Note: This article to help you save for an emergency fund is from contributing writer, Tammy Strobel.

Have you ever felt like saving for an emergency fund was an unreachable goal? If you answered yes to that question, I can relate. Before I simplified my life, I held a fatalistic attitude about debt and money. In short, I didn’t believe I could have emergency savings or long-term goals. For example, I acquired over $30,000 in debt (for student loans and a car) because I thought I’d be in debt for the rest of my life. I remember thinking, “Why does another $10,000 of debt matter; especially if we’ll be in debt forever?”

Thankfully, my money mindset has changed. I learned that it was possible to “build my savings a little at a time.” For instance, saving a small amount each week – even if it was only $10 – was better than nothing! 

It helps to change your money mindset

Simplifying our lives, and learning about money, enabled us to pay off my student loan debt, save for an emergency fund and stop living paycheck to paycheck. However, I’m still working on the stories I tell myself about money.  For me, fostering constructive feelings about money will be a lifelong process. 

• cultivating a gentle money mindset
• recognizing my privilege
• learning about money
• budgeting
• and more.

The actions above help me feel less alone, and motivated to keep saving money. In this article, I’ll talk about why saving for an emergency fund is important, and creative ways to do so. Also, the information provided in this piece is based on my life experiences and research. Before making big financial decisions, please see a licensed financial advisor or fiduciary.

Why should I save for emergencies?

“Emergency funds create a financial buffer that can keep you afloat in a time of need without having to rely on credit cards or high-interest loans. It can be especially important to have an emergency fund if you have debt, because it can help you avoid borrowing more,” says savings expert Margarette Burnette.

Over the years, our emergency fund has been a dependable resource. For example, I was diagnosed with Melanoma Skin Cancer in 2021. I was successfully treated, and we relied on our emergency fund to pay my medical bills. This unexpected expense and others were less stressful because of our emergency fund. Also, we’ve used our emergency fund for major car repairs and to pay bills when we were unemployed. 

How much do I need to save for an e-fund?

The amount you include in your e-fund is up to you. A good rule of thumb is saving 3-6 months of expenses. Ellevest starts with this recommendation too though at first you probably need to start smaller with $500 or a months’ worth of expenses. Others suggest putting enough money aside for unplanned expenses as a small safety net. This can offer some relief during a job loss, medical emergency, home repairs or other emergency expenses. Many financial experts recommend building a small emergency fun before you start paying extra money towards debt.

Resist using your cash reserve for things you can plan for like regular living expenses, a mortgage, rent or taking a vacation. Research the best place to keep your emergency fund. Ask an expert about what type of account you need. You may consider a high-yield savings account or money market account.

10 Creative Ways To Save For An Emergency Fund

Below is a list of 10 creative ways to save for an emergency fund. The list is in no particular order. I’d encourage you to pick one or two items from the list, and incorporate them into your financial planning process. And remember, set savings goals that work for you, contribute to your fund consistently, and avoid withdrawing money from your fund unless the expense is a true emergency. 

1.) Create a simple budget.

Creating and keeping a simple budget is an excellent way to identify unnecessary expenses and to save money. When I first started budgeting I was shocked by how much I was spending on loan interest, alcohol, and more!

Budgeting continues to help me be aware of how I spend money. As a result, I’m able to match my values to my spending. For example, we recently cut back on online subscription services and diverted the extra cash to our emergency fund. In essence, budgeting will empower you to save more, spend less, and dream big. 

2.) Negotiate bills. 

After you create a simple budget, look at your expenses and make a list of companies that provide services like internet, cell phone coverage, cable, insurance, and more. Then, visit their website or call a customer service representative and inquire about special deals. You can also try to negotiate a lower rate. It’s worth noting that you can negotiate medical bills, too. 

3.) Automate your savings. 

Transferring money from my checking account to savings is easy because I automated the process. This makes saving super easy because I don’t have to do a manual transfer. 

Not sure how much to save? Here’s some great advice from Vanguard, “For instance, let’s say you set aside $25 a week in an emergency fund. At the end of 2 years, you could have $2,600 saved. Increase that amount to $50 a week and your savings could grow to $5,200. Make it $75 a week and you’ll see an even larger amount saved—$7,800.” 

4.) Save windfalls

Recently, my husband received an unexpected bonus from work. It was such a delightful surprise! We decided to save most of the money. We’ve done similar things in the past with a tax refund and cash gifts. If you received unexpected cash, consider putting the money in your emergency fund. 

5.) Experiment with a no-spend challenge

The idea behind a no-spend challenge is simple. You don’t spend money on non-essential items for a set period of time. The time period could be one-week, a month, or up to a year. Choose what works for you! This is a great way to examine your spending habits and save money. If you’re looking for additional inspiration, read The Year of Less by Cait Flanders. 

6.) Sell unused items

Letting go of belongings you don’t need can be good for your pocket book and your closet. You can sell big things like a car, or smaller items like old cell phones, clothes, and collectibles. Consider using online marketplaces to sell your stuff or have a traditional garage sale. Then, put the proceeds in an emergency fund. 

7.) Try the 52-week money challenge

The 52-week money challenge is a fun and customizable savings challenge. 

The folks at Fidelity explain, “The 52-week money challenge could help you build a savings habit by putting away an amount of money that corresponds to the week you save it. So, start with $1 in week 1. In week 2, save $2. For week 3, save $3. In the last week, save $52—you’ll have stashed away a total of $1,378.” You can also reverse this money challenge and start with the largest contribution and work down to the smallest.

Check out Fidelity’s inspiring money table and tips! 

8.) Take on a side gig

If you have the time, energy, and inclination, taking on a side gig is one way to bring in extra money for your emergency fund. Usually, side gigs are short term work projects. If you’re in the market for additional work, check out FlexJobs. It’s a great resource.

9.) Digitally round up your purchases

“Financial technology has come a long way in a short period of time, and money-saving apps are at the forefront of this revolution. These apps use a variety of techniques to make saving money less of a hassle—and even fun,” says Cassidy Horton and Michael Benninger.

Horton and Benninger reviewed over a dozen money-saving apps, and came up with a list that will aid your micro-saving efforts. This is a great way to automate your savings!

10.) Use cash-back rewards strategically

Currently, I use a credit card that gives me cash-back rewards. Usually, I use my rewards to buy coffee. However, I’m going to start transferring my cash rewards into my emergency fund. If you have a credit card that offers cash-back rewards, save the extra money. 

Bonus Tip #1: Be Kind to Yourself 

If saving for an emergency fund feels impossible right now, I empathize and relate. Please remember that you aren’t alone. As you evaluate your finances, ask for help, find support, and be kind to yourself.  

Bonus Tip #2: Loud Budgeting can Help

Tiktoker Lucas Battle coined the term Loud Budgeting and said it was a way to talk more openly about personal finances. This means if getting together with friends for dinner at a fancy restaurant stretches your budget, instead of adding to your debt, you simply, say, “this doesn’t work for my budget” and suggest an alternative. According to this NerdWallet article, Loud Budgeting can help you with “Strengthening your boundary-setting and communication skills, and holding yourself accountable, can help you save more money to put toward your goals.”

Resources to help you save for an emergency fund

Looking for additional resources to aid your savings efforts? Check out the list below: 

• Read the updated edition of Your Money or Your Life by Vicki Robin and Joe Dominguez. The authors offer in-depth budgeting advice, and excellent ideas that will help you save money for short and long term goals. Most public libraries have a copy of this book.