How to Build and Maintain an Emergency Fund

“Remaining calm in times of desperation makes way for opportunity." - Simon Sinek

Insights from a Certified Money Coach:

🚨 Let’s Get Real: Could You Handle an Emergency Tomorrow?

Alright, I’ll just come out and ask - if your car carked it tomorrow or a surprise medical bill landed in your lap, would you be ready to deal with it?

If the thought makes your stomach do a little flip, you’re not alone. Seriously, been there, done that, got the stress wrinkles to prove it.

There was a time when I didn’t have a single cent set aside for life’s curveballs.

Every unexpected expense felt like a punch in the gut, and honestly?

It was exhausting.

But here’s the thing - building an emergency fund isn’t some impossible, grown-up magic trick.

It’s actually doable.

And once you take those first steps, it feels like… well, like you’ve slipped on a life jacket in the middle of a storm. 🌊

Let’s talk about how to make that happen.

I’m sharing my personal blueprint for creating an emergency fund that’ll give you peace of mind (and maybe even help you sleep through the night).

Ready? Let’s dive in. 🐠

Step 1: Find Your “Why”

First things first - let’s talk about why you want an emergency fund.

True confession: when I first heard about this whole emergency fund business, I thought, “Ugh, another thing to add to my financial to-do list.”

But then I realised this wasn’t just about money - it was about freedom.

An emergency fund isn’t just a boring pile of cash.

It’s your safety net.

Your backup plan.

Your “I’ve got this” fund when life throws a tantrum.

For me, it was about not panicking every time my car made a strange noise or when the vet handed me a bill that made me question my life choices (but seriously, wouldn’t trade one of the fur babies for anything 🐾).

Take a sec to think about why you want an emergency fund.

Is it to avoid credit card debt when your tyres need replacing?

To have some breathing room if your fridge decides to retire early?

Once you’ve nailed your why, the how feels way less intimidating.

Step 2: Set a Goal That Doesn’t Make You Want to Cry

Let’s be real - hearing “save 3 to 6 months of living expenses” when you’ve got zero saved feels like climbing Everest in thongs. 🩴

Here’s the trick: start small. I began with $1,000.

That was my first milestone, and just hitting that felt like I could finally exhale.

From there, I aimed for one month of expenses, then three, then six. It’s like learning to run—you don’t sprint a marathon straight off the couch, right?

💡 Try This: Pick a number that feels doable - maybe $500, $1,000, or even just $200 to start.

Hit that first goal and celebrate like you’ve just won the lottery (okay, maybe a mini celebration, like a fancy coffee).

Step 3: Keep It Separate (Like, Really Separate)

Here’s a rookie mistake I made: I used to keep my emergency fund in the same account as my everyday spending money.

Spoiler alert: bad idea.

Why?

Because temptation is a crafty little bugger.

That “emergency fund” quickly turned into “let’s grab takeaway tonight” money. 🍕

The game-changer?

Opening a dedicated savings account just for emergencies.

Out of sight, out of mind.

And when I saw that balance creeping up, it gave me the warm fuzzies (and serious motivation to keep going).

💡 Try This: Open a high-interest savings account for your emergency fund.

Label it something obvious like “Emergency Fund” so you’re not tempted to raid it for concert tickets.

Step 4: Put Your Savings on Autopilot

True story: I’m a chronic overthinker who loves a good list, but even I forget to do things like transfer money into savings.

Life’s busy, okay?

That’s why automating my savings was a total lifesaver.

I started with $50 per paycheck, and honestly, I didn’t even notice it was gone.

It’s like sneaky savings magic. ✨

💡 Try This: Set up an automatic transfer for whatever amount you can manage - $25, $50, $100.

You won’t have to think about it, and it’ll add up faster than you expect.

Step 5: Look for Extra Cash

Once I got serious about my emergency fund, I started spotting opportunities to grow it everywhere.

Tax refund? Into the fund.

Work bonus? Straight to savings.

Sold some old clothes or random gadgets gathering dust?

Yep, you guessed it - emergency fund, baby!

💡 Try This: Keep an eye out for “bonus” money - tax returns, birthday cash, side hustle income - and send a chunk of it straight to your emergency fund.

Those one-off boosts make a bigger difference than you’d think.

Step 6: Use It When You Need It (But Rebuild It ASAP)

Here’s the thing—they call it an emergency fund for a reason.

Life happens.

You’ll need to dip into it at some point, and that’s okay.

That’s exactly what it’s there for.

I’ve used mine for unexpected vet bills (because of course my dog eats something she shouldn’t 🙄) and surprise car repairs.

And after each expense, I just went back to Step 2 - set a new goal and started rebuilding.

💡 Try This: If you need to dip into your fund, don’t stress.

Just treat it like a loan to yourself and come up with a plan to top it up again.

Step 7: Celebrate the Little Wins 🎉

Let’s be real - saving money isn’t exactly thrilling.

But every dollar you add to your emergency fund is a step closer to peace of mind, and that’s worth celebrating.

When I hit milestones (like my first $1,000), I’d treat myself.

Nothing wild - maybe a good meal or a weekend road trip - but those little rewards kept me motivated.

💡 Try This: Pick a few milestones and plan a small treat for each one.

Not only will it make saving more fun, but it’ll also remind you how far you’ve come.

Step 8: Keep the Momentum Going

Once you’ve reached your emergency fund goal, don’t just stop and forget about it.

Check in every so often—your life and expenses change, so your fund might need to grow too.

For me, I do a quick review twice a year to make sure I’m still on track.

If my expenses go up, I adjust my savings target.

Simple as that.

💡 Try This: Set a calendar reminder to check in on your emergency fund every six months.

Adjust as needed and keep that momentum rolling.

The Real Payoff: Peace of Mind

Here’s the truth: having an emergency fund isn’t about being rich or perfect with money.

It’s about giving yourself options.

When life throws you a curveball, you’ll know you can handle it.

That’s the gift of an emergency fund - it’s freedom, security, and a little less stress.

If you’re ready to start, just take that first step.

Set a goal, open that savings account, and watch your fund grow.

🌟 You’ve got this.

And trust me, future you will be so, so grateful.

While you’re here, be sure to snag my free workbook, Map the Gap.

It’s designed to make money goal setting a breeze - so easy and effective that it’s perfect for building into your regular routine. Even if you’re just dipping a perfectly polished toe into the world of Money Coaching, you’ll find it simple to dive in and get started. Trust me, the results will be so fabulous you’ll be amazed!

There’s nothing to lose except your fear of failure, so go ahead and grab your copy here.