Do you have an emergency fund?
If the answer is yes, GOOD! I’m proud of you.
If your answer was no, you’re gonna want to pay attention.
Today I want to give you 3 quick tips on saving your first (or next) THOUSAND DOLLARS for your emergency fund.
#1 Open a Separate Savings Account!
And when I say separate, I mean separate! If you’re like I was at the beginning of my journey, you may have a bad habit of “saving” money in your linked savings account, only to conveniently “borrow” back from it when there’s a sale a Target. Because the money was so convenient and easy to access at any time, I had virtually nothing stopping me from splurging.
Instead, I challenge you to open a separate savings account, preferably with an Online Bank like Marcus or Synchrony (not an affiliate link, btw). You get a better rate on your savings while it’s there, and since it’s not connected to your normal checking or credit card accounts, you aren’t as tempted.
#2 Make it Automatic!
If you are paid with direct deposit by your employer, this one is a NO BRAINER. Set it up so that 10% of your weekly or monthly paycheck go directly to your savings. Since your savings account is now completely separate (from step one), you won’t see the money come out of your account, and you’re saving with virtually zero effort on your part.
You’re paying yourself first every time.
#3 Make a Bet with Someone Mean!
If you’re serious about saving money and keeping it there, you need someone who is willing and able to call you out if you try to cheat or quit. Someone like a trusted mentor, teacher, or even a friend who is good with their money.
Your accountability partner should be someone you admire and respect, someone you don’t want to disappoint, and someone who isn’t afraid to challenge you should you be tempted to spend some of the money on a nonemergency.
So… Are you in?
I hope this has given you some inspiration and the tactical ideas on ways to boost your savings or even establish your first emergency fund!