Building an Emergency Fund and Peace of Mind

In a previous post, I had shared my story about The Power of the Emergency Fund. As promised, here is a follow-up to that post that shares how I build my Emergency Fund.

In all of my adult life, I always had it in the back of my mind to have some kind of savings or "rainy day fund" just in case something happened. Oh how I wish I had heard about Dave Ramsey 11 years ago. There were many rainy days throughout college and even up to this day that I could have used that money for.

I discovered Dave Ramsey after I started attending church at New Hope Leeward. My mom had given me a book called "Total Money Makeover" by Dave Ramsey for Christmas two years ago. Probably one of the best gifts she ever gave me, other than giving me life.

Baby Step #1 to his total money makeover is the Emergency Fund. Before I could start paying down any debts, I needed that Emergency Fund to be fully funded at $1,000.00. Being that it was just after the holidays when I started reading the Ramsey book I wasn't quite sure how I was gonna get that much money so that I could quickly start paying down all my debt.
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So here is how I did it:

1. Roll Loose Coins

I collected loose coins that I had in my car, around the room (with the exception of coins that were already in my son's piggy bank) and rolled them up and exchanged them at the bank. This gave me around $120.00 to start my Emergency Fund.

2. Garage Sale

My best friend from college's in-laws hosted a monthly community yard sale. I got a booth there and sold some of our stuff that we didn't need anymore and made about $200.00 from that.

3. Craigslist

I posted higher ticketed items that I knew I could get more money for on Craigslist. I sold Ku's old Orbit stroller that orginally cost us over $1,200.00 for $200.00 (mind you it was already about 4 years old at the time). I also sold a few other items and made about another $100.00 or so.

4. Creating a Budget

I listed out all my bills and expenses as well as my income to see where I could squeeze a little bit of money out to put towards my Emergency Fund. It meant I had to eat out less and go window shopping more often, but it was worth  the sacrifice. 

5. Additional Income: 

When I started to build this Emergency Fund, Sam and I had been in Visalus for a few months and had good income coming in from that. I took my Commission from Visalus (less 25% that I put away for taxes) and applied that towards my fund. 

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About 5-6 weeks after starting our Emergency Fund, it was fully funded.

These were fairly painless ways that I could make a little money as well as move around the money I already had to start my Emergency Fund.

Plan out a way that you are comfortable with to be able to get your Emergency Fund started.
Give yourself time. I was able to do it in a little over a month. It may take you 6 months or a year before you can get it fully funded.

But trust me, you will sleep just a little bit better at night because you know that if something were to come up that you will be able to rely on that Emergency Fund instead of using a Credit Card or having to ask a friend or family member to spot you a few hundred dollars.

*Note: If you are single, without children or have minimal income. $500.00 is a sufficient Emergency Fund to get you started.