The First Step to Setting Up an Emergency Fund

While you know it’s important, setting up an emergency fund seems like an impossible task at first. You already have credit card bills, educational loans, rent or a mortgage to pay, maybe even a medical bill that needs to be paid off as soon as possible. You may have even tried to start an emergency fund in the past, but used it to pay for a credit card bill or something that was not a necessity. Where will you find the leftover money to start an emergency fund?

Setting up a successful emergency fund starts with properly learning how to start an emergency fund. The most important step toward implementing an emergency fund plan into your budget is changing your mindset.

Optional or Necessary?

Often in life, people see an emergency fund as something they should be working toward, possibly as an extra responsibility rather than a necessity. This thought process leads to fulfilling immediate needs and wants rather than planning for the future. Changing this mindset to seeing an emergency fund as a necessity will allow for future preparation and decreased stress.

Developing a Clear Intent

The easiest way to change your mindset surrounding an emergency fund is to realize exactly why you’re working toward your budgeted goal. Think of scenarios in which you would like to be prepared. For example, my emergency fund flourished when I got a dog. I was terrified he would need some form of treatment in the future, so I built up an emergency fund specifically for his health. A year later, I used that emergency fund to remove a tumor from his side. I was incredibly thankful to my past self for preparing.


Putting money into your emergency fund has to be seen the same as paying off a bill or paying for your rent. It needs to be a top priority. Through creating a detailed budget that includes money set aside monthly or bi-weekly for an emergency fund, you’re turning the idea of an emergency fund into action.

Closing Thoughts

Choosing to have a mindset in which your emergency fund is prioritized will better help you with setting up an emergency fund and reaching your financial goals. However, life challenges can occur at any time and may occur before your emergency fund is fully prepared. Having a trustworthy partner to aid in emergency funding beyond your preparation is crucial. Prioritize your emergency fund, but remember that Lift Credit is always there to help you if unexpected challenges occur.

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