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5 Steps to Rebuilding Your Emergency Fund

Meeting your emergency fund goal is a huge accomplishment. So, when it comes time to spend the money for an urgent or unexpected purpose like paying a big tax bill, draining the fund you worked so hard to build can be extremely disheartening. Having to fork over funds you've spent several months saving is a letdown and it's easy to lose momentum. The best way to stay on track is to revise the road to rebuilding your emergency fund; here are simple guidelines for doing just that.

  1. Set a two-part goal: how much money you want to save, and a deadline to squirrel away that amount.
  2. Play around with my savings calculator to help you determine the specifics.
  3. If you'll need to save more money per month than you have been, consider tracking your spending for a month for a clearer picture on where you can cut back.
  4. Adjust the amount you have automatically transferred from your checking to savings account each month to reflect your new savings goal.
  5. Redefine what is an emergency, and only use your fund for those predetermined purposes.


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