Ways to Build a $1000 Emergency Fund

$1k savings is exactly what it is called, a $1k emergency savings. It is for dire emergencies only! Another emergency savings for monthly expenses (what I like to call: Help me I've hit a major life emergency savings) is something different. Those funds should be saved separate...but that is a completely different conversation and we will talk about that another day.

Here are several ways that you can help you reach your emergency $1k savings goal fast:

Cancel unused subscriptions

Do you even use your Hulu account? How about that online magazine? Whatever it is, cancel it! These subscriptions are coming out of your bank account faithfully every single month and you probably didn't even realize it. 

Cut the cable

You’d be surprised by how long you can survive only on WIFI. If it wasn't for my son, I wouldn't even turn on the TV. He watches the exact same show on Netflix every single day and for 8.99 a month I have no problem with that. Depending on your cable provider, your WIFI can be from $40-$90/month. And don't fall into the trap of "what if we only charged you an additional $30/month and you get all supreme channels"? Its a trap! Don't do it!  They forgot to tell you about the additional service fees and box rentals that come along with it. DON'T FALL FOR IT!

Call your car insurance company

Ask them to lower your premiums. Talk about how long you've been their customer, how fantastic you are, and how much money you've paid them...blah blah blah lol. Also, do your research. What are their competitors willing to charge you? Ask them if they can beat that price. If they can't beat it, ask that they match it.

Cut the gym membership

I mean, I'm all for healthy living and getting fit. But, this only works if you are actually USING your membership! That is a monthly fee that’s comes out of your bank account every single month and the gyms love it, especially if you’re not in their gym using their equipment.

Find a place to save the funds!

If you already have an account open for your emergency fund, you can skip to step 4. But if you’re not sure where to put your emergency fund, read on…

People sometimes spend way too much time agonizing over where to put their emergency fund. The thing is, it truly doesn’t matter all that much so long as you pick somewhere that’s safe and without fees.

If you’re starting from zero like I did, even a piggy bank, old purse, or jar that you hide away in the house will work until you can get an account set up somewhere.

Don’t worry about interest rates, earning money with it, and or investing it. (Definitely don’t invest it.) The goal isn’t to make money with an emergency fund; it’s to prevent debt and provide safety. Think of it as an investment in your peace of mind instead.

Let’s talk about spending less first.

While you’re at it, look at big monthly budget items too. What are your typical bills like each month? Maybe there’s one or two you could cut back on, get better deals on, or put on vacation hold temporarily.

Keep this in mind as your emergency fund grows.

As you begin making progress and transferring money to your emergency fund, it’s important to keep this in mind: emergency funds are for emergencies — and you get to decide what an emergency is. In fact, the time to do exactly that is now. Before there’s an emergency.

Take a few minutes (with your spouse or significant other if you share finances) and make a written list of the things you plan to consider an emergency. Put it in writing, and keep it somewhere you can refer to it easily. This will keep your emergency fund available for the things you’ve decided are true emergencies vs. being tempted to spend out of frustration, excitement at having a good amount available, or out of boredom on things like pizza. You’ll have worked hard to get it funded, so you’ll want to keep it that way.

Customize the plan to fill your $1000 baby emergency fund.

Let’s think about this a minute. $1000 within 90 days breaks down to just over $11.11 per day. That’s the amount you need to set aside to reach your $1000 baby emergency fund goal.

If that amount sounds completely doable to you right now…

Mark your calendar to do a transfer to your emergency fund every day for the next 90 days. (Of course, you can do it in bigger chunks & fewer transfers instead if that’s easier, but it can be motivating to watch your fund grow on a daily basis too.

Save it and be done!

Boom! Just like that...you are ready for an emergency!