.