7 Simple Steps to Build a Starter Emergency Fund Fast: A Guide from a Dave Ramsey Certified Financial Coach
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Emergencies are inevitable. Whether it’s an unexpected car repair or a medical bill, having a financial cushion can prevent these situations from becoming crises. As a Dave Ramsey Certified Financial Coach, I emphasize the importance of building a $500 or $1,000 starter emergency fund as the first step toward financial peace. I’ve seen many emergency funds built just in time, saving many people much heartache and stress, time and time again. If you want financial freedom, this is where you start. Here’s how you can achieve this goal quickly, even on a tight budget.
And, if you want advanced help with your emergency fund, there is more information and resources on the below steps in my vastly discounted Emergency Fund Creator Course here. Check it out before the sale is over!
Let’s get to it!
If you are new to the Dave Ramsey Financial realm, check out my post here on how to get started on the best basic financial education around. If you are ready to learn more about the Financial Peace University workbook, check it out here on Amazon.
1. Start with a Goal and a Deadline
Setting a clear, short-term deadline—such as 30 or 60 days—creates urgency and focus. Decide whether you need $500 or $1,000, depending on your income, and write it down as your goal. Place it somewhere visible to remind yourself daily why this fund matters!
2. Sell Unused Items for Fast Cash
Look around your home for items you no longer use or need. Clothing, electronics, furniture, or old toys can bring in cash through online marketplaces like Facebook Marketplace, eBay, or local consignment shops.
Pro Tip:
Take high-quality photos and write clear descriptions to maximize interest and sell items quickly.
3. Slash Non-Essential Spending
For the next month, temporarily cut non-essential expenses such as:
Dining out or takeout
Subscriptions (streaming services, gym memberships, etc.)
Impulse purchases
Every dollar saved goes directly into your emergency fund. This temporary sacrifice will pay off when you’re prepared for unexpected expenses.
Need strategies on how to do this? I know, it’s hard! Just check out my course here with tried and true ways to cut the budget and still enjoy your life… ways that I have personally succeeded with and still use today when things get tight.
4. Work Extra Hours or Pick Up a Side Hustle
If you can increase your income, you’ll reach your goal even faster. Consider:
Taking on overtime at your current job
Driving for a rideshare service like Uber or Lyft
Babysitting, pet sitting, or house cleaning for neighbors
Freelancing your skills (writing, graphic design, etc.)
Even an extra $100 per week adds up quickly.
Much more on this in the course too, if you need it!
5. Budget Every Dollar
A zero-based budget ensures every penny you earn is allocated. Begin with your essential expenses (rent, utilities, groceries) and direct any leftover funds toward your emergency savings. Tracking your spending keeps you on course and helps you identify areas where you can cut back.
Here is a zero-debt budget worksheet to download for free.
6. Pause Debt Payments Temporarily
If you’re making extra payments on debts, pause those temporarily. Make minimum payments for now and redirect the extra money to your emergency fund. Once your fund is fully established, resume your debt snowball plan with confidence.
Once you finish the emergency fund and are ready for baby step two, getting rid of debts, check out my breakthrough course for Crushing Debt here. It will change the way you look at debt and empower you with a ton of resources, modern tactics, as well as Biblical financial wisdom and strategies so you can crush your debt with great speed and joy!
7. Embrace Small Wins
Every little bit counts. Save loose change, skip the coffee shop, or take your lunch to work. Deposit even $5 or $10 at a time into your emergency fund. The act of saving, no matter how small, reinforces positive habits and brings you closer to your goal.
The Payoff: Peace of Mind
By building this starter emergency fund, you’re taking control of your financial future. When life throws you a curveball, you’ll be ready. This simple fund provides the confidence and stability you need to tackle bigger financial goals.
Ready to Build Your Fund?
If you would like more guidance, resources and encouragement, I’m here to help. Check out my revolutionary Emergency Fund Creator course here (ON SALE NOW). Let’s create a plan to secure your emergency fund and start you on the path to real, long-term financial freedom. You CAN do this!
Your Financial Coach, Victoria
