In order to build an emergency fund there are two things you should know 1) know your spending habits and 2) be honest with yourself regarding your spending habits because savings requires discipline.

My spending habit is “out of sight out of mind”. I opened up an HSBC account because it had the highest interest rate than most banks and the minimum deposit is $1.00. I opened both an online savings and checking. The checking only allowed me the ability to deposit money electronically and to get an ATM card when I needed cash on the flash. Transfers between banks takes 4 days. Having a checking & savings from the same bank alleviates this issue.

Other banks I highly recommend are ING DIRECT and FNBO DIRECT. Do your research and bank where you feel most comfortable.

1) I have a flex spending account and filed an automatic deposit to my emergency account. Each time I send in a claim form to get a refund I have it deposited straight into my emergency fund.

2) Your company can do multiple direct deposits. I have $100.00 deposited into my emergency fund every payday and NET amount to my regular account. I add 1% raise to the emergency fund when I get a raise.

3) I roll my own change and deposit that into my account and transfer to my emergency fund.

4) I purchase items that have a rebate. Rebate checks are deposited into my emergency fund.

5) X-mas and B-day money – I create a pie. 30% to savings 30% to bills and 40% for fun/misc. I modify those percentages when needed but this is my standard. I like to save and have fun too. This works well for bonus money and tax refunds too!

6) I have an credit card that has cash back rewards. I put all checks I get back into my emergency fund.