In a year and a half, I managed to save $35,000 in an emergency fund.
I was in a long-distance relationship and wanted to move to my partner’s city, but I didn’t feel like I could do that until I’d saved enough to cover my expenses for a full year if I couldn’t find a job.
I worked hard to save that money, and every time I wanted to spend a little extra or stray from my budget I would remind myself why I was saving: to be with my partner.
See Business Insider’s picks for the best high-yield savings accounts »
Let’s be honest, saving money can be hard work. Putting away a year’s worth of expenses meant working long hours, staying flexible, and avoiding extra costs wherever possible.
It took me over a year and a half to meet my savings goal, but I was able to save $35,000 to serve as my emergency fund. Here’s how I did it.
Why I built these savings
First of all, to build my savings, I needed to have a strong reason to diligently stash away all of my extra funds — and that reason was my partner. We had been in a long-distance relationship for years and I wanted to move to the city where he lived, but to do that, I needed to build up enough savings to cover my expenses for a year if I couldn’t quickly find a new job.
My partner and I started dating while in college, even though we lived hours away from each other. After graduation, I accepted a job in my college town that paid a respectable $15.50 per hour. However, the job meant that I was trapped in that city for the time being. The only way to move where my boyfriend of two years lived would be to find a new job or build an emergency fund that would allow me to safely move without financial repercussions.
With that, I decided to start building an emergency fund that would cover an entire year’s worth of expenses. I set a goal of $35,000 because I knew that would cover even the worst-case scenario of expenses for an entire year. I could sustain myself during a long job hunt if I decided to make the move before I found a new job.
How I built my savings
Once I had my goal in mind, I had to get creative to build these savings.
I was lucky enough to avoid student loans
One big expense that I was able to avoid as a new graduate was student loan payments. Through a combination of scholarships and help from my generous parents, I was able to make it through college without any debt. I realize that part of my story is not feasible for every graduate, but I’m thankful that it was …read more
Source:: Business Insider