Facing a financial dilemma? We are here to help.
Every month, we’ll answer questions from you, our readers, to help you get a better understanding of your finances.
Got a question? Send it to us at hello@clevergirlfinance.com or leave it as a comment below!
Today's question is from "Harriet, 40”
Everyone says, “save 3 to 6 months of income for emergencies”, but how can I think about saving for emergencies when I can barely pay my rent?
It can be difficult to make ends meet whether you’re working full-time, overtime, or several jobs.
But at the end of the day, if you have food in your stomach and a roof over your head, you’re doing pretty well compared to many others. And with an emergency fund, you can maintain the security you’ve worked so hard for.
We know how impossible it might seem to save money when most of your paycheck goes to keeping the lights on and covering your basic needs. Yet having an emergency savings account, even if it’s $1,000, can help you in times of need.
So let’s make sure all your bases are covered, whether you need new tires, need to pay for a root canal, or end up a little short on rent.
Here’s how to create your emergency savings.
1. Start with a small attainable goal
Saving 3 to 6 months of earnings can feel out of reach, but it is possible.
One way is to start small by setting a $1,000 savings goal. However, you can choose an amount that feels like a stretch but is within reach.
Once you have a goal amount, it’s time to start saving.
2. Review your spending
When trying to save money, it can be helpful to understand where your money is going.
As you review your spending, ask yourself if there are any adjustments you can make to put more money toward your emergency savings.
For instance, you can pause certain subscriptions for a few months and use the money toward your savings goal.
Instead of going to happy hour with co-workers every week, you could go every other week or once a month to save money.
A simple way to make changes is to look at your situation like a game, a treasure hunt. Somewhere in your budget is a way to save money; it’s up to you to discover it.
3. Build savings into your budget
A simple way to start saving is to change how you save money and treat it like another expense on your budget.
You allocate money every month for essentials such as rent, transportation, groceries, etc. The next time you divide your money, decide to put a set amount aside for emergency savings.
The key is to treat your savings like a bill that you must pay every month.
Think of it as paying yourself or paying your future self. In case something happens down the line, your future self will have the money to cover expenses.
Note: It’s okay to use your emergency savings in the event of an emergency - that’s what it’s there for!
As your savings increase, don’t get discouraged if you have to use your emergency money.
This has happened to me before. I was saving consistently, and then I had to suddenly move. Emptying my savings to pay my security deposit felt like the biggest punch in the stomach—months of savings gone in a day.
While my money was no longer in my account, it wasn’t completely gone. My savings did what it was meant to do: help me in an emergency.
When I realized that my money went to helping me have a roof over my head, I felt better about my decision and refocused on rebuilding my savings.
So if something similar happens to you, don’t be discouraged. Use your money to help you, and once you’re settled, start building that savings again.
4. Explore creative ideas to increase your income
Having more money can make saving a lot easier. If you grew up with the expression “money doesn’t grow on trees,” you know that money usually comes from working for it.
But obtaining more money doesn’t have to be complicated. Here are some ways to increase your income:
Ask for a raise
One fast way to earn more is to ask for a raise. It can feel like impossible feat if you’ve never done this before. Yet asking for a raise with ongoing inflation, after years of dedication and hard work, isn’t strange.
When asking for a raise, be prepared to present your case. Use data that compares the industry average salary for your role, positive feedback from your last performance review, and evidence of the increase in the cost of living.
Remember, receiving a raise can benefit both you and your employer - you’ll be a happier and motivated employee!
Start a side hustle
With social media, apps, and e-commerce, side hustle opportunities are constantly popping up.
When searching for the right side hustle, remember that it can take time to get started and generate money, but if you find something you enjoy and stick to, you can earn a good amount of money.
Some popular side hustles that you can start right away include:
Renting out your car
Utilizing a skill you already have e.g. design, coding, troubleshooting, catering, baking etc
Teaching English online
Making and selling crafts; start with people you know and then expand online to platforms like Etsy
Virtual assistance
Apply for a better-paying job
It might be time for you to take your skills elsewhere.
Getting a better-paying job can help you jump-start your savings. So dust off your resume, add your updates, reach out to your network and start seeing what jobs are out there.
Work a part-time job
If you have some extra time, consider getting a part-time or seasonal job.
Many companies look for extra workers at different points throughout the year, and you can use the money you earn to contribute to your savings.

Don’t give up - set the intention, stay focused, take action
The hardest part about building your savings is starting. The next most challenging part is continuing to save. However, if you set an intention and stay focused, you can meet your goal.
Of course, you might have some setbacks and changes. Some weeks might be harder than others. That said, if you keep taking action towards your goals, even a small step forward will get you where you want to go.
Remember, if you need support saving money, you can check out our free savings challenges course to help you stay motivated and focused!