How to Save $1,000 for an Emergency Money Fund in 90 Days or Less

How to Save $1,000 in an Emergency Fund in 90 Days or Less

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If you wish you had a fund for emergency expenses, then this article is for you. The last thing you need is to have something like your fridge quit on you with no way to pay for it.

Determine Where to Put Your Emergency Fund

It really doesn’t matter where you put your emergency fund, as long as it’s somewhere safe and without fees. You don’t need to be worried about interest rates or trying to invest it, since this is for an emergency fund. An emergency fund is more for peace of mind for unexpected expenses.

Choose an institution where it’s easy for you to access the funds and add money. If you are in the U.S., a bank or credit union that is insured by the FDIC is a great choice.

Start Saving For Your Emergency Fund

The best way to get started saving for your emergency fund is to automate the process. Many banks and credit unions will let you set-up recurring, automatic transfers from one account to another.

If you get paid from your employer every two weeks, set up a recurring, automatic transfer for every two weeks to your emergency fund account. Saving $1,000 in 90 days works out to be about $11.11 per day.  Considering there are 6 two-week pay periods during a 90 day time frame, setting aside $170 per paycheck would mean that you would have $1,020 at the end of 12 weeks.

If saving this amount isn’t realistic for you right now, consider working some overtime or taking on some extra temporary work to build the fund. If neither of those are an option, consider extending the time frame for saving to make the transfers more achievable. The most important thing is that you start saving at least something.

If you need to create a budget as part of your planning, check out my 7 Steps to Create a Personal Budget blog post.

Only Use the Fund in the Event of An Emergency

If you have been really thinking about getting a new cell phone or the latest digital watch – those aren’t emergencies! These are not what an emergency fund was designed for. To help keep from spending the fund on non-emergency expenses, you should make a list of what you consider to be an emergency for this fund.

You’re working hard at saving this money, so you want to only spend it in the case of an actual emergency. A qualified emergency could include things like car repairs, replacing or repairing broken appliances, or repairing roof damage from a storm. This list could go on and on, depending on your current situation and personal finances.

Reach At Least $1,000 in Your Emergency Fund

If you are able to commit to saving $170 every other week and you don’t have any emergency expenses come up, then you will have at least $1,000 90 days later. Congratulate yourself for taking this important step towards financial independence! This is a great achievement that not everyone is able to follow through with.

Do not be upset if you have to use your fund for an emergency – that’s what it’s for! If you have to spend some or all of the funds for an emergency, create a plan to build the fund back up to $1,000 in a time frame that works for you, ideally 90 days or less.

Next Steps

If you have reached your $1,000 emergency fund savings goals and are able to continue saving and want to do so, then by all means continue saving. You could even open up a different account once you’ve reached the $1,000 emergency fund level. If there’s something else you want to save for, like a vacation, you could create a “vacation” fund and start contributing regular amounts to it like you did for your emergency fund.

You may have also heard of Dave Ramsey’s 7 Baby Steps Plan. He suggests saving for emergencies, paying off debt for good, and building wealth with the following steps:

  1. Save $1,000 for your starter emergency fund.
  2. Pay off all debt, except for your house.
  3. Save 3-6 months of expenses in an emergency fund.
  4. Invest 15% of your household income in retirement.
  5. Save for you children’s college fund.
  6. Pay off your home.
  7. Build wealth and give.

He has a best-selling book called The Total Money Makeover: A Proven Plan for Financial Fitness that you might add to your reading list.

Don’t delay – the faster you get started saving, the faster you’ll have your emergency fund!

Check out some of my other posts on saving, making, and investing money:

Disclaimer: This information is intended for educational purposes and is not tailored for the needs of any specific investor. It is important to conduct your own analysis and research before making any investment.  It is recommended to independently research and verify or seek financial advice from a professional in connection with any information on this website before using it to make an investment decision or otherwise.

How to Save $1,000 for an Emergency Fund in 90 Days or Less
How to Save $1,000 for an Emergency Fund in 90 Days or Less

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