How to Build a $1,000 Emergency Fund in 90 Days
by CashTime Loan Centers
While saving slowly over time has its place, many people are energized by savings challenges. One way to really feel accomplished is to set the goal of saving a $1,000 emergency fund in 90 days. Here are some ways to make this dream a reality.
Make a Plan
$1,000 in 90 days amounts to essentially saving $11 a day, and this cannot happen by accident in most families. What are some ways you could pick up this cash and make sure it doesn’t all go to expenses? Consider these options and brainstorm more for yourself:
• Try ridesharing or other side businesses as long as you don’t have to invest money at the beginning (i.e. only do ridesharing if you already have an adequate car in good repair; don’t spend money to make money!)
• Pick up babysitting gigs or home maintenance gigs on the weekends for friends, neighbors, or family.
• Ask for extra tasks at work in exchange for more hours or overtime.
• Temporarily cut out a luxury from your life (remember, the goal isn’t to cut the things you love for a long time!) or try adapting your luxury: if you are a big fan of snacks from the vending machine at work, try buying a big pack of them from the grocery store and bringing one as a treat every day or two.
• Make sure every major purchase is made using coupons or rebates, and comparison shop before you buy something.
• Do a cupboard clean-out: if you have any dry goods or canned goods that you can eat through, you can bank the money you would have spent on those meals.
Start a Designated Emergency Savings Account
By putting all emergency fund money in a separate account, you are much less tempted to spend it in situations that aren’t really emergencies. Over time, you’ll see how helpful it is to know that money is there even if you don’t decide to spend it at a given time.
Put the Plan in Action!
For 90 days, most of us can live pretty frugally – see if there are even small things, like changing the air conditioning or heat just a little so that your bill will be lower. The goal isn’t to change your whole life forever, but to notice what things do have an impact and change them temporarily to get to a more secure financial footing.
If after your 90 days you have $1,000, celebrate and congratulate yourself for improving your financial health. If you end up with less than $1,000, you still have an emergency nest egg! Continue to add to it at a slightly lowered rate after the 90 days, using whatever methods you tried that are most sustainable long-term.