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3 Experts Help Grow Your Emergency Fund Comments

  • By Katie Karlson
  • May 04, 2011

green magic PRINTYou’ve set up your emergency fund and socked away enough to quell most of your panic. But be honest: Did you reach your target of three to six months’ worth of expenses?

If you’re laughing (or sobbing) right now, that’s not a good sign.

Here, three top money experts share their secrets for building a bigger cash stash.

Make it your power money.
“I found it empowering—and fun—to think of my emergency fund money as an ‘F-U Fund’: cash that not only covers a crisis, but gives you the freedom to walk away from a bad situation. Even when it gets drained, you’ll feel excited about replenishing it.” —Manisha Thakor, author of On My Own Two Feet

Plan for a crisis.
“You will need a rainy day fund—because it is going to rain. Saving for your emergency fund needs to come right after charitable gifts in your budget. Inspire yourself to save by remembering that an emergency fund allows any crisis to become simply an inconvenience.” —Dave Ramsey, author of The Total Money Makeover

Enjoy the saver’s lifestyle.
“Put 50% of each paycheck into a savings account right away. Then, use your debit card and your phone’s bank app to force you, in a gentle way, to live on only what’s in your checking. Try not to tap savings, and once a month distribute that cash to your emergency fund, IRA, other goals.” —Galia Gichon, creator of the My Money Matters kit

Speaking of growth. How's your EF doing?

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