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How Our Emergency Fund Helped Us & Tips to Build One Up

July 23, 2013 by Lisa Park + 2 Comments

emergency fund 1

My father passed away last month. Since he didn’t have a life plan or life insurance, the financial burden of the funeral fell upon me and my siblings. Thankfully, my husband and I had an emergency fund, and we were able to help pay for our portion of the funeral. You’ll be able to hear more about the circumstances because I am guest posting about my experience on Money Saving Mom.

An unexpected event can happen to anyone at anytime. It might be the death of a loved one, an unfortunate hospital visit, or a job layoff. What’s important is that you’ve planned for these unexpected events by having an emergency fund. This is your financial cushion in case something goes wrong and you need to access money quickly. Below are tips to build up an emergency fund:

How Much to Save
It’s recommended that you have 3-6 months of living expenses in an emergency fund. To determine what’s best for you and your family, examine your financial situation, income, and needs, then decide how much of an emergency fund you should set aside.

Before you begin building your emergency fund, be sure that you are meeting your basic living expenses. And as you are building your fund, reduce your spending in areas of your budget such as food, clothing, etc. to avoid going into debt. Here are some helpful tips on budgeting.

Dave Ramsey, a personal money-management expert, recommends that if you have debt, the first step is to save $1,000 in an emergency fund, then start eliminating your debt. Once your debt has been eliminated, then you can build your 3-6 month emergency fund.

How to Start Saving
After reviewing your financial situation, determine how much money you’ll be able to put aside in your emergency fund each month. Even a small amount like $10 is better than nothing, and it will begin to add up quickly. The important thing is that you get started if you haven’t done so yet. For our family, some months we only have an extra $20 we can add to our emergency fund. It just depends on that month’s expenses that need paid.

If you feel like you are already living from paycheck to paycheck, then start small by cutting back on expenses and looking for ways to generate extra cash. You might also consider using next year’s tax return to get your emergency fund off to a great start.

Set It Aside and Don’t Touch It
It’s wise to keep your emergency money in a place that is not too easily accessible so you aren’t tempted to use the money for items that aren’t necessarily an emergency. David Bach, the author of The Automatic Millionaire, said, “The reason most people don’t have any emergency money in the bank is that they have what they think is an emergency every month…A real emergency is something that threatens your survival, not just your desire to be comfortable.”

You can place your money in a high-interest savings or money market account. If you think you’ll be tempted to use the money, then set up the account at a bank across town and don’t tie a debit or credit card with the account. It is a good idea to keep a few hundred dollars in cash in a safe place within your home just in case.

After you’ve saved enough for your emergency fund, then you can begin to save for your other goals. As a family, we enjoy going on trips together. Once we get our emergency fund back up to where we want it to be, then we will begin to start saving for our next trip. We also want to pay our mortgage off faster, so when we have extra money one month, we like to put it toward our mortgage.

It takes time to build up an emergency fund, but it’s worth it because it will prepare you for those unexpected events that happen in life. Within a few days after my father passed away, me and my siblings had to come up with enough money to cover the cost of the funeral. Coming up with a large sum of money in such a short time could have been a financial disaster, but luckily we had an emergency fund to help out in a time that we needed it.

Do you have any tips or advice on building up an emergency fund?

Filed Under: Money-Saving Tips, More, Saving Money

Trackbacks

  1. Guest Post on Money Saving Mom about My Father’s Funeral says:
    August 7, 2013 at 10:58 pm

    […] that we had an emergency fund to help pay for his funeral. A few weeks ago, I also posted tips on How to Build an Emergency Fund that will hopefully help and encourage some of you to get one started or to keeping building one […]

    Reply
  2. Air Conditioner Woes and Pregnancy Update - Saving Cent by Cent says:
    July 14, 2014 at 4:32 pm

    […] fund or savings, or maybe you do have one but you want to build it up more, read these posts: Tips to Build Up an Emergency Fund and my Top 5 Money-Saving Tips […]

    Reply

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Hello, I'm Lisa

I enjoy teaching people how to live frugally so they can live within their means while still enjoying and doing the things in life that matter most to them. I'm here sharing tips about budgeting, saving money, meal planning, simple recipes, and more.

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The KSL TV segment aired this morning! I took @ta The KSL TV segment aired this morning! I took @tamaravaifanua and @derek_photog along with me to the grocery store to do my 2-week grocery shopping.

I shared with them my tips on how I save money grocery shopping. By implementing even 1 or 2 of the tips shared, you will lower the amount of money you spend on groceries. Every little amount helps, especially since food prices have risen. I hope these tips will help you and others to save a little more money at the store.

What is one way you save money on groceries?

https://ksltv.com/520164/utah-mom-shares-grocery-budgeting-tips/

#groceries #grocerybudget #grocerystores #savemoneytips #savingmoney #savingmoneytips #grocerytips #grocerybudgeting #utahmom #utahmomblogger
This morning, I did my 2-week grocery shopping tri This morning, I did my 2-week grocery shopping trip, and @tamaravaifanua and Derek from @kslnews came along with me. 

I shared with them tips on how to save money on groceries and what I do to keep my grocery budget at $625 per month. With the price of food being way up, even I have had to raise my grocery budget this year. But these tips I share can help you to lower your grocery budget. 

This segment will be airing February 2nd at 5:30am. I know that is super early for some of you, so I'll be sure to share a link after it airs.

#ksl #ksltv #grocerybudget #groceryshopping #groceries #grocerystore #grocerylist #groceryhaul #savemoneyonfood #savemoneyongroceries
If you want to keep things running smoothly with y If you want to keep things running smoothly with your budget, then you need to look at and review it weekly, not monthly. 

Every week, check to see how you are doing, if you are on track, or if you have spent too much and gone over budget. This is the time to re-adjust what you are doing in order to stay on track or get back on track.

Use the link to check out more tips on how to budget, plus get a free budget worksheet.

https://savingcentbycent.com/2021/01/05/how-to-create-a-budget-free-budget-worksheet/

#budget #budgetweekly #budgetmonthly #weeklybudget #weeklybudgeting #monthlybudget #monthlybudgeting #spendingplan #howtobudget #howtobudgetmoney #howtobudget101 #howtobudgetyourmoney #howtobudgetandsave
It's important to take care of your needs and the It's important to take care of your needs and the needs of your family first. So before you spend any money, make sure that your martgage/rent, food/groceries, utilities, and transportation are taken care of first. 

Message me or use the link to get the free budget worksheet to help you manage your expenses.

https://savingcentbycent.com/2021/01/05/how-to-create-a-budget-free-budget-worksheet/
When you are creating a budget, write down your to When you are creating a budget, write down your total income from your paycheck, then list out and minus all of your expenses that you need to pay from that paycheck. Allocate every dollar to a category, whether it is paying off debt or saving money.This becomes is a zero-based budget.

To keep track of your budget and what you actually spend, use the link below or message me for a FREE budget worksheet to get you started.

https://savingcentbycent.com/2021/01/05/how-to-create-a-budget-free-budget-worksheet/

#budgeting #budgeting101 #budgettips
#budget #budgetworksheet #budgetbypaycheck #budgetingtips #createabudget #budgettip
I re-did the spice cupboard in my kitchen and put I re-did the spice cupboard in my kitchen and put in new spice racks, and I love it! The cupboard is now clean, organized, and more functional. I labeled the spice containers so that when I pull out the spice rack, I can actually see and find the spices more quickly that I need for my meals.

Before these spice racks, the cupboard was disorganized. I would reach to the back and grab a random bottle to see if it was what I needed and then put it back if it wasn't, and then try that again until I found the spice I needed. Now, I don't have to deal with that anymore, and I can easily find what I need.

If you need to organize your spices, check out these spice racks.

https://amzn.to/3Gcp5ly

(Affiliate link)

#spices #spicerack #spiceracks #spicecupboard #spiceorganization #
The KSL TV segment aired this morning! I took @ta The KSL TV segment aired this morning! I took @tamaravaifanua and @derek_photog along with me to the grocery store to do my 2-week grocery shopping.

I shared with them my tips on how I save money grocery shopping. By implementing even 1 or 2 of the tips shared, you will lower the amount of money you spend on groceries. Every little amount helps, especially since food prices have risen. I hope these tips will help you and others to save a little more money at the store.

What is one way you save money on groceries?

https://ksltv.com/520164/utah-mom-shares-grocery-budgeting-tips/

#groceries #grocerybudget #grocerystores #savemoneytips #savingmoney #savingmoneytips #grocerytips #grocerybudgeting #utahmom #utahmomblogger
This morning, I did my 2-week grocery shopping tri This morning, I did my 2-week grocery shopping trip, and @tamaravaifanua and Derek from @kslnews came along with me. 

I shared with them tips on how to save money on groceries and what I do to keep my grocery budget at $625 per month. With the price of food being way up, even I have had to raise my grocery budget this year. But these tips I share can help you to lower your grocery budget. 

This segment will be airing February 2nd at 5:30am. I know that is super early for some of you, so I'll be sure to share a link after it airs.

#ksl #ksltv #grocerybudget #groceryshopping #groceries #grocerystore #grocerylist #groceryhaul #savemoneyonfood #savemoneyongroceries
If you want to keep things running smoothly with y If you want to keep things running smoothly with your budget, then you need to look at and review it weekly, not monthly. 

Every week, check to see how you are doing, if you are on track, or if you have spent too much and gone over budget. This is the time to re-adjust what you are doing in order to stay on track or get back on track.

Use the link to check out more tips on how to budget, plus get a free budget worksheet.

https://savingcentbycent.com/2021/01/05/how-to-create-a-budget-free-budget-worksheet/

#budget #budgetweekly #budgetmonthly #weeklybudget #weeklybudgeting #monthlybudget #monthlybudgeting #spendingplan #howtobudget #howtobudgetmoney #howtobudget101 #howtobudgetyourmoney #howtobudgetandsave
It's important to take care of your needs and the It's important to take care of your needs and the needs of your family first. So before you spend any money, make sure that your martgage/rent, food/groceries, utilities, and transportation are taken care of first. 

Message me or use the link to get the free budget worksheet to help you manage your expenses.

https://savingcentbycent.com/2021/01/05/how-to-create-a-budget-free-budget-worksheet/
When you are creating a budget, write down your to When you are creating a budget, write down your total income from your paycheck, then list out and minus all of your expenses that you need to pay from that paycheck. Allocate every dollar to a category, whether it is paying off debt or saving money.This becomes is a zero-based budget.

To keep track of your budget and what you actually spend, use the link below or message me for a FREE budget worksheet to get you started.

https://savingcentbycent.com/2021/01/05/how-to-create-a-budget-free-budget-worksheet/

#budgeting #budgeting101 #budgettips
#budget #budgetworksheet #budgetbypaycheck #budgetingtips #createabudget #budgettip
I re-did the spice cupboard in my kitchen and put I re-did the spice cupboard in my kitchen and put in new spice racks, and I love it! The cupboard is now clean, organized, and more functional. I labeled the spice containers so that when I pull out the spice rack, I can actually see and find the spices more quickly that I need for my meals.

Before these spice racks, the cupboard was disorganized. I would reach to the back and grab a random bottle to see if it was what I needed and then put it back if it wasn't, and then try that again until I found the spice I needed. Now, I don't have to deal with that anymore, and I can easily find what I need.

If you need to organize your spices, check out these spice racks.

https://amzn.to/3Gcp5ly

(Affiliate link)

#spices #spicerack #spiceracks #spicecupboard #spiceorganization #
The KSL TV segment aired this morning! I took @ta The KSL TV segment aired this morning! I took @tamaravaifanua and @derek_photog along with me to the grocery store to do my 2-week grocery shopping.

I shared with them my tips on how I save money grocery shopping. By implementing even 1 or 2 of the tips shared, you will lower the amount of money you spend on groceries. Every little amount helps, especially since food prices have risen. I hope these tips will help you and others to save a little more money at the store.

What is one way you save money on groceries?

https://ksltv.com/520164/utah-mom-shares-grocery-budgeting-tips/

#groceries #grocerybudget #grocerystores #savemoneytips #savingmoney #savingmoneytips #grocerytips #grocerybudgeting #utahmom #utahmomblogger
This morning, I did my 2-week grocery shopping tri This morning, I did my 2-week grocery shopping trip, and @tamaravaifanua and Derek from @kslnews came along with me. 

I shared with them tips on how to save money on groceries and what I do to keep my grocery budget at $625 per month. With the price of food being way up, even I have had to raise my grocery budget this year. But these tips I share can help you to lower your grocery budget. 

This segment will be airing February 2nd at 5:30am. I know that is super early for some of you, so I'll be sure to share a link after it airs.

#ksl #ksltv #grocerybudget #groceryshopping #groceries #grocerystore #grocerylist #groceryhaul #savemoneyonfood #savemoneyongroceries
If you want to keep things running smoothly with y If you want to keep things running smoothly with your budget, then you need to look at and review it weekly, not monthly. 

Every week, check to see how you are doing, if you are on track, or if you have spent too much and gone over budget. This is the time to re-adjust what you are doing in order to stay on track or get back on track.

Use the link to check out more tips on how to budget, plus get a free budget worksheet.

https://savingcentbycent.com/2021/01/05/how-to-create-a-budget-free-budget-worksheet/

#budget #budgetweekly #budgetmonthly #weeklybudget #weeklybudgeting #monthlybudget #monthlybudgeting #spendingplan #howtobudget #howtobudgetmoney #howtobudget101 #howtobudgetyourmoney #howtobudgetandsave
It's important to take care of your needs and the It's important to take care of your needs and the needs of your family first. So before you spend any money, make sure that your martgage/rent, food/groceries, utilities, and transportation are taken care of first. 

Message me or use the link to get the free budget worksheet to help you manage your expenses.

https://savingcentbycent.com/2021/01/05/how-to-create-a-budget-free-budget-worksheet/
When you are creating a budget, write down your to When you are creating a budget, write down your total income from your paycheck, then list out and minus all of your expenses that you need to pay from that paycheck. Allocate every dollar to a category, whether it is paying off debt or saving money.This becomes is a zero-based budget.

To keep track of your budget and what you actually spend, use the link below or message me for a FREE budget worksheet to get you started.

https://savingcentbycent.com/2021/01/05/how-to-create-a-budget-free-budget-worksheet/

#budgeting #budgeting101 #budgettips
#budget #budgetworksheet #budgetbypaycheck #budgetingtips #createabudget #budgettip
I re-did the spice cupboard in my kitchen and put I re-did the spice cupboard in my kitchen and put in new spice racks, and I love it! The cupboard is now clean, organized, and more functional. I labeled the spice containers so that when I pull out the spice rack, I can actually see and find the spices more quickly that I need for my meals.

Before these spice racks, the cupboard was disorganized. I would reach to the back and grab a random bottle to see if it was what I needed and then put it back if it wasn't, and then try that again until I found the spice I needed. Now, I don't have to deal with that anymore, and I can easily find what I need.

If you need to organize your spices, check out these spice racks.

https://amzn.to/3Gcp5ly

(Affiliate link)

#spices #spicerack #spiceracks #spicecupboard #spiceorganization #

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