The truth is that most people in America cannot afford a $400 emergency. They just do not have the cash for it. If an unexpected expense comes up, most people use a credit card. That’s why having an emergency fund is so important. I think that the minimum people should have saved up at all times is at least $1,000. That is not a full emergency fund but is a good starting point. A fully funded emergency fund should be 3-6 months’ worth of living expenses.
$1,000 will put you ahead of most people and you will not have to go into debt. The first thing you need to do is make it a priority and be very intentional. It is very easy to spend money, but once you have a goal to save $1,000, you will think twice if it is a necessary purchase. Priority and intentionality is the secret sauce.
Once you are determined, it is now time to put in the work. And it will take hard work. I’m not saying that it will be a walk in the park. Look for side hustles. Remember that this is temporary and remember the bigger picture. Nothing wrong with delivering pizzas or mowing lawns. There are many other options like driving for Uber, dog walking, food/grocery delivery and babysitting just to name a few. Get creative!
Another way to increase cash flow is by selling items around your house. You would be surprised how much junk you could sell that people will buy! There are many great apps that can connect sellers and buyers. Of course, there is always craigslist. Lastly, check your budget and see if you can find a way to squeeze some money towards the $1,000 that month. If you can skip eating out and cook at home, that will save you a lot of money. You got this!