She Strengthens

Building an Emergency Fund: It’s Not One-Size-Fits-All

When it comes to creating a safety net, everyone’s journey is unique. Your income, spending habits, budgeting skills, and job stability all play a role in determining the best approach for you. The key is to find a strategy that works for your lifestyle and financial goals.

Why You Need an Emergency Fund

In times of crisis, having a cushion of savings can be a lifesaver. It’s easy to put off building an emergency fund, but trust us, you’ll be grateful for it when you need it most. Whether you’re just starting out or already established in your career, making saving a priority is crucial.

Real-Life Strategies for Building an Emergency Fund

We’ve gathered stories from 20-somethings who have successfully built their own emergency funds. From automating transfers to finding creative ways to cut expenses, these individuals prove that anyone can take small steps towards financial security.

1. Start Small, Be Consistent

Jessica, an accountant, opened a separate savings account and transfers 15% of every paycheck into it. She calls it her “rainy day fund” and has become more intentional about where her money goes.

2. Every Little Bit Counts

Steph, a full-time student, puts a little away every time she works a job. She’s saved around $500, which may not seem like a lot, but it’s a start.

3. Get Creative with Carpooling

Laura, a barista, sold her car and started a carpool system with a friend. She saves money on lease payments and funnels it into her emergency fund.

4. Take the 30-Day Challenge

Ryan, a finance professional, took a 30-day challenge with his girlfriend to stop buying coffee and drinks out during the workday. He transfers $20 per week into his savings account, representing the money he’s saving.

5. Think Long-Term

Alex, a teacher, has a straight-up savings account that she doesn’t access. She considers it her emergency fund, but also sees it as a way to save for long-term goals like buying property.

6. Be Strict with Savings

Jenna, a freelance designer, puts away 1/4 of every check she gets and distributes it among her retirement savings, 401(k), and emergency fund.

7. Find a Support System

Joanne, a nanny and teacher’s aid, gets help from her boyfriend in staying on top of her finances. They support each other in their financial goals.

8. Practice Delayed Spending

Jo, an HR assistant, uses a strategy of delayed spending, where she forces herself to wait 48 hours before buying something. This helps her consider whether she really needs the item.

9. Take Advantage of Bonuses

Matt, a sales professional, uses his annual bonus to top up his savings account/emergency fund. He saves a portion of it each year and has built up a nice chunk.

10. Get a Fresh Perspective

Erin, an administration assistant, enlisted the help of her aunt to review her budget and identify areas to cut back. She reduced her spending in certain areas and now throws that money into savings.

11. Make the Most of Side Hustles

Jamie, a graduate student, takes on side jobs to bring in extra money, which she puts away in an account for savings.

12. Make a Pact with a Friend

Erica, an account coordinator, made a pact with her best friend to save 10-15% of their annual income. They kept each other accountable and celebrated when they met their goals.

These stories show that building an emergency fund is possible, no matter your income or job situation. Find a strategy that works for you and start taking small steps towards financial security today.