Steps to Building an Emergency Fund When You Are Broke

Why should you have an emergency fund? Because when the going gets tough, you’re going to wish you had something to protect you. It’s no fun being unprepared when an emergency hits. It's crucial to get prepared for the unknown. When I got fired, I was left with the “I just got fired” shock, and had no emergency fund to help me through my rainy days. It was the most depressing time for me because I kept beating myself down about how I could have better prepared for an emergency. I now know better and am here to help you.

Here are a few things to assist you in developing an emergency fund.

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How Much Should I Save?


The amount of money in your emergency fund varies. Although experts recommend savings of three to six months worth of basic living expenses, the reality is it’s hard for most people to accumulate a fund of the size. Starting with smaller fixed amounts between the ranges of $1,000 to $4,000 can suffice. However, what you need depends on your budget and where you are currently in your life. Some of us are single and broke, some of us have families and are broke, the list can go on. When you are deciding to build an emergency fund you should include these factors:

  1. Who do you need to support? The more people you are support — the larger your emergency fund should be.

  2. How easy will it be for you to bounce back if you were to suddenly lose your job position?

  3. In looking at your emergency fund right now, if an emergency were to arise, would you be covered? What does a comfortable cushion look like yo you?

    To make things easier, it may be helpful to brainstorm what may count as an emergency to you and what you’d be able to afford. Some examples include losing a job, being evicted, or having a natural disaster impact your home. List how much in each situation it may cost you to bounce back.

How Do I Build A Cushion?

Once you set an amount that you’re comfortable with. It’s time to prepare your savings.
After you’ve met your necessary living expenses in your budget, you should allocate extra money towards an your cushion. You can begin with small amounts like $20 or $40.

  1. If you are having difficulty finding spare change try to find areas in your budget you can cut back. Going out every weekend, pampering yourself even though you are bad and bougie is not cute when your cushion is struggling. Once you commit to building an emergency fund, you can make room for these expenses later.

  2. You may be interested in opening an account that you use to build your Emergency Fund.

  3. Did you receive a big bag? A tax return? A financial Gift? No, it’s not party. This money can be used as an excellent boost toward building an emergency fund.

Reexamine your emergency fund size periodically It’s always best to have a fund’s size that correlates to your current situation in life. You may need to increase or decrease your how much you’re allocating to your fund overtime. Remember that an emergency fund is only to be used in an emergency. Go without one, and you’ll risk playing catch up.