An emergency funding crisis will happen at some point in your future. An unexpected financial issue will occur and you must be ready for anything that might come your way. Start saving an emergency fund today.

The main challenge you face in this instance is being able to meet your budget goals while still taking care of the emergency.

In the spirit of being a financially responsible adult, you must understand that it is your duty to play for the future security of your household, which includes being able to meet obligations during a financial crisis.

Having money in a reserve account will not only add security to your life, it will also increase your condidence and lessen any stess you may be feeling related to your finances. Emergency cash assistance from others will not be necessary if you prepare now, before the crisis hits.

The fact is that we never can tell when illness, accident or tragedy may impair our ability to meet our budgetary obligations. At some point an unexpected emergency will arise - will you be ready to meet this challenge?

The main message in this step is to save and set aside at least $1,000 for future emergency funding.

It is indeed a sad fact that millions of well-meaning people miss out on countless opportunities in life because they fail to plan for the future. When faced with an emergency spending situation, they are simply not prepared to meet their financial responsibilities. Their emergency fund is not enough or non-existent.

The person who saves for unexpected emergencies is insuring against all sorts of misfortunes which may come his way. He is building around his home a wall of protection that could mean the difference between ongoing prosperity or financial ruin.

The moment you begin to save in a systematic way, you'll begin to appreciate the true value of money. You'll possess a larger view of your financial possibilities. Optimism will take the place of doubt.

The act of saving for emergency funding will demonstrate that you not only have the ability to earn, but also to keep hold of your money. The point being that it takes greater wisdom to hold on to money than to make it.

In fact, nothing makes a person so absolutely independant as having "cash on hand".

Now, the obvious question is, "Where do I get the extra emergency money?"

Here are just a few proven ways to identify sources of money for emergency financial assistance:

• Review Phone Bill - Cancel any extra services that you don't need, such as call waiting, caller ID, call forwarding and three-way calling. Do the same with your cell phone. Eliminate luxury options such as text messaging and picture mail. Remember, the purpose of a phone is simply to make and receive a phone call.


• Pay Using Cash - As we discussed in the prior step, paying will cash can save you money by making you more aware of the value of the money you are spending. Don't use plastic to pay for anything unless absolutley necessary.


• Organize Home & Garage - Hold a yard sale! Items you have not used in years can quickly bring some emergency cash to your wallet. Stash the cash - it may come in very handy even sooner than you might expect.


• Review Insurance Plans - Consider increasing your deductibles in order to lower your premium costs. Save the difference. Consult with a knowledgeable insurance agent and let him/her know what you are trying to accomplish. Also, be sure to compare plans with other agencies to ensure you get the best deal.


• Stop Smoking! - If you are a smoker, you know you need to quit. Add up the amount of money you've spent during the past year. What do you have to show for it aside from a darker lung, a hacking cough and an increased chance of dying too early? Use this information as an incentive to quit and save a lot of money very quickly.


• Round Up Every Purchase - This is perhaps one of the most effective options to increase emergency funding. If you buy an item for $4.25, enter it in your check register as $5.00. Do this with every purchase. At the end of the month take the extra cash in your checking account and deposit it into your emergency funding account.

The above suggestions are just a few great ideas to consider as you create your emergency funding plan. You should also make sure of the other free resources available on our website:

• 66 Ways to Save
• Saving Fitness: A Guide to Your Money and Your Financial Future

• You Are Struggling - This let’s other people know they are not alone.


• You Are Making Steady Progress - This gives others hope that they can do the same.


• You Have Conquered Your Debt - Tell us how you did it so others will be motivated to not give up! What tools worked best for you? Share anything about how you were able to save for emergency funding, or any money saving tips that you feel will help others to achieve a debt free lifestyle.

Return to 10 Steps to Conquer Debt page from.... Step Eight: Emergency Funding page.