Emergency funds provide hedge against financial emergency. Emergency funds are absolutely necessary. However, emergency savings don’t build up overnight, it takes time and effort, and you need to be consistent with saving. It is not easy if your income is small but with the right strategies, building emergency funds is easier than you think.

Do you have an emergency funds, how did you build it? How long can your emergency funds pay your expenses?

I don’t really have an emergency fund at this time seeing as I just about live paycheck to paycheck. I try to keep X amount in my savings at all times, but due to financial situations I’m not really able to do this. I’d love to have a second part-time job to help me build an emergency fund, but I’ve had little luck in finding one.

Unfortunately mine is just my 401k, if any Emergency came up our credit card couldn’t cover was needed I’d go there.

Unfortunately not and no one will give me a credit card 🙁

We had a good sized 401K saved up before I got laid off. With the layoff and being unemployed for four months, and supporting a family of 5, we went through it really fast. In that time though we used some of it to pay off our vehicles, which helped immensely. This new job I am starting on Monday is returning to the place that helped me build it up. I get annual bonuses there, so we will be able to get back into the swing of things fairly quick.

GamingCave said:

Unfortunately mine is just my 401k

Thanks for reminding me that I have a 401k when I worked at Walmart. So yes, I guess I do have one after all, but it’s probably to be tucked away until a critical need.