Encouraging Moms at Home

Tips, Tricks and Tools for the #MomWin

  • Home
  • About Us
    • Contact Us
    • Brand Inquiries
    • Full Disclosure
    • Our Writing Team
  • Homemaking
    • Cleaning
    • Essential Oils
    • Recipes
      • Instant Pot
      • Gluten Free Dairy Free
      • Using Produce
      • Cooking with Pumpkin
    • Nutrition
    • Food Preservation
  • Homeschooling
    • Homeschool Encouragement
    • Homeschool High School
    • Special Needs
    • Homeschooling Art
    • Homeschool STEM
    • Homeschool Technology
    • Teen and Tween Writers
  • Teaching Ideas
    • Free Printables
    • MInecraft
    • LEGO
    • Fine Motor Skills
  • Family Life
    • Gift Guides
    • Kid’s Activities
    • Summer Fun
    • Hiking
    • Moving
    • Christian Life
      • Christian Family Activities
      • Scripture Memory
      • Poetry
      • Creation
      • Advent and Christmas
      • Thanksgiving
  • Moms
    • Encouragement
    • Budget And Finances
    • Mom Fashion
    • Date Your Spouse
    • Work At Home
  • Shop
    • My Account

How to Build an Emergency Fund on a Limited Income

by Amy Blevins 1 Comment

Posts contain affiliate links. This means, if you choose to make a purchase, I will make a commission at no extra cost to you. For more information please see our full disclosure.
837shares
  • Pinterest830
  • Facebook4
  • Twitter

You probably already know how important it is to build an emergency savings fund, but that doesn’t mean you’ve started. It’s not always easy, especially when you are trying to figure out how to build an emergency fund on a limited income. But it’s very important to have a savings for emergencies because you just never know what could happen.

Most people don’t like thinking about worst-case scenarios but it’s important that you are as prepared as you can be for unforeseen expenses that would otherwise – quite literally – break the bank.

Let’s first define what an emergency fund is and how it is used so that we are on the same page. An emergency fund is a small cushion of savings to help you in the event of an emergency or unexpected expense. Maybe your car breaks down, or someone in your family gets sick. You could get unexpectedly laid off from work, or have a client not pay if you’re self-employed.

Any type of event that could cause a financial crisis is covered under the emergency fund. A small repair might not dip into your savings all that much, but a larger crisis will probably include bigger expenses. In any case, you go to your emergency fund first and then replenish it afterward when you can.

Do you have an emergency fund? It is so important to have savings to fall back on. But what if your income is limited? Take a look at tips on how to save for a crisis.

How much should you save for your emergency fund on a limited income?

Experts recommend you try to save between three and six months’ worth of living expenses in your emergency fund. In addition, you should also create an emergency budget. Your emergency fund will help you for smaller, short-term emergencies but if something big happens, like losing your job, your money will run out quickly without following a proper budget. When you’re living off your emergency fund, you want to keep those expenses as low as possible.

Here is how to build an emergency fund on a limited income:

  • Set a goal – Your first step is to create a goal so that you know what you’re working toward. You need to know what you’re trying to save. Not having a goal keeps things too vague, and will make it harder for you to reach. Make sure your goal is realistic. It’s okay to start small and then build up over time.
  • Save first – Don’t wait for what’s left over to save. Pull out your savings first. This is the part that people have the most trouble with when they are already on a limited income. It can seem very difficult to save money when you already don’t have enough money to go around. However, it’s essential that you find a way.
  • Automate whenever you can – If you can automate your savings, you can just set it and forget it. You can set up an automatic withdrawal from your bank account to savings each month, or for a certain portion of each paycheck to go into savings.
  • Think creatively. Have a yard sale and put all of that money into your emergency fund. If you don’t have much to sell, add inexpensive baked goods. One family I know makes money in October by making and selling gourmet caramel apples. Maybe you can make homemade bread or gluten free baked goods for people in your home town. Find a creative one-time way to make some money and set that aside for your emergency fund.
  • Pay down debt, but keep your cushion – While it’s good to want to pay off your debts, it’s also important that you keep some cushion for emergencies. You don’t want to put everything you have into paying down the debt, and leave yourself in a bind should an emergency happen. That’s the whole point of the emergency fund. So, make sure you’re still adding to your emergency fund while also paying down those debts.
  • Stash any windfalls – If you come into any extra money, such as an inheritance or a tax refund, be sure to stash that money away into your emergency savings fund. Avoid being tempted to blow it all on things that aren’t important.
  • Cut expenses where you can – Look for places to spend less and cut expenses. The money you save can be added to your emergency budget. It also means you won’t have to live so financially tight while you are still saving money.

Now that you know how to build an emergency fund, all that’s left is to get to work. Make a commitment based on the ideas above, and then just remain consistent with it. It may seem tough at first, but the longer you do it, the easier it will be. And little by little you will be adding money to an emergency fund on a limited income. You can do this.

837shares
  • Pinterest830
  • Facebook4
  • Twitter

Disclosure

1 Comment
Budget And Finances, Family LIfe, Moms

About Amy Blevins

Amy lives with her husband and six beautiful children in Northern Virginia. Besides blogging, Amy enjoys homeschooling, hiking, reading, singing, teaching, and serving Jesus above all. Welcome.

Trackbacks

  1. 5 Ways to Stick to Your Budget says:
    February 20, 2018 at 6:53 PM

    […] How to Build an Emergency Fund on a Limited Income or Tight Budget […]

    Reply

Search

Our Favorite Essential Oils

Essential Oil blend for Concentration and Focus

Keep In Touch

  • Shop
  • Contact Us
  • Facebook
  • Twitter
  • Instagram
  • Pinterest
  • About Encouraging Moms at Home
  • Brand Inquiries
  • Full Disclosure with Privacy Policy
  • Our Writing Team

Kids Can Learn with LEGO Bricks

Our Latest Shenanigans

See these pretty little plants playing peekaboo? I See these pretty little plants playing peekaboo? I thought they were goners. See, my sister gave us the bulbs for Asiatic Lillies for Christmas last year, down in a bag full of dirt and told us to take them home and plant them in the cold so they would rest and come back next year. Or freeze them. I did neither. I knew we weren’t in our own home yet, and we were hoping to move into our forever home this summer, so I threw them in the closet and waited. They stayed dormant, and started to develop roots in the Spring, still in the bag in my closet. Come June 5, we moved into our new house, and I pulled out the bag around June 15 to plant them and found that the roots were turning to mush. The bulbs were starting to rot. I planted them anyway, but to make matters worse, I accidentally planted them upside down because I thought the roots were actually sprouts. Oops. Then, I hired my boys and their friends to weed the bed where these are planted and forgot to tell them to leave these alone. The “sprouts” disappeared. I thought they were gone forever. Here it is the middle of August, and a week or so ago, I found these baby Asiatic Lillies coming up. I texted a pic to my sis to ask if this was what they look like. Sure enough after all that trauma, this gift survived. I won’t have blooms this year, but I’m told they will come back next year and survive to bloom. What a sweet blessing that will be, God willing. And a sweet reminder to persevere under trials and hardship. God is doing something bigger, something hidden, something better than we can ever imagine. Hang in there! #momlife #momfierce #momforthewin #firmlyplanted
Today I’ve been sorting through some heavy stuff Today I’ve been sorting through some heavy stuff, especially the unmasking of pedophilia and it’s prominence in the US and in our backyards. This horrifies and frightens me. I am so grateful to know that God will prevail. In the end, He wins. Everything seems so dark here in the US and it’s because of the spiritual forces of evil — but I know God will prevail. His love never fails. I’m putting my hope in this truth. #loveneverfails #godwins #godisgreater #momlife #momfierce
I’m grateful to have prayer in my life. Worry st I’m grateful to have prayer in my life. Worry steals so much joy. 
I’ve also been grateful for the Pray Fierce Summit summit. You can listen free each day by looking for the preview buttons. 
#prayfierce
Join us in prayer? The link is in my profile. List Join us in prayer? The link is in my profile. Listen free each day by looking for the highlighted “preview” buttons. #praynow #prayfortheworld  #prayerchangesthings
⁣ ⁣I love this. In the ESV it says be Faithful ⁣
⁣I love this. In the ESV it says be Faithful in Prayer. That’s one of my goals in life! ⁣
⁣
⁣
⁣It’s also one of the goals of the Pray Fierce Summit - to help moms be faithful in prayer. ⁣
⁣
⁣
⁣It’s free to listen each day — I hope you will join us! ⁣
⁣
⁣
⁣You can listen free by clicking the preview buttons on the sessions labeled “watch free!” - find the clickable link in my bio!⁣
⁣
⁣
⁣https://mom-fierce.teachable.com/p/moms-pray-fierce-summit⁣
⁣
⁣
⁣
⁣
⁣
#prayfierce #prayformoms #prayerrocks #prayer #pray #momfierce #momwins #momlife
Guess what showed up on my doorstep this morning? Guess what showed up on my doorstep this morning? Chicken for my freezer! I’ve been struggling to find meat at reasonable prices, so I was very glad to find this. If you want chicken Use code Farmer10 to get 10% off too. Use my #linkinprofile to support my #ladyboss business! #homelife #familylife #momlife #chicken #linkinbio
This is such a tough time for so many. Our hearts This is such a tough time for so many. Our hearts and prayers are with you if you are struggling today. Reach out if you have a need. You are loved. 💕
There are so many things I need to tell you about There are so many things I need to tell you about this picture. First #sheisloved campaign with @mercyhouseglobal and sheispriceless.org - check that out it’s important. Second - that cute bracelet came from @mercyhouseglobal about a month ago and *didn’t fit*. Today it’s loose enough to twist. I haven’t lost a lot of pounds according to the scale — I kinda stalled out three or four weeks ago at 17 pounds lost — but apparently I’m losing fat. That’s a victory. Third, my hands look like my moms and will some day look like my grandmas. I consider that a blessing.  Finally, it’s been a beautiful day😍 but I’m kinda sad it took me this long to find a red marker and share the love. If you have one handy, it’s not too late to jump on board with @wearethatfamily and be a world-changer! #worldchanger #momfierce #prayformoms #especiallyteenmomsinkenya #mymomrocks
How was Mother’s Day for you. It can be an incre How was Mother’s Day for you. It can be an incredible blessing or bring incredible pain. In whatever your circumstance, I will pray that you rest in God’s presence today. #mom #momlife #momwins #momfierce #momsofinstagram #2020mom
Follow on Instagram
Copyright ©2021, Encouraging Moms at Home. All Rights Reserved. Custom design by Pixel Me Designs