The Lazy Way to Create an Emergency Fund
Automatic is the magic word
You’ve heard it before; it’s wise advice to have some money set aside for emergencies.
It’s just so hard to get organized.
Easy mistakes to avoid
🛑 Waiting for the “perfect” time to save
🚗 Not prepping for car stuff (flat tires don’t wait)
👗 Buying outfits for events you haven’t been invited to
📲 Not tracking where your money even goes
How can you find the discipline to save when you are just starting out? There are so many other things you could use that cash for. Deep down, you know an emergency fund is a good idea, but you don’t earn a lot.
Do you wish there was an easy way to save for the unexpected?
I still remember the sinking feeling when my car broke down and I didn’t have the money to fix it. I ended up using my credit card, which ended up being a costly decision. More on credit cards later.
We’ve all been there. Juggling work and home life while trying to pay your bills is difficult. It seems that there is never anything left at the end of the month to put into savings.
The good news is that there is a quick and easy way to start.
You only have to do this once, and it takes about 10 minutes.
Here’s how:
You need online banking (which most of us have), and at least two accounts: A chequing account and a savings account.
It’s good if you can create a savings account that you can’t access with your bank card. Hiding your savings from yourself is another tip I use.
For this example, I’m assuming that your pay is auto deposited into your chequing account. I’m also assuming you get paid every other Friday. (biweekly)
Go online and click on your chequing account.
Select pay bills and transfer funds.
Choose transfer funds and set up a transfer for a small amount ($15, for example). Feel free to use a different amount, but start small.
When: for your first transfer, choose your next pay date.
Frequency: choose biweekly. This sets up a transfer for every other Friday, to match the day your pay cheque is deposited into your bank account.
Select 100 times, so the transfer will keep happening until you change it.
Then click save or submit.
It’s that simple. You’ve chosen a small enough amount that it won’t be missed, and if you leave it alone, it will slowly accumulate into a decent emergency fund.
Here are a few more pitfalls to avoid:
🛍️ Treating “emergency” like “sale ends tonight”
💸 Saving what's left (spoiler: nothing’s left)
📦 Hiding savings in Venmo or under your bed
📱 Ignoring budgeting apps (they’re free, friend)