An emergency fund is one of the financial tools that anyone must own not only because it allows them to be prepared for unforeseen events but also because it is the bridge to creating the habit of saving. We quickly agreed that an emergency fund has a short-term time horizon with total liquidity and flexibility of movement, namely in terms of reinforcements.

Savings are products of choice for the more conservative; however, low risk investment funds are also good options, such as treasury or money. The important thing is to have liquidity, because at any moment you may need to use it.

One of the difficulties in creating an emergency fund is to get the money for it or to create the habit of saving, because it is not always the lack of money the difficulty, but the discipline to better manage the existing money.

Get Started Today to Save on Rebates

Get Started Today to Save on Rebates

Do not postpone the creation of an emergency fund for when you have money available. Start today with the changes you have in your pocket, putting them in a small piggy bank and watch the money grow.

Avoid having change in your pocket every day of the day and save at the end of the day all the changes you have made during that day.

Make Savings an Expense


Assuming at the outset that saving for your emergency fund is a monthly cost it is easier to achieve the goal. Basically, stipulate a monthly contribution to your individual or family monthly budget.

Create a Family Budget

Create a Family Budget

A good way to start organizing your financial life is to have a simple budget, such as a record of weekly expenses over 3 months.

This will give you a reliable view of your financial life and you may find sources of savings for your emergency fund. Do not be complicated to use a sheet of paper for this purpose. Look for simplicity.

Look for Cut Costs

Look for Cut Costs

It is easier to find money on high monthly expenses than to save on small things. If food is one of the highest expenses in your monthly budget, try to gradually reduce it to 25% savings.

Avoid saving today 25% of it gradually and smartly, that is, trying to maintain consumption but with healthier products. For example:

Month 1: Reduce 5% of food expenses from 300 euros monthly to 285 euros.

Strategy: Learn new ways of cooking with healthier products, such as vegetables.

Month 2: Achieve saving of 10% ie spend only 270 euros per month

Strategy: Introduce cheaper branded products.

Month 5: 25% of monthly savings, that is, 225 euros of monthly expenses.

Strategy: Acceptance of new healthier consumption habits.

If you have other higher expenses look for strategies to reduce the monthly burden on them to create lasting savings habits.

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