How To Save A $3,000 Emergency Fund By The End Of This Year

In this video, Chelsea explains The Emergency Fund Challenge, outlining how someone could set to save $3,000 towards an emergency fund by the end of this year. Share your own emergency fund challenge on social media, and be sure to tag us in your progress!

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[dennisk]

I save $250 per paycheck, I call it my car payment.
I drive a 2005 trailblazer that’s not anything nice or flashy but it’s completely paid off. Every 2 weeks my savings and retirement accounts get paid instead of a debt.

[ashtonoakstand]

I set up and saved up an emergency fund before I started school in 2019, and squirreled away a little bit more over the past couple years. It’s super small, like $2k, but if my beater car were to break down or if I needed an emergency dental procedure, I wouldn’t be strapped for cash. So yeah, I’m still broke technically, but I feel a lot more secure than I used to!

[DavidWilson-smym]

I saved $10, 000 last year thanks to your advice and constant reminders about why I need an emergency fund in your videos. I'll be happy with how big it is when I get it to $15, 000.

[folasadeadedapo]

I have almost 7, 000 saved. My goal by the end of 2023 is 10, 000. It's been a hard road.

[DemetriPanici]

Everyone needs to make sure they have this level of emergency fund setup minimum! I personally try to shoot for something a little higher but it's all about taking steps in the right direction.

[msthing]

As a grad student, my emergency fund allowed me to go to summer schools and take advantage of opportunities that opened themselves (it was hard to predict, so they were more emergencies than plans). But the fact that I had a few thousand saved for a ticket and a cheap hostel allowed me to make professional connections that got me wonderful jobs after graduating. I may have been taking a chance by taking money out of this fund, but I'm really glad I did!

[TheCinder]

Such a timely video. I just drained my emergency fund by helping my daughter move across country and fixing my car. Time to buckle down and save again...

[espadron]

Hi there, I am interested on your take on the “be your own boss” culture. It’s gotten to the point where it feels like if you don’t own your own business you are failing at life. Not everyone wants to do that and not everyone is able to do it. I’ve seen many of my friends and loved ones sucked into MLMs because of the whole “girl boss” mentality. I wish we could normalize being ok with working for someone else, doing something you love. And being ok with not “having” to own a business if that’s not for you.

[amelieflorelle]

The past year and a half has really demonstrated how important it is to have an emergency fund for sure 🚨 saves so much stress to get ahead when you can 💆‍♀️

[d]

My emergency fund is a huge source of comfort to me because the drama around sudden money crises is gone. I might not like having to spend $500 on a sudden repair, but it doesn't throw me into despair because the money is there.

[TheSecularMinority]

I've spent the past year and a half watching and absorbing financial videos from several channels and my two biggest takeaways have been:
1. Get on a written budget, and STICK TO IT!!
2. You need an emergency fund of 3-6 months basic expenses.
Both if these have proven to be valuable takeaways time and time again. If you take away nothing else from TFD or anywhere else at least take those two things.

[courtneygalanti]

My emergency fund allowed me to leave a job that was making me suffer mentally and look for another!

[anat]

Emergency funds values are very personal. Although the advice is to have between 3 to 6 months saved up in an emergency fund, I prefer to have a years' worth. That number brings me peace of mind.

[ML-zbgq]

Hi Chelsea! I truly hope you read this. We moved from Spain to the US a couple of months ago, and I will say that the American financial system is really confusing. It seems you need credit for everything, not only for buying a car or renting an apartment. We have been asked for our credit score to set up ELECTRICITY when we moved to our apartment. Since we don’t have any credit, we’ve had to pay security deposits for everything. I will not rant about the absurdities of my experiences (I was brought up to think that if you couldn’t afford something, you simply wouldn’t buy it. Asking for credit was for people trying to live above their means). As someone who has lived in several countries as an adult and travel many times to the US for holidays, it truly was a shock when I had to face the financial system. I wanted to suggest if you could do a video on how to start building credit, which banks do you recommend, etc. A “home finances for dummies”, 101 of finances in the US for a young couple who is starting with no financial history. Thanks for your videos and the great work you put into them!

[Lara-tmnz]

To me the best financial advice for someone with a low budget (but basically it is great for everyone) is the 365 (days) rule. Track daily expenses for an entire week and try to identify the invisible small spendings that quickly add up to larger sums. Multiply with 365 days (1 year)
Daily café to go: 4$ x 365 = 1460$
Daily lunch break: 10$ x 365 = 3650$
Daily commutes: 5$ x 365 = 1825$

I stopped buying my coffee outside and cook instead of eating out for lunch. Eating out is something I want to celebrate and not a daily thing bc I try to convince myself that I don't have time to cook. I also switched to using my bycicle more often instead of taking the metro. Of course the numbers are a little bit off bc you still have to subtract the costs of cooking and making your coffee at home. But they can give you a perspective on were you might be wasting money

[jay]

Emergency funds are so important! I've gotten mega screwed recently due to not having any wiggle room funds, which just opens you up to predatory loan companies.

[paytonkade]

I'm so glad I started saving an emergency fund with around 4 months worth of expenses last year, because I'm working an unpaid, full time internship for 12 weeks this semester. That time/energy commitment means I've had to cut my hours at my part-time job, although I managed to keep a good chunk of my income rolling in. Basically, my emergency fund is taking small monthly hits until November to help cover the difference. I am definitely going to keep this challenge in mind for after graduation this December, because I'll be looking to quickly re-up my savings account so I can move back towards my other financial goals!

[ChloeTheePayne]

THIS IS EXACTLY WHAT I NEEDED TO SEE TODAY! it's so easy to feel overwhelmed about the time-sensitive aspects of money, "i coulda/shoulda/woulda started saving or investing or budgeting differently x number of weeks or months or years ago and i feel bad that i didn't so what's the point of starting now..." tfd vids are super encouraging and motivating, LOVE this call to action to set some specific goals today for the last few months of this year. hell yeah let's

[akirebara]

$300 a month on alcohol??!!! And here I thought my splurges on flavored fizzy waters were expensive.

[jadwiga]

I already have an emergency fund (thanks to finding this amazing channel a few years back) and recently I unexpectedly had my housing situation changed, which caused my to withdraw some money. It truly was a great feeling to be able to not stress so much and just *have* that money ready but now a new month is here and I withdrew some money again, as I still have some higher, unusual expenses. What if... it won't stop? There is always a reason to justify extra spending and I am anxious that I will just drain my emergency fund quite fast on smaller things that will add up -- any tips on when to allow for these withdrawals and not stress about them and when to block them and start saving again?