Education Goals

  • What is an Emergency Fund?

  • What is an emergency?

  • What is not an emergency?

  • How do I build it?

  • Your First $1,000

  • Track Your Progress

Week 2.0: Start an Emergency Fund by Hellen Lovato

What is an Emergency Fund?

An emergency fund is money you set aside to help you on times of financial distress, without opting for last-minute unplanned loans, maxing out your credit card, or selling and mortgaging your existing assets.

Essentially an Emergency Fund is a financial safety net for for future mishaps and/or unexpected expenses in life.

Without an emergency fund you’ll be left scrambling to afford your lifestyle and support your family.

Week 2.1: What is an Emergency Fund? by Hellen Lovato

What is an emergency?

  • Car accident

  • An unexpected medical bill

  • Roof leaking

  • Loss of job

What is not an emergency?

  • That TV that you’ve been eyeing finally going on sale

  • Your favorite store having a sale

  • Birthday/Holiday gifts

  • HOA fees

Week 2.2: What is an Emergency? by Hellen Lovato

How Do I Build an Emergency Fund?

1. Make a budget

2. Set a monthly savings goal

3. Set up a direct deposit

4. Save unexpected income

     

      1. Make a budget

      Great thing you created a budget last week! Let’s do a quick refresher:

      1. Calculate your monthly income
      2. Calculate your expenses
      3. Subtract your expenses from your income to equal zero
      4. Track your expenses

       

      Week 2.3: How Do I Build an Emergency Fund? by Hellen Lovato

      2. Set a monthly savings goal

      Having a goal for your money can help you stay motivated. Calculate your monthly living expenses. Emergency funds should typically have three to six months’ worth of expenses. Set aside a comfortable amount from your salary each month.

      Remember S-M-A-R-T

      Specific. Measurable. Attainable. Realistic. Timely. 

      3. Set up a direct deposit

      Consider setting up direct deposit from your paycheck to your savings.

      According to experts the best place to keep your emergency fund is in a high-yield savings account.

      That way it pulls out of your income before it lands in your checking account.

      Out of sight out of mind!

      4. Save unexpected income

      Have left over money from last month’s budget?
      Feed it to your Emergency fund!

      Unexpected windfall?
      Into the Emergency Fund it goes!

      Bonus from work?
      Make sure a good chunk goes towards your Emergency Fund!

      Your First $1,000

      Let’s find you some money. Believe it or not you have some hidden money laying around!

      It’s time to cut those non-essentials off!

      • Things such as magazines or item of the month, time to cancel them.

      • How many tv/music streaming services do you really need?
        Slash some of those.

      • Do you find yourself spending money on game apps?
        Time to delete those!

      • While you’re at it declutter your email inbox!
        Unsubscribe from stores that send you emails with tempting offers.

      • Delete buying apps on your phone.
        Apps. such as: Amazon, Wish, Michael’s, Wayfair, etc. etc. etc.

      Week 2.4: Your First $1,000 by Hellen Lovato

      If you’re covered by the district’s medical plan, great news!

      You can earn $250 by getting your Vital Health Profile (VHP), following up with a provider at the Health and Wellness Center, and taking two (2) Personalized Wellness & Nutrition Coaching classes offered by My Health Onsite.

      GO TO PASCOGOHEALTHY.COM FOR MORE INFORMATION!

      Let’s make some extra money to put in the Emergency Fund.

      This is when you sell, sell, sell.  To quote Dave Ramsey, “Sell so much stuff the kids think they’re next.“

      Have a garage sale, use Facebook Marketplace, eBay, or ThreadUp to help you sell the things you no longer need or want. There are a multitude of avenues to sell your items in the 21st century.

      Do you make adorable scarves for pets?

      Do you knit?

      Do you make wood signs?

      Great, consider opening an Etsy or Shopify store and sell them! Convert your talents into a side hustle to help bring in more money.

      Consider Listening to Side Hustle School; this is a great podcast to get ideas and be inspired by people and their side hustles.

      Track Your Progress

      Don’t hesitate to use our helpful trackers below this video!

      Remember your tribe!

      An accountability partner can help you measure your progress as you work towards your goals. Your tribe helps you honestly evaluate your progress.

      Make sure you:

      • Meet on a regular basis

      • Communicate with each other frequently

      • Offer each other support for difficult situations

      • Rely on each other for similar help and counsel


      Week 2.5: Track Your Progress by Hellen Lovato

      Don’t worry, you’re not expected to save $1,000 within a week.

      This is to get you into mindset of always having an Emergency Fund so that when an emergency arises you don’t have to swipe that credit card.

      YOU GOT THIS!

       

      This information is meant for educational purposes only and is not intended as financial advice.

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