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How To Safely Double Your Emergency Fund…

July 11, 2012

I know why you’re reading this.  You want to take your $1,000 Emergency Fund and make it $2,000.  And now I assume you want a list of things to do starting off with the typical “Sell your crap on Craigslist” *tip* that most PF (personal finance) bloggers like to give.  Yeah umm…keep your stuff, I wouldn’t ask you to sell anything unless you wanted to get rid of it for good.

I also don’t like the fact that if you read any posts on this blog or any other PF blog, you should know better than to believe that you can just up and double your Emergency Fund.  Come on now, people like me are here to help and educate but don’t be stupid.  If this was true then EVERYONE would be doing it over and over again.

Don’t fret though, there IS a way to double your fund!  It’s actually a very simple process, it’s called SAVE.

Keep saving your money just like you have been, compound interest will be nicer than the parents of your first ex.  The only safe way to double your Emergency Fund is to keep on saving and let it grow.  Yes, I fully agree with sticking it in a High Yield Savings Account and preferably with ING Direct (I use them and have had nothing but excellence from them) but if you have to go to extremes or want to avoid online only accounts, there are other options.

I wish I had saved the site that I read this on but I thought it was genius and if you happen to have kids, they would thoroughly enjoy this method.

When you get a little bit of spare cash, go to the bank and buy the $1 gold coins.  Find an old shoe box -or if you really want to get creative, find an old trunk or small chest from a garage sale of thrift shop- and place the gold coins in there and keep the box on the top shelf in your closet.  Your kids will think they are pirates keeping a chest of gold and it would be too much of a hassle for you to grab gold coins and spend them.  If the day comes that you honestly need them for that emergency, then take them to the bank to cash them in or deposit them in your account.

I’m 22 years old and I can’t wait to start this and get my treasure chest started!


From → Savings

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