The infamous emergency fund! Most people know what it is but do you have anything saved for a rainy day? Right now, I have a little over $1000 saved in case I need it. Why not 3 - 6 months like you read and hear about from financial experts?
Well, the short answer is because I have debt. Would you borrow money at, let's say, 6% interest to fund an emergency fund? I wouldn't. Especially not when it is only making 1.30% sitting in a savings account. My small emergency fund won't be like that forever. I will eventually have a 3 - 6 month emergency fund but I won't start working on that until I have tackled most if not all of my debt. The way the job market is now, if I were to lose my job, it would not be difficult to find another one even if it was something I didn't love to do. So, I feel comfortable having only a little over $1000 to fall back on.
When I first started out, I scraped up that $1000 starter emergency fund very quickly. I sold some things around the house. I drove for Uber and Lyft. I did little side jobs. I worked whatever I could to make that extra money. When you have a goal set, you have to have laser focus on accomplishing it. If you follow Money Talk With Tiff on social media, you will see a "Money Saving Chart" that I use weekly. With each week, you only cross off one amount from the paper. The amounts range from $0 - $60. By the end of 52 weeks, you will have $1000. I am currently on week 5 but it is not too late to join the challenge!
I challenge all my readers to save $1000 as fast as they can. Sell some items on Facebook, Letgo, or OfferUp. Sign up for Uber or Lyft. If driving is not your thing, find other side hustles you can do. A website that I really like is Rat Race Rebellion. They are always posting work from home jobs or side hustles that you can do either full time or at your leisure. Once you reach $1000, please let me know either by commenting below or reaching out on my social media pages. I would love to hear about your progress! You can do it!