How To Save $1,000 For An Emergency Fund Fast

Is my emergency fund too small | What is an emergency fund | How much should I have in an emergency fund

This article may contain affiliate links, which means we may receive a small commission for your click. We only recommend products that we trust. Read more here.

Everyone has unexpected expenses come up once in a while, yet 61% of Americans aren't equipped to cover a $1000 emergency. Because of this, it makes sense to save $1000 for an emergency fund fast.

There are many ways to save money in a hurry, and in this article, we'll go over simple ways to build a basic emergency fund so that you're prepared. $1000 is a great start to cover many of life's curveballs, so let's jump right in.

What Is An Emergency Fund?

An emergency fund is a place you store money if you have an unexpected expense or lose your income due to sickness or job loss and need to cover the bills. Many emergency funds are stored in a high-yield savings account or a money market account, as this money is easily accessed when needed, but still separate from your checking account so not to touch it when it's not.

How Much Should I Save In An Emergency Fund?

Financial experts generally agree that you should have three to six months' worth of living expenses saved up in your emergency fund. That said, at the bare minimum, having $1000 saved in your bank account can be helpful for most minor mishaps. You'll also want to determine what your spending habits are like and what types of irregular expenses you have. If you have some months where you spend a lot more than others, it may make sense to have more than six months saved up.

Why Do I Need An Emergency Fund?

Having an emergency fund helps create financial security and peace of mind. In addition, it helps prevent you from going into credit card debt when you incur unplanned expenses.

Even with $1000 saved in an emergency fund, you can cover unexpected expenses such as:

  • Car repair
  • A trip to the emergency room
  • Washer/Dryer replacement
  • Refrigerator replacement
  • The deductible for your homeowner's insurance or basic home repairs

Because we never know when a mishap will strike, having money in an emergency fund simply makes good financial sense.

Where Should I Keep My Emergency Fund?

Storing your emergency savings in an online savings account makes sense as it's easily accessible and has a higher interest rate than a traditional brick-and-mortar bank. CIT Bank has an excellent savings builder account that promotes regular savings by paying out higher interest rates to those who save monthly.

Of course, you can use any bank you want. The first step to starting an emergency fund is opening a separate bank account than your checking account. Keeping your savings separate from your checking account is key as you'll be less likely to spend it.

How To Save $1000 For An Emergency Fund Fast

$1000 may seem like a lot of money when you have nothing saved, but by employing the below methods, you should be able to save up your first thousand in 90 days or less. Of course, everyone's financial situation is different, and some may be able to save $1000 much faster than others.

Here are 7 great ways that you can save $1000 for your emergency fund fast

Set a Savings Goal

A great way to save money is first to set a savings goal that tells you how much you want to save, how you will do it, and how much time you anticipate it will take to save the money. In this case, you're looking to save $1000. To reach $1000, it may make sense to break down your savings goals into a monthly savings amount or a weekly savings amount.

The next 6 steps will help you more clearly define your savings goal.

Cut Back On Spending

The easiest way to save money for your rainy day fund is to spend less of it. If you're an impulsive buyer or simply spend a lot of money on things you don't actually need, then first and foremost, cut back as much discretionary spending as you can. Small changes in your spending habits can go a long way.

The more successful you are at cutting back on spending money where you don't need to, the more money you'll have saved for unexpected expenses. Not overspending has an additional effect of giving you more money to pay off debt faster and saving up for big purchases like a home or a child's future college tuition.

Cut Expenses and Skyrocket Your Savings

Save more money each month with our 19+ strategies to lower your expenses. You'll also learn top tips to pocketing more money in your day-to-day life.

Create a Budget to Identify Where You Can Save

Having a budget and tracking your spending is almost always a good idea and having one is an easy way to identify where you can cut back in your day-to-day spending. When creating a budget, break up your expenses into what's a need and what's a want. Once you determined your wants vs. your needs, figure out if there are any wants that you can spend less money on, even if temporarily while you save up your first $1000 for your emergency fund.

When trying to save money fast, all extra cash counts, and that includes the $5 coffee you're buying every day. In fact, if you happen to pay $5 for coffee 7 days a week, you'd save $450 of your $1000 in 90 days just by skipping the coffee.

Even after you've cut back on your wants, you may not have enough money saved in the timeframe you wish, so the next few methods will talk about that.

Use An App To Help You Save Money

Several apps exist to help you save money in a variety of ways. These apps are often free though some may have a one-time cost.

Swagbucks, Honey, and Ibotta, are cashback apps that promote savings when you make everyday purchases.

  • Swagbucks is an online rewards platform where you can, in part, earn money for shopping online, scanning your receipts, filling out surveys, and playing games on your phone. If you're already shopping, then why not save a little with each transaction at supported retailers.
  • Honey is a browser extension that finds coupon codes at most major websites. Not only can you find coupon codes to save money, but Honey will also give you Honey Gold when you shop with the extension. For every 1000 Honey Gold that you collect, you'll be able to redeem $10.
  • Ibotta allows you to scan receipts and save on specific items at hundreds of retailers. Before you go shopping or to the grocery store, check out Ibotta's daily deals to see if there's anything you can save money on.

Trim is a paid app that helps you save money in a different way. Instead of giving you cashback, Trim automatically negotiates certain bills with your service providers. By doing this, Trim can lower your monthly bills for you. The app also attempts to identify subscriptions that you're paying for and may no longer be using. Canceling unused subscriptions is a great way to save money each month.

Lower Your Cable, Internet, and Phone Bills

Sign up for Trim and get your bills negotiated automatically. Trim will also identify any subscriptions you may no longer be using to help you save even more money!

Affiliate Disclosure: This is an affiliate link and we may earn a small commission if you click and make a purchase. This helps our site grow and provide you with more content. Read our full disclosure here.

Treat Yourself Like An Expense

Treating yourself like an expense means paying yourself first and then spending money. To get started with this, set up an automatic transfer from your checking account to your emergency fund or other savings account whenever you get paid. This can be any amount of money, as long as you're saving before you're spending money on anything else.

A good reason for doing this is that you force yourself to save money right away, instead of saving money based on what you don't spend at the end of a given month or pay period. This works well if you have a weekly savings goal as well. For example, say you want to save $1000 for your emergency fund in 90 days, or 12 weeks. That's approximately $83.34 per week that you'll need to save. Therefore, set up an automated transfer of $83.34 for each week until you reach your goal.

Increase Your Earnings

You can only save so much money, and if you have a low income, it may be challenging to reach your $1000 emergency fund savings goal as fast as you'd like. Taking on a second job or a side hustle can be just the thing to reach your $1000 savings goal quickly.

Here are some ideas for something you can do for 90 days or less to earn $1000.

  • Drive for DoorDash: DoorDash drivers earn tips for delivering food from restaurants to customers at their homes.
  • Tutor on Chegg: Tutor others on Chegg and earn $20 an hour or more, depending on your subject area of expertise.
  • Do yardwork for neighbors and family: Mow lawns, rake leaves, and shovel snow to earn quick cash.
  • Drive for Lyft or Uber: With Lyft and Uber, you'll drive people to their destination and earn money plus tips for doing so.
  • Petsit on Rover: Rover hooks up pet owners with petsitters. Get paid to take care of animals to earn extra money.

Sell Stuff You No Longer Need

Having a yard sale and selling belongings that you don't need can be a quick way to raise up to $1000. Some towns have flea markets where residents can rent a table and bring their belongings to sell. You can also use sites like eBay to sell your unneeded belongings.

Every little bit counts when you're saving emergency money to cover a mishap or your monthly expenses if you lose your income.

Save Money With Honey When You Shop Online

Honey finds discount codes whenever you shop online. You'll also earn Honey Gold when you make qualifying online purchases. Honey Gold can be redeemed for gift cards and cash!

Affiliate Disclosure: This is an affiliate link and we may earn a small commission if you click and make a purchase. This helps our site grow and provide you with more content. Read our full disclosure here.

Wrapping It Up

Having an emergency savings account is critical to cover unexpected expenses and help avoid credit card debt. In this article, we discussed what an emergency fund is, why they're important, and how to save $1000 fast for an emergency fund.

Taking baby steps to save money not only protects you from unplanned expenses but also promotes having more money in the future for other things such as getting out of debt, making a major purchase, or investing for your retirement.

What do you do to save for emergencies?

23 thoughts on “How To Save $1,000 For An Emergency Fund Fast”

  1. We try to have two emergency funds. One is for unexpected household things; this usually has at least $1,000 in it. The other is for loss of job and for that we’re working our way toward 6 months if both of us lose all our income (or 12 months if one of us loses our job).

  2. As small business owners we have always had an emergency fund. You never know when you are going to need it.

  3. Luna S

    Great article! I always try to make sure we have a month and a half worth of bill money in the savings including rent, electric, etc. That way if one of us loses our job we will be alright having just one income for a while.

  4. renee

    We just started an emergency fund and these are amazing tips!

  5. Kenneth

    wow i hope everyone has this so called emergency fund especially during this pandemic..i already used all of it during lockdown.hopefully will be able to start again

  6. I actually don’t have an emergency fund but after reading this I think I should make one!

  7. I feel like financial health topics like this should be taught in school! I grew up in a home that lived paycheck to paycheck and savings was something I had to figure out on my own as adult.

  8. Mila R

    I love my new account that rounds each payment up and I have over $1k already from these small amounts.

  9. At the outset, I have 3 months of expenses set aside as emergency fund. However, given the current climate I have been re-thinking my financial commitments and resources etc. Your suggestion of 6 months sounds sensible and a great way to move forward. Thank for the suggestion.

  10. Mayuri

    Emergency fund is so important and I feel that it should be the forceful saving of this fund or else we try to use it for other miscellaneous funds. This is such an informative post!

  11. Having an emergency fund can help you deal with unforeseen events. It’s important to have one. Working on it.

  12. Seyi

    Thanks for this reminder. I depleted all my savings late last year to upgrade my car. I can tell you that this year, with all its exigencies, has been a struggle. Thanks.

    1. My wife and I depleted our savings this year to pay off debt and start our online business. I found it a bit risky to deplete my savings but I’m glad I did it.

  13. very helpful! I do need to work more with my emergency fund as we had to use it this spring and still didn’t fully finish it

  14. I love this post! I also read your save $5 a day post and it’s so helpful. Thanks for these tips!

  15. my tips of saving emergency fund is daily basis of a small amount, then the fund grows bigger. cheers, siennylovesdrawing

  16. Oh my goodness, this is such a useful post! I felt like I needed to hear this so badly. I have been wanting to start an emergency fund recently but I didn’t know where to start from or what my minimum amount should be. Thank you so much for sharing this.

    1. Glad this post was helpful! Saving at least $1000 is a great start for an emergency fund.

  17. We have one emergency fund with 1000 in it, but I would definitely recommend having 2. One with the 1000 and then one for 3-6 month living expenses. That is our goal once the new year hits. I am trying to save all the money I can.

    1. I hear that! We are working on getting back to 6 months’ worth of living expenses saved up. It may take some time to get there, but that’s part of saving!

  18. Indeed such a good read. We are really planning to have our own emergency fund especially these days. We really need to have one and planned every spending.

    1. We emptied out our emergency fund this year due to COVID-19 concerns. We are in the midst of replenishing it.

Leave a Comment

Your email address will not be published. Required fields are marked *