It Is essential for you to have an emergency fund if you don’t already have one.  Why?  What if you hit a pothole and need a new tire?  Suppose something in your house breaks and you have to fix it?  How about an unexpected expense that isn’t covered by insurance?  You need AT LEAST $1,000 to start.  Once you have your $1,000 you also need to add to it monthly.  So, budget for that.

Eventually, you want to strive for 3 to 12 months’ worth of money in your fund.  As I’ve posted, I had to put a new roof on unexpectedly.  That was a huge hit to my emergency fund.  But I still have over 3 months left over and am working to rebuild my fund now.

Okay, I’ve convinced you.  But, how do you find ways to fund your emergency fund? I’m aware that if you’re struggling to pay your bills, you think saving money is next to impossible.  It’s not.  Here are some trade-offs you can make to have a few bucks to save. 

Stop buying coffee every morning on your way to work. Make it yourself and take it with you in an insulated bottle.  Have a yard sale to get rid of things you don’t need or want anymore.  Here’s a biggie, QUIT EATING OUT!!!  Bring your lunch to work instead of buying something.  If you get a tax refund, SAVE THE ENTIRE amount into your emergency fund.  Shop annually for premiums on homeowners/renters and auto insurance. Use an insurance broker to help you find better rates on what you’re paying.  Use coupons for grocery shopping and/or go to discount grocery stores.  Shop thrift stores.  Cut out anything that’s not absolutely necessary.  It’s time to determine what is actually a need instead of a want. Wants are out, but needs stay in.

Moral of the story:

You can find money to fund your emergency fund if you try. You’ll be surprised at how much you can save when you really put your mind to it.  And if you don’t have one now, it’s time to start.  I found that once I had sufficient funds, I pretty much stopped having dire emergencies.  That’s because if I had one, I had the money to cover the expense.  Then they weren’t emergencies anymore.