Simple Steps in Building an Emergency Fund

Being a single mom during the pandemic was not easy. It was hard since I didn’t have a fixed income. I relied on offering my freelance services to friends, family, and referrals. Since my services needed to keep in contact with people face-to-face, my business didn’t turn out too well. What is more pressing is that I didn’t have an emergency fund to burn during those times, which was a hard lesson to learn.

After the pandemic, it is not over yet, but I have decided to improve my finances this time. And it will begin with setting up an emergency fund and be followed by retirement planning. I need to take care of myself in the future, too, since I don’t have any partners and I can’t rely on my children.

As I made my research, I found steps in building an emergency fund and reaching savings goals easily. Let me share them with you:


Set up a budget. Tell where your money should go and not the money dictate where it should go. This will take time. It doesn’t happen overnight. Observing your expenditures for a month is not enough. In an average of three months, you would know your budget. Some people take longer.

  1. SAVE

Saving first before expenses. This is an old one. We kept on hearing this again and again. Why? Because it is the truth and practical. We should a lot an X amount of money first as our savings, and the rest should be used for expenses.

  1. BUILD

Lastly, build your emergency fund. An emergency fund is different from your savings goals. Like the name itself, Emergency Fund is allotted for emergencies in the family. This is why I had a bad misconception about saving money while I was growing up. I thought my savings were my emergency fund, I didn’t know that you could separate it according to purpose.

These are the three that are common in all practical finance blogs that I have read. It looks easy, but starting is tough. So, like you, I am starting again, too. This time, I will be more determined. I don’t wish for another pandemic, but it should be easier if I have something stored for rainy days.

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