You sold a bunch of stuff and made a decent chunk of change. Now it’s time to sock that away and touch it as little as possible.
This thousand bucks is your mini-emergency fund.
It’s not a full emergency fund for a couple of reasons:
- With all your payments and your limited income, it would probably take you YEARS to develop a $10,000+ emergency fund. By that point, you’d get tired of all the saving and you’d probably quit before you even started paying off your debt.
- $1,000 give you just enough buffer to get through even those larger emergencies (albeit creatively!), but it’s a small enough amount that you can get there fairly simply and soon start tackling your debts!
Save up a grand, put it in a savings account in the bank. That’s it!
After this, it will be time to tackle your debts, save up a huge emergency fund, and then invest for your future!
But, let’s take this one step at a time.
First, saving up the $1,000. Get this done and you can move onto the next step!
Want to learn more? Check out the helpful posts below!
Helpful Resources
How to Save Up $1,000 in Just 4 Weeks (Without Working a Second Job)
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6 Reasons You Should Always Have $1,000 in the Bank
What do most people do when they have a $1,000 emergency? Based on my observations over the years, they… Set…
How to Build an Emergency Fund From Scratch
This time last year, CNBC reported on a startling study that stated 62% of Americans didn’t have enough emergency savings…
10 Extreme Tips to Cut Your Spending in Half
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11 Comments
To save up my $1,000, I sold my bedroom set, my car, and I took on many little side jobs.
How about you? How will you save up your $1,000 emergency fund?
I guess we would have to sell our car- it’s the only thing of value we have though we could use it to et a side hustle. Hmmmm…
Might be worth it to get your mini-emergency fund in place and get the whole process started! Or like in our situation, we could just sell a bunch of kids stuff!!
In order to increase my savings, I would sell things we don’t need anymore, cut down unnecessary spending, and also pick up some extra hours at work when possible to reach my savings goal more quickly.
To save up my $1,000, I cut down nonessential spending(like my weekly trips to Target, haha 🙂 and picked up extra hours at work(not the most popular thing to do but it was worth it to achieve my goal more quickly).
Ha, good! Target is such a money-suck for many people. It’s not an amusement park, people!! 🙂
$1000 will look small until an emergency crops up and you realise that even in cases where this would not have completely solved the problem it would have ameliorated the situation on ground and saved you a ton of headache.Eberyone pursuing a financial freedom goal should see this as a stepping stone to a full emergency fund.
I lived with $1,000 in my account for an entire year. During that time, I experienced ice damming and water leaking into my house and my car broke down twice. Each one of those events could have cost more than $1,000 if I had more padding in that emergency fund. But, in every occurrence, I was able to find a way to get back on my feet for less than $1,000…because I had to.
The $1,000 emergency fund isn’t so much that you spend unwisely, but it’s just enough to get you through…which is EXACTLY what you need when you’re getting out of debt!
On point Derek
Good advice! Although it’s true that a larger amount is better in the long run, beginning with $1000 teaches better habits and is an achievable amount for most people.
We’ve put our stimulus money into savings which kinda goes against the idea of stimulating the economy, but we didn’t really want to spend it.