What’s up rich people, it’s me Haley aka Mrs. Dow Jones and today I want to talk about How To Save an Emergency Fund in an Emergency, Like right now in this global pandemic. Yep. By the end of this video you will have ALL the information you need! Let’s do this bitch.
Ok so we are in crazy times! So many people are experiencing emergencies. They’re losing their jobs, they’re in the hospital and these are really good reminders of why emergency funds are so important. If you don’t have a safety net for when things happen that are out of your control- like getting laid-off, like contracting Coronavirus- you leave yourself wide open to financial ruin. Which I know is intense but like, I’m intense.
So, if you are in a position where you are home during quarantine and have some sort of income, let’s pursue your financial health.
Do what the doctor tells you, and today that doctor is me. I’m writing you a script for an emergency fund. Go fill it, bitch.
1. Find your number
Emergency funds ideally cover 3-6 months of your absolute necessities. Suze Orman says 8 but like, she also has Kate Gosselin’s haircut. So take it with a grain of salt. But basically the number you’re looking for is the minimum it would take to keep your life going- bare bones. We are not talking manicures or any of these purchases I made in quarantine. Nope - your emergency fund should just be able to pay your rent, utilities, food, healthcare - you know the things you can’t go without.
2. Don't freak out
Now that you have your number, you’re probably like okay, that’s never happening unless I win the lottery! Which yes, obviously would be ideal. But before you throw in the freaking towel - just know that it takes most people AT LEAST 6 months of REALLY focused saving to reach this goal. It took me 9 months. I could have had a baby with Drake in that time. So look at it like running a marathon and make your goal finishing.
3. Set up a separate account for it
I don’t know about you but when I see money in my account, I feel rich AF. Like, I wanna go straight to the Gucci Store. Or the Gucci website because obviously, social distancing. But the point is - your emergency fund is NOT for new sleds, Chad. It’s for emergencies. So let’s just make things easier and put it someplace you won’t see it at all, far away from your checking account. To do this, either set up a separate savings account at your bank or create an account at a new bank, which is what I did. That way if I want to get at it, it’s super annoying and I would really have to be in trouble to put in that effort and transfer that money.
4. Save up your first $1,000
Yep, let’s not even think about your big number right now. Just focus on this first 1000. I want you to hit that target. That is an order. Yes, I am Cadet Kelly. You have a huge opportunity right now to make progress financially. If you HAVE AN INCOME - and are in quarantine - then you should be spending less money than usual. Which means, you should be saving more than usual. I’m not telling you to sell your mom’s jewelry - trust me, I did that. She was pissed. But yeah, like be aggressive about reaching this milestone. And, if you want extra tips - hit up the video below for other ways to make money from home. You can do this.
5. Find ways to save
Let’s go back to step 1 now and pull up your bank statements and credit card bills again. Yep, it’s now time to look through them and find saving opportunities. Not having an emergency fund is an emergency. Be really strict with yourself. Think about Beyonce losing the baby weight before Beychella. She was SO focused and committed because she had a goal and also because she’s Beyonce. Be Beyonce.
If you want to learn even more about starting an emergency fund, watch this video all about it:
Ok so congrats. You started a fund. That’s sort of chic. Maybe you’ll start a hedge fund next. Love that for you. Speaking of which, gotta go Zoom with Ray Dalio. But please, don't forget to subscribe and remember - stay rich bitch.