Building an Emergency Fund

By: LaToya Lester

It's not an impossible task for a single parent to build an emergency fund for long-term protection for his or her family members they are charged with providing love and care. Actually it's a pretty good idea for anyone. That said the common sense question to be asked and answered is do they have the mental discipline to honor the fund? Since it's conceptually different from a savings bank account where you're drawing a meager interest rate, is it really possible not to "dip-into" the emergency fund for reasons other than the original purpose intended?

There are several successful methods that can be and have been used to begin building a single parent emergency fund. Here are a few of the usual suspects that come to mind:

#1 - Certificates of Deposits. The rates may not be anything to write home about, but at least you're saving some money each year.

#2 - A large jar set aside at home where you can toss all of your loose change every day or night you come home. You'll find it can add-up rather quickly.

#3 - Start your emergency fund thinking: "small, “even if it's just $20 bucks out of each paycheck.

#4 - Treat your emergency fund as if it were a "bill" to be paid each month. When paying your usual monthly bills, pay your emergency fund $5 dollars, too; more if you can afford it.

#5 - Think $1.00 bills, not $10's or $20's. Each day or night when you get home, take a peek in your wallet or purse, dig out all your $1.00 dollar bills, and stuff them in your emergency fund jar.

#6 - If you drive an older car, dump collision and comprehensive, increase your liability
coverage, and put the $$$$$$$ in your emergency fund.