Assess the situation
The first thing that you should do is assess the situation. How much money did you spend? Do you want the same amount in the emergency fund or do you want to put more in there? In a time like this, you should have a level head and think about how much you want in your new emergency fund.
Get focused
The next thing that you need to do is get focused. You have figured out the amount that you want to have in the emergency fund. Now is the time for you to get focused. How do you expect to make the money for you emergency fund? When do you want to have it replenished? Are you ready to sacrifice? Depending on when you want to have your emergency fund replenished, you may have to change some things for a little while. You may have to get a part-time job on the weekends. You might also have to change your budget up for a few weeks until you get your emergency fund full again.
Time to hustle
It’s time to get your hustle on. Side hustles are a way that can help you get your emergency fund goal quicker. There are hundreds of side hustles that you can do to generate extra money. Washing cars, selling things on Craigslist, doing yard work and filling out surveys are a few of them. One of the side hustles that I did to help me make money for my emergency fund was to sell things on eBay. By doing that, I was able to save the amount that I set for myself much sooner than I had planned to.
Save the money
Now that you have figured out a side hustle that you like don’t forget to save that money and deposit it into your emergency fund. For a split second, you may see that extra money coming in and want to spend it on something or use it to pay off debt. Don’t do it. Remember, your plan is to get your emergency fund replenished again. Don’t use that money for anything else.
An emergency fund is vital for anyone. Things happen. It is always good to have that money as a cushion. Having an emergency fund can keep you out of debt. If you have to use yours, remember that you can replenish it again. If you’re focused and ready to work, it can be full sooner than later.
Jason Butler
Jason Butler is an Atlanta native, as well as businessman, blogger and teacher. Not only is Jason a prolific flipper, marketer, writer and side hustler his number of years in higher education and student support have given him expert knowledge in understanding the economics of the student loan industry.
I’ve never thought about that possibility. My emergency fund (currently) will cover six months’ expenses. But I’ve recently realised that I need it to cover at least 12 months plus some of the unknown risks that you mentioned.
One thing that I think is extremely important in figuring out that “magic” number for your emergency fund is how much are you truly willing to give up? To me, Internet and tv would not touch my finances in an emergency situation. I would cancel (I relaize there may be some restrictions). But other things like decreasing the times a week you consume alcohol/meat/fast food can really add up and can help get to a more obtainable emergency fund, and help that fund last longer. Great post!