She Strengthens

Rebuilding My Emergency Fund: A Personal Journey

As a self-proclaimed saver, I’m embarrassed to admit that building an emergency fund has been a significant struggle for me. While I’ve successfully saved for big-ticket items like tuition, travel, and a down payment, this emergency fund has proven to be a daunting task.

Defining My Emergency Fund Goal

My goal is to save $7,000 CAD ($5,142 USD), which may not be the traditional six-month target, but it’s a comfortable amount for my personal situation. As a government employee with a stable income and access to sick leave, I’ve factored in these benefits when determining my emergency fund goal.

The Setbacks

Recently, I’ve had to dip into my emergency fund three times, totaling $1,886.24. Here’s a breakdown of these expenses:

• Tuition: $1,069 ($785 USD) – I went back to school part-time, and although my employer is covering 100% of the cost, it’s a reimbursement process, and I need to cover the initial expense.
• Condo Levy: $692 ($508 USD) – I opted to pay a condo levy upfront to avoid adding a new bill or temporarily changing my auto-draw.
• Home Insurance Increase: $125.24 ($92 USD) – My home insurance premium increased, but I was able to negotiate the terms and even scored a free car towing service.

Getting Back on Track

To replenish my emergency fund, I’ve developed a plan to make up for the shortfall:

• Investments: $100-$200 ($73-$126 USD) – I’ll cash out some of my investments to contribute to my emergency fund.
• Side Hustle: $400 ($300 USD) – I’ve started a new side hustle as an online transcriptionist and closed captioner, which has already generated $150 USD.
• Extra Work + Overtime: $600 (after taxes) ($440 USD) – I’ll take advantage of election season and work overtime to boost my income.
• Transit Savings: $160 ($117 USD) – As a student, I’ll save on transit costs with a free, unlimited student transit card.

Total Planned Savings: $1,360 ($999 USD)

While I’m still short $500, I’m committed to making up the difference without drastically cutting back on my expenses. I’ll continue to prioritize my savings goals, enjoy the holidays, and focus on rebuilding my emergency fund.

The Takeaway

Life is unpredictable, and unexpected expenses will arise. Having an emergency fund in place has given me peace of mind, and I’m determined to replenish it. By diversifying my income streams and staying committed to my goals, I’ll overcome this setback and continue to grow as a responsible adult.