12 January 2023

How I Saved Up a 6 Month Emergency Fund

I started Dave Ramsey's baby steps a few months before the pandemic. That was honestly such a blessing for so many different reasons. I had already checked off Baby Step 1 and was making major headway with Baby Step 2 - as in I was pretty much there - and then the pandemic happened. In the blink of an eye I was furloughed, moving to my parent's house to escape the bleakness of the city, and was completely overwhelmed and worried for the future. While my finances could have been better, they could have been much worse and luckily I was able to float my way through without having to go into debt. My two biggest takeaways were that I never wanted to be in a position like that ever again and that a $1000 emergency fund wasn't going to cut it. Once I was in a more stable financial spot I quickly finished Baby Step 2 and prioritized Baby Step 3 - my 6 month emergency fund. Below are four things I did to build up my 6 month emergency fund before my target date! 

I religiously used the Everydollar app to create a budget and stuck to it. Any extra money that came in went right to my emergency fund bucket. I still use this app on a daily basis and it keeps me on the straight and narrow. 

I counted every penny - literally! I didn't have time for a side hustle, so instead I did things like roll coins, cut coupons, and really cut back on all discretionary spending. While I ran out of coins to roll, I still use coupons and keep my discretionary spending low-ish. 

I used Rachel Cruze's Emergency fund tracker. I love checking items off a list, and coloring in each line of a jar felt like a mini celebration. Having a visual of my progress really kept me on track and motivated. I've been using her Down Payment fund tracker to keep my focused on my bigger dream of owning a house! 

I celebrated each time I finished an emergency fund month. Treating myself each time I saved up a emergency fun month was great. I felt like I really earned a reward and I cherished each treat I got myself! 

ARS xx

F O L L O W

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