7 Easy and Helpful Ways to Build an Emergency Fund


It’s never too late to start building an emergency fund.  It’s a very common financial advice and I’m sure you already know how critical that is.  However, the problem is how to actually do it and where to begin – especially when you’re already struggling with your current financial situation.

The good news is that you don’t have to start with a huge amount nor it requires a big salary.  To help you get started, here are 7 easy and helpful ways to build and grow your emergency fund.

1. Set a goal and monitor your progress.

Of course you need to have a goal to begin with.  Put it on your planner, your vision board or wherever that can encourage and motivate you to save up.  Monitor your progress the way you monitor your weight if you’re trying to lose weight.  This way, you’ll see where you are and how close you are to success – this will give you more motivation and encouragement that you’re on the right track.

2. Start small.

Like I said, you don’t have to start with a big amount.  It’s okay to start small.  What’s important is that you started and you are doing it.  You can even begin with only $25 per paycheck and work your way up month after month.

3. Reduce your expenses.

… So easy to say but so hard to do and I’m not even going to start lecturing you on how you can reduce your expenses.  Just decide on things that can be cut back – subscriptions, daily gourmet coffee, weekly movie dates, etc.  You know your wants and needs.  Whatever you decide on, save that money for your emergency fund instead.  You’ll thank yourself later.

4. Generate extra cash.

Another way to get more savings for you Emergency Fund is to look for ways to earn more money.  Whether it’s a second job, freelance work, side business or selling pre-loved belongings, this is a very helpful strategy to generate more money for your budget and savings.

5 Ways to Earn Money FROM Your Own Home

5. Save loose change.

A little goes a long way and saving loose change in a jar or an adult piggy bank is an effortless way to save money.  You’ll be surprised with how much you can save by collecting your spare change – it can add faster than you think.

The Modern Piggy Banks that Every Adult Needs (Yup, Piggy Banks Aren’t Just for Kids!)

6. Treat Emergency Fund as a bill.

Like those bills you need to pay each month, think of your emergency fund as one of the non-negotiable things you need to pay for each month.  Add it on the list and make sure to pay “yourself” every payday.

7. Save your tax refund.

Instead of using it for big purchases such as a new gadget, a vacation, etc., save it for your emergency fund.  It’s a big chunk of money to get your emergency fund off to a great start.

The key is to be consistent with your savings and be smart with your spending and budgeting.  Remember, it’s all about discipline and not how much salary you receive.

About Toni Marie

Toni is a regular contributing author on Guest Money Blog. In addition to writing about money topics, she also likes to write about relationships and health.
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