How to Grow a $1,000 Emergency Fund Into $3,000 in 2024

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Looking to grow your cash reserves? Read on for some fairly painless tips. [[{“value”:”

You need money available in an emergency fund at all times. You never know when you might lose a job, get stuck with a huge medical bill, or face a car repair your regular paycheck can’t cover.

Recent SecureSave data finds that 63% of Americans can’t cover an unplanned $500 expense by dipping into their savings. So if you have a cool $1,000 sitting in your savings account, consider yourself to be in better shape than the typical U.S. adult.

However, an ideal emergency fund is one that has enough money to cover three months of essential expenses. Chances are, $1,000 isn’t enough to do that unless you happen to have extremely low expenses (maybe you’re a recent college grad who lives at home).

Getting from a $1,000 emergency fund to having enough savings for three months of bills can be challenging. And it may have to be a multi-year process. But it may be possible to grow your $1,000 emergency fund to $3,000 in 2024 alone — especially if you make these moves.

1. Cut one small expense and send that sum into savings automatically

To save $2,000 during the year, you basically need to bank $167 a month. You can probably do that if you cut out all of the fun things in your budget, but that’s really no way to live. So instead, cut one expense. And you don’t even have to cut it completely — just somewhat.

Let’s say you cancel one streaming service but keep a second one you have. If that move saves you $16 a month, so be it. That’s almost $200 in savings, or 10% of your goal.

However, don’t just cut an expense and call it a day. Set up an automatic transfer so that specific amount leaves your checking account at the start of the month and lands in your savings. You don’t want to accidentally take your $16 or so in Netflix savings and blow it at Starbucks by popping in a couple of times a month.

2. Join the gig economy

Working a second job may be a tall order for you if your main job is demanding and you have a lot of obligations outside of the office, like caring for young children or pets. But perhaps it’s feasible to earn an extra $100 to $200 a month doing gig work, which could put you at your savings goal for the year.

One thing you may want to focus on is a job that allows you to set your own hours, like driving for a ride-hailing service. That way, you can take advantage of slower periods at work or in your personal life and work more hours then, but scale back when things are busy.

3. Take a less expensive vacation

Pacaso says that in 2023, the average vacation cost $1,919 per week, per person. As such, it’s conceivable that skipping out on a 2024 vacation entirely might basically get you to your $2,000 savings goal.

But let’s be real — we all deserve a getaway that allows us to recharge and experience new things. So a more realistic approach may be to see if you can spend more like $1,000 on a 2024 vacation if you’d normally be inclined to spend double. You can then put the sum you aren’t spending on things like airfare and lodging in the bank.

Another thing to consider is a staycation. The upside there is that you still get a break from work and you still get new experiences. But not paying to get places (other than perhaps some gas or train fare) or for lodging could save you a lot.

Tripling your emergency fund could put you in a much better position by the end of the year. Make these moves to give your savings a boost — and to enjoy the peace of mind that comes with it.

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