Saving for your Emergency Fund

Emergency savings is all about feeling secure. It is nice to know that you have money saved away for unexpected expenses, whether it be a large bill that came out of no where or whether you all of a sudden need to grab your bags and head for the hills with some cash!

The concept of saving for an emergency, or as we once called it ‘The Rainy Day Fund‘, is something most of us don’t do so often anymore. Everyone has bills to pay, mortgages to repay, child care fee’s and more – leaving left over money from each pay cheque a very rare occurrence.

Now let’s look at ways that we can once again start the old emergency fund back up!

How much do you need?

Some people feel secure with $50 to $100 stashed away inside the pantry, while others like to have a full fledged savings account that is added to monthly in order to grow and equate to a large figure over the years.

Personally I like to have around $200 left at my residence in order to cover any kind of emergency or cash only requirement. I cannot tell you how many times this has helped me when it came to unexpected deliveries requiring payments and tradesmen that can cut the cost of work if you pay cash on the spot.

I also have a larger emergency fund in my high interest savings account that can easily be accessed, this acts as a backup fund that doesn’t exist as I try to not touch it unless of emergency.

Emergency Saving Tips

1. Try saving 5% of your pay cheque into your emergency money account.
2. You could also try to deposit $5 a week into a tin you keep at your house, this will quickly add up!
3. Create a jar at home that is only for $2 coins. You will very quickly have a lot of coins that add up to a lot of money.
4. Think about how good you will feel knowing you are prepared for the worst financially.
5. Your emergency savings fund can add up to some serious cash, if you never need to use it you may consider using it to pay off your large debts one day.

Your emergency fund

Do you have an emergency fund? If so, how do you hide it away? Do you tell your family or do you just save?

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