Bible Money Matters

Christian personal finance

Menu
    • About
    • Archives
    • Contact
    • Close
  • Making Money
      • Popular Articles

        • 50 Ways To Make Money: Maximizing, Creating And Increasing Your Income
        • 10 Weird And Unconventional Ways To Make Money
        • Making Money With A Blog (e-Book)
        • 10 Places To Sell Or Trade Your Unused (Or Broken) Electronics
        • Ways To Make Extra Money Series: 20 More Income Generating Ideas From Our Readers
        • Making Side Income Can Help Blunt The Impact Of Becoming A One Income Family
        • Earn Cash Back With Discover it® Credit Card
      • Recent Articles – Making Money

        • Best Sites Like Fiverr To Make Money As A Freelancer
        • 13 Of The Best Independent Contractor Jobs
        • 25 Of The Best Gig Economy Jobs
        • How To Make Money Blogging: Turn A Blog Into A Business
      • Categories

        • Making Money
        • Investing
        • Retirement
        • Jobs & Work LIfe
        • Money
        • Income
    • Close
  • Saving Money
      • Popular Articles

        • 50 Easy Ways To Save Money Every Month
        • 10 Weird And Unconventional Ways To Save Money
        • 10 Practical Ways To Save Money And Increase Your Net Worth
        • How To Save Money On Just About All Of Your Regular Monthly Bills
        • Ways To Watch TV Without Paying An Arm And A Leg For Cable TV
        • Save Money On Your Hospital Bill - Just By Asking
      • Recent Articles – Saving Money

        • How To Save $100k In 7 Practical Steps
        • Stairs App Review: Save And Invest To Earn 4-6% Interest
        • Honey Review: Save Money Automatically When You Shop Online
        • 9 Convincing Reasons Why You Need An Emergency Fund
      • Categories

        • Saving Money
        • Frugality
        • Planning
        • Finance
        • Saving For Retirement
        • Savings Accounts
    • Close
  • Banking
      • Best Rates For 2019

        • Best Credit Cards
        • Best Savings Accounts
        • Best Mortgage Rates
        • Best CD Rates
        • Best Brokerages
        • Free Credit Scores
      • Recent Reviews

        • TradeStation Review: Commission Free Stock And ETF Trades
        • Firstrade Review: Commission Free Trades on Stocks, Crypto, And Options
        • Cadre Real Estate Investing Review: Commercial Real Estate Investing
        • Axos Self Directed Trading Review: Invest, Trade Stocks For Free
      • Categories

        • Bank & Software Reviews
        • Investing
        • Credit
        • Banking
        • Mortgage
        • Insurance
        • Family Budget
    • Close
  • Recommended
  • Video
    • Close

How To Build Your Fully Funded Emergency Fund In Less Than A Year

By John Frainee 2 Comments - The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited February 10, 2014.

Share12
Pin4
Tweet25
Share5
46 Shares

Close your eyes for a moment.  Okay, now imagine… wait, open your eyes. Great, now you can’t read this.

Have your eyes open yet? Good. Now imagine with your eyes open that all of the sudden you received a medical bill for $2,000 in the mail. Does panic set in? Feel like foaming at the mouth? Want to run away to Fiji?

If you just freaked out, you probably don’t have an emergency fund.

It’s a scary thought to be without an emergency fund, especially when you’re honest with yourself about the dangers of living on this planet. No worries! I’m going to teach you how to build your fully funded emergency fund in less than a year. We did it, and you can too!

Fully Funded Emergency Fund

Quick Navigation

  • How To Build That Emergency Fund – Fast!
    • 1. Get rid of your non-mortgage debt first.
    • 2. Keep your expenses at a minimum.
    • 3. Stop investing. Temporarily!
    • 4. Sell stuff.
    • 5. Give extra money to your emergency fund!
  • You Can Do It! Here’s The Math.

How To Build That Emergency Fund – Fast!

Okay, here are a few tips on how you can expedite the process of building an emergency fund. Not all of these tips will apply to your situation, but take what you can!

1. Get rid of your non-mortgage debt first.

Before you get intense about building your fully funded emergency fund, you might want to think about getting rid of your non-mortgage debt first. Why? This will give you more cash-flow enabling you to bust out your emergency fund in no time.

Think about it. If you’re like many Americans, you have a car payment and perhaps some credit card debt. Those payments are tying your hands from making any real progress on building your emergency fund. Just imagine how much money you could put toward your fully funded emergency fund when you aren’t making payments – no more interest!

Dave Ramsey suggests keeping $1,000 in your beginner emergency fund before paying off your non-mortgage debt, then moving on to building your fully funded emergency fund.

2. Keep your expenses at a minimum.

If you want to build your emergency fund fast, you’re going to need to keep your lifestyle under control. Ask yourself what you really need, and do away with the wants.

When we were building our emergency fund, we lived without cable television. After we built our emergency fund, we were so used to living without it, we got Netflix on our computer instead! Think about how much money we’re saving every year!

Remember, now’s not the time to raise your expenses. You want to be spending significantly less than you’re making in order to build your rainy day fund in less than a year.

3. Stop investing. Temporarily!

When you have focused intensity toward one goal, you get more progress out of your hard work. Doing multiple things at once can be financial suicide!

That’s why I suggest stopping all your investing temporarily while you build your emergency fund. After all, if an emergency happens, what are you going to do? Pull from your 401k? You don’t even want to know about the fees and taxes associated there!

Focus all your financial energy (everything beyond budgeting for the essentials) on your emergency fund. You’ll be glad you did.

4. Sell stuff.

Some of you out there could live with one car instead of two. Some of you have a stereo speaker system that would destroy every drinking glass in your home if used at full power – you could live without that. Maybe you need to move down in house to have enough wiggle room to build your emergency fund.

Whatever your situation, find big ticket items that you can sell. Then, move on to the smaller things – they all add up!

5. Give extra money to your emergency fund!

You know that sweet check you got from grandpa so-and-so? Maybe instead of spending it on a new wardrobe, you could put it into your emergency fund. This will really help you get off the ground!

You Can Do It! Here’s The Math.

You might be saying, “Well that’s lovely, but can I really do all this mathematically?”

Good question. Let’s say you make $50,000 a year and spend $40,000 a year on necessities. You’re shooting for an emergency fund for 3 to 6 months worth of expenses (that’s what Dave Ramsey would recommend), so that means you’ll need somewhere between $10,000 and $20,000 in your emergency fund.

By taking the extra $10,000 per year you make and throwing it into an emergency fund account (like ING Direct), you’ve reached your goal in a year’s time! Now just imagine if you put all your extra money from unexpected sources into your emergency fund. Also imagine you sold some stuff you really don’t need. You’ll be getting closer to 6 months worth of expenses! Amazing!

See, you can do it! Now just go out and do it!

Share with us your emergency fund success stories and ask questions in the comments below!

Related Posts

  • An Emergency Fund Is More Than Just Money In The Bank: You May Have More Money Available Than You Think

    If having a small emergency fund of $1,000 or even $3,000 makes you nervous, keep in mind that you probably have much more money available…

  • $1000 To Start A Small Emergency Fund: Is It Enough?

    Some financial gurus suggest that you save $1000 for an emergency fund before getting in to hardcore debt reduction. Is it enough?

  • Paying Down Debt With Gazelle Intensity? How Much Of An Emergency Fund Do You Need?

    Should some families have a larger emergency fund than others? What is the right amount for your family to set aside in an emergency fund?

Share12
Pin4
Tweet25
Share5
46 Shares
Last Edited: 10th February 2014 The content of biblemoneymatters.com is for general information purposes only and does not constitute professional advice. Visitors to biblemoneymatters.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.

This article is about: Planning, Saving Money

About John Frainee

John Frainee is a personal finance writer at TheChristianDollar.com. His goal is to provide biblical financial principles that encourage people to live healthier lives. Beyond personal finance, John enjoys spending time with his wife and two crazy cats, playing a competitive game of Monopoly, and reading just about anything he can get his hands on. You can also find him on Twitter and Facebook.

Comments

    Share Your Thoughts: Cancel reply

  1. David @ yesiamcheap says

    You are quite correct about keeping expenses to a minimum. It is hard to stop spending money, though! Perhaps this could be our New Year’s resolution!

    Reply
  2. UltimateSmartMoney says

    I’m not sure about temporarily stopping investing. If you are a long term investor, you should not have to worry about this. Your 401K plan should be long-term focused.

    Reply
Previous Post: Top 10 Ways To Catch Up On Retirement
Next Post: Cushion Your Holiday Spending With Year-End Tax Reduction Strategies
Discover Investment Platforms

Popular Posts

  • 21 Easy Ways To Earn Free Amazon Gift Cards
  • 10 Best Free Tax Filing Services And Software Online
  • 21 Apps That Pay You Real Money Fast
  • 17 TV Apps And Live TV Streaming Services To Watch TV Free
  • 30 Legit Online Jobs That Pay Well
  • 37 Easy Ways To Get Free Gift Cards
  • How To Get Free Stock
  • 40 Easy Ways To Get Free Money Fast
  • 21 Places To Read Free Books Online
  • 24 Legit Online Jobs
  • 17 Best Work From Home Jobs: A List Of Legit Online Jobs That Pay Well

Recent Posts

  • How To Save $100k In 7 Practical Steps
  • How to Save Money When Remodeling A Home
  • How To Hire A Contractor For Your Remodeling Project
  • Remembering 9/11 Years Later: Where Were You On That Fateful Day?
  • TradeStation Review: Commission Free Stock And ETF Trades
  • Firstrade Review: Commission Free Trades on Stocks, Crypto, And Options
  • Cadre Real Estate Investing Review: Commercial Real Estate Investing
  • Best Sites Like Fiverr To Make Money As A Freelancer
  • Axos Self Directed Trading Review: Invest, Trade Stocks For Free
  • 30 Quotes About Easter And Resurrection: He Is Risen!

Disclaimer

The information contained in BibleMoneyMatters.com is for general information or entertainment purposes only and does not constitute professional financial advice. Please contact an independent financial professional for advice regarding your specific situation.

In accordance with FTC guidelines, we state that we have a financial relationship with some of the companies mentioned in this website. This may include receiving access to free products and services for product and service reviews and giveaways.

Any references to third party products, rates, or websites are subject to change without notice. We do our best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.

Amazon and the Amazon logo are trademarks of Amazon.com, Inc. or its affiliates.

We respect your privacy: Privacy Policy.

Thanks for visiting!

Bible Money Matters - Seen On These Sites and more..
Bible Money Matters is a personal finance, entrepreneurship and investing community. Give more, save more and live more.

Copyright © 2023 · Bible Money Matters | Sitemap | Advertise | Privacy Policy