On the same thread as my previous post regarding 10, 10 and 80, what you can do goes hand in hand with managing your finances, least putting something away for emergencies thus this post is with that aim in mind, I hope you find it helpful.
Emergency funds stash is something that you can access without having to go to the bank (since that might not be an option in an emergency / natural disaster), so having some funds that you can dip into in times of need isn’t a bad idea. It is best that you put away a small amount each week and remember this is what you will use if it’s an EMERGENCY, it’s not for free spending.
Now that you have considered that you would like to start putting away funds for a Rainy Day or for Emergency what to do with keeping it so that you don’t just spend it out of hand (been there dun that once too often myself). There are various things you can do to prevent yourself and other’s in the family from just spending it on anything other than what its intended for and that is by keeping it in several locations within your home, or by keeping it in a locked safe that only you have the keys/combo to (not always the best option, but it’s a workable one to degrees).
How to store the Emergency Funds can vary, but we and remember to try and keep it in a safe location away from possible water or heat damage (having a small portable locked safe isn’t a bad option and most fit into the back of a closet or under the bed). It is suggested that you keep nothing larger then a 10.00 dollar bills since it is very much possible you could end up paying half that just for a single item in an emergency. Yes in an emergency it has been known that a single bottle of water can fetch the hefty price of 5.00 (even in non-emergency some places can get away with that out price for a single bottle).
I would recommend that you have a piece of paper or something that you jot down where you are keeping the funds stashed so you remember, even if it’s just a simple note of “10.00 in jenny’s bookcase 5th self” – as it is very much easy to louse track of it over time – this is something my mom and granny did as I was growing up and to this day we are still finding small stashes of funds in books, boxes, etc that was intended for emergency usage, but that the location of it was forgotten until it was found. In your home, it is recommended that you try and have 100.00 per person on hand (more is nice, but 100.00 as a base). Let those who are responsible in your home know where you will stash the cash if it’s been kept outside of a locked safe.
If you have a car/van/truck you should also keep upwards of 100.00 or so stashed (in lower denominations – such as 10s or 20s) as this emergency stash could be helpful to get gas for any number of reasons during an emergency (and forgetting your CC or purse ISN’T an emergency).
One thing we have done in the recent past is to get those counting jars and put our loose change into the jar and just keep adding to it until it’s full – then taking it to the bank and exchanging it for hard cash and putting that away as part of the emergency funds (since we’ve not missed the change it has proven to be helpful in times of need).
If you are worrying about how you can save money instead of right away putting away 100.00 per person (which can be costly when on a tight budget), you can just put away 1.00 a week per person it will add up over time, of course if you can save more than just a 1.00 per person that is your choice, but most of us can put aside that dollar and not miss it each month, big time if we never see it start with since it’s already put away. This is also a good way of saving for other things that you might wish to, such as your gift donation to a charity or you tithing to your church.
1.00 a week = 4.00 a month = 48.00 a year
2.00 a week = 8.00 a month = 96.00 a year
5.00 a week = 20.00 a month = 240.00 a year
10.00 a week = 40.00 a month = 480.00 a year
15.00 a week = 60.00 a month = 720.00 a year
20.00 a week = 80.00 a month = 960.00 a year
25.00 a week = 100.00 a month = 1,200.00 a year
30.00 a week = 120.00 a month = 1,440.00 a year
35.00 a week = 140.00 a month = 1,680.00 a year
40.00 a week = 160.00 a month = 1,920.00 a year
45.00 a week = 180.00 a month = 2,160.00 a year
50.00 a week = 200.00 a month = 2,400.00 a year
So as you can see putting away various amounts each week can add up over the course of the year if you remember to keep adding to it each week – or if weekly is too much of a hassle since you only get paid twice a month then find another method that works for you according to how you have the funds you have to put away, even if its just monthly that you put it away that can work as well – though you will then need to put a little more away than just a single dollar, but again you can figure out what is best for you.