4 Tips to Help You Build an Emergency Fund

Life is full of the unexpected. Sometimes, people may not be able to handle the costs that life throws at them. An unexpected car accident, a home repair, and more are what can cause people to need an emergency fund. However, getting an emergency fund together can be difficult, especially if you have a hard time getting money or are dealing with financial hardship. Luckily, it isn’t as hard as you may think! There are 4 tips you can keep in mind when getting your emergency fund together.

Step #1: Figure Out Your Goal

You want to get a good idea of what your goal is for your emergency fund. If you have a career that provides a stable source of income then a good rule of thumb is to have an emergency cushion worth six months of your living expenses. For example, if you have bills worth $2,500 a month then you will want $15,000 in the bank.

Step #2: Separate Your Goal Into More Manageable Payments

Now that you know your big goal, you can start working on it piece by piece. This can allow you to feel some sense of control over your savings. First start with a goal like $1,000. Small deposits you make can be a great place to start!

Step #3: Rework Your Budget

Now that you know your goal, you can start changing up your lifestyle. You will want to see where you can cut back your expenses. For example, if instead of grocery shopping you go out to eat everyday, it may be time to cut that spending back.

Step #4: Do NOT Touch Your Emergency Fund

A lot of people like getting themselves nice things. As your emergency fund continues to grow, you may be tempted to tap into the money. However, it is important that you do not just spend your money. You should only use these funds for emergencies. If you don’t have self-control you can talk to a financial advisor to set this money aside.


Getting an emergency fund together can be difficult. It doesn’t happen overnight but with healthy habits like getting a goal together, making it manageable, improving your lifestyle, and not spending the money you save can help you achieve that goal!