How to Build a $1000 Emergency Fund in 90 Days

How to build a $1000 emergency fund in 90 days or less.Wish you had an emergency fund to fall back on? This step-by-step guide walks you through exactly how to build a $1,000 emergency fund in 90 days or less. (And you don’t have to be rich to make it happen.)

But first, a quick story:

“Your house needs a new air conditioner,” they said. I couldn’t believe it, or afford it if that were true. So I roasted in the 105+ degree Phoenix heat while I saved up $35 for a second opinion. (Yeah, I was pretty broke, and determined not to borrow.)

If only I’d known then what I know now about saving up money fast. I’d have had at least a $1000 emergency fund to draw from like I do now.

If you’d like to learn how to build a $1000 emergency fund in 90 days or less, read on!
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Emergencies and Disaster Preparedness: How To Prepare Your Family

How to prepare your family for emergencies of all kinds.Emergencies may not be high on the list of things we love to think about, but emergency preparedness is critical.

Before we get started with things you can do to create an emergency preparedness plan, here’s a quick emergency definition:

Simply put, an emergency is a sudden (and often unexpected) event that needs immediate action. This could be anything from sudden money problems to an earthquake, and everything in between.

Why plan now?

While no one wants to think they could lose their health, home, or job, ignoring the possibility doesn’t help. It only makes you wish you had prepared if something does happen.

To help with that, this article will cover many kinds of emergencies, broken down by types of emergency. It’ll provide examples of emergency situations, things you can do to prepare, and ideas for an emergency kit bag too. (It’s chock full of information, so pin it now so you can come back to it again later too!)

You’re already ahead of the game by looking into emergency preparedness. Give yourself a pat on the back for that — then read on to take the next steps.
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Pay Off Debt or Emergency Fund First: Solving the Dilemma

Solving the money dilemma: Pay off debt or emergency fund firstWhich should take priority: Pay off debt or emergency fund first? It can be hard to know what to do when two big things are vying for your money, so it’s a common question.

The answer is pretty simple: everyone absolutely needs an emergency fund, so build a baby emergency fund before focusing on debt reduction. (Unless you’ve got pay day loans hanging over your head, in which case make getting those taken care of your priority after food, shelter, & basic transportation.)

Of course, you’ll want to be sure to continue making the required minimum payments on your debt while working on your fund.

Let’s talk about why the order makes a difference next.

Pay off debt or emergency fund first: Why the order matters

When you’ve got debt hanging over your head, it’s completely natural to want to see that gone as quickly as possible. No one likes paying all that interest!

So at first glance, it may seem like it makes sense math-wise to focus on paying off debt first. After all, you’ll be saving money on interest by doing so.

But here’s the thing: Unexpected things happen all the time while you’re working on getting out of debt. Things like needing to pay a dental or vet bill, needing new brakes, etc. I’m sure you can think of some recent unexpected expenses.

If you don’t build at least a baby emergency fund first, when life happens you won’t be able to pay for it. Instead, you’ll turn to debt, feel even worse about yourself, and end up owing even more money — paying more interest over the long haul.

On other other hand, if you’ve gotten an emergency fund going first, when life happens you can use that money instead of going deeper into debt. You may still feel discouraged that you used that money you diligently saved up, but try to remember that it’s actually PROGRESS that you had the money available in the first place.

You’re using money you already have instead of ending up deeper in the hole. So definitely focus on that baby emergency fund first. Then work on paying off debt.

Other considerations

But there are some other details to consider, like “how much should my emergency fund be?” and other common questions. Let’s start by talking briefly about the different levels of both emergency funds and debts.
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Digit Review: Digit Savings App Automates Your Savings Like Magic

The painless way to build up your savings account with woman holding a cell phoneI pretty much never rave about things the way I’m about to now in this Digit review. (Unless you ask me about my trip to Antarctica – then I won’t shut up.) And I’m not doing so here for the $5 I’ll earn if you sign up through one of my links. I’m doing this Digit review because it’s a super awesome way to painlessly save money. I want you to know about it! Read on for an introduction to a money-related service that I think you’ll love.

Digit is like magic

Ever wish you could save money like magic? Without having to think about it or spend a bunch of time setting things up? Or maybe you’d like to have a friendly little buddy do the saving for you, all while making sure you don’t actually need that money for anything. (You know, except for your future self and family.)

That’s exactly what the Digit savings account does for you. It automates your savings like magic, while keeping you updated daily on your checking account balance to boot. As a bonus, Digit is likeable. (When have you ever heard that about a financial service?)
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