Hello my lovelies,

I’m here today to talk to you about something that is crucial for your financial stability: emergency funds. We all know that life is unpredictable and can sometimes throw a curveball at us when we least expect it. That’s where having a solid emergency fund comes in handy! In this blog, we’ll be going over some do’s and don’ts of building an emergency fund, as well as tips from financial experts to help you through the process.

Do: Set Realistic Goals 💡

The first thing you need to do when building an emergency fund is to set realistic goals for yourself. Experts suggest that you save 3-6 months’ worth of expenses in your emergency fund. However, this amount may not be possible for everyone to save up in a short amount of time. That’s why it’s essential to set realistic goals that will motivate you. Start by setting a small goal of saving $500 or $1000 and work your way up from there. The key is consistency!

A piggy bank with a dollar bill flying into it

Don’t: Use Your Emergency Fund for Non-Emergencies 🚫

This might seem like an obvious one, but it’s essential to mention. Your emergency fund should only be used for true emergencies. Don’t be tempted to dip into it for non-emergencies like a new outfit or a weekend trip. These are not emergencies and can wait until you have enough money saved up in another account.

A cartoon of a hand taking money out of an emergency fund jar for non-emergencies

Do: Automate Your Savings 🤖

One of the easiest ways to build up your emergency fund is to automate your savings. Set up an automatic transfer from your checking account to your emergency fund each month. This way, you won’t even have to think about saving, and your emergency fund will continue to grow without you having to lift a finger.

A picture of a calendar with a red circle around "auto transfer to savings" reminder

Don’t: Make Excuses 🤥

It’s easy to make excuses for not saving money, but in the long run, it will only hurt you. Excuses like “I don’t make enough money” or “I’ll start saving next month” are just that: excuses. There is always something you can cut back on to save money, whether it’s skipping the morning latte or canceling a subscription you don’t use. Don’t let excuses hold you back from building a solid emergency fund.

A cartoon of a person holding up a sign that says "excuses" with crumpled up paper thrown around them

Do: Keep Your Emergency Fund Accessible 🚪

An emergency fund is only useful when you can access it when you need it. It’s crucial to keep your emergency fund in an easily accessible account like a high-yield savings account or money market account. These accounts offer a higher interest rate than a traditional checking account and will allow you to earn some extra cash while you save for emergencies.

A picture of a person opening a safe with a sign that says emergency fund inside

Don’t: Stop Saving Once You’ve Reached Your Goal ❌

Once you’ve reached your goal, that doesn’t mean you can stop saving. Emergencies can happen at any time, and you never know when you might need that extra cushion of cash. It’s recommended to continue saving and building up your emergency fund over time.

A cartoon of a person crossing the finish line and then turning back to keep running

And there you have it, my lovely readers, some do’s and don’ts of building an emergency fund. Remember always to set realistic goals, keep your emergency fund accessible, automate your savings, and never stop saving! With these tips, you’ll be on your way to financial stability in no time.

A picture of a person holding a sign that says "emergency fund" while standing on top of a pile of money