5 Steps to Building a $1000 Emergency Fund

 

5 Steps to Building a $1000 Emergency FundHaving a $1000 emergency fund is a smart way to be ready for anything, well financially ready at least. Here is how to get it done.

  1. First, plan where you are going to keep your money. Do you want to open a savings account at the bank? Do you want to keep cash in the house? Decide on a place that you can put it where you will not be tempted to withdraw from the funds unless you really need it. And keep it somewhere safe.
  2. Take a look at your current budget to decide how much you can afford to put aside each week. Is it $10 or $50? Be realistic here. You will get to your goal, whether it’s in 90 days or 6 months.
  3. Now that you know how much, plan out the time frame to get you to $1000. So, if you are saving $20 a week, you will reach your goal in 50 weeks, almost year. It may seem like a long time, but it’s worth it! Don’t be discouraged, because even half way through you will feel like you have accomplished something when you have a $500 emergency fund. So plan it in a way that will encourage you to stick to it. Maybe map it out on a calendar, keep track on your phone, or draw up a chart. You know yourself the best, so go with something that will keep you motivated and keep your eye on the prize!
  4. Hit your goal!!! Sticking to your plan and hitting your goal is such a great accomplishment! Now you will have the funds to fix your car when suddenly quits on you, or pay for vet bills when your dog eats something he shouldn’t.
  5. Continue saving. Since you were able to stash away $20 or $50 a paycheck for a while, keep it going! This is a great way to pay off your credit card debt, or add to your savings account. You didn’t miss it before, so keep it up!!
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