5 tips to build an emergency fund from scratch, even if you don't have much extra money - Business Insider

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An emergency fund generally consists of three to six months' worth of expenses. The more, the better

Some people have gotten creative, using credit cards or tax refunds to start or pad their emergency fund. Here are several tips to put together your cash buffer, no matter how much you earn. in six months, and says that saving was an important part of her method.

Then, the money grew in two ways: with her deposit each week, and with the interest her money earned. Even making small automatic deposits each week can add up quickly, and even snowball with interest.started her emergency fund with just her tax refund that she was planning to spend. "One year, about 12 years ago, I was due a tax refund of $5,000 from the IRS," she writes.

The cards continue to earn money as purchases are made, which can then be saved. Proctor writes that this strategy only works if you're diligent about paying off your cards — accruing interest on your cards and paying more for purchases could negate any earnings and savings.was living in New York City on a small salary when she was starting her career, but knew she needed an emergency fund.

 

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