As military members, we are truly blessed with the stability of our income. On the 1st and 15th of every month, I know I can count on seeing my paycheck in my account and begin paying all the necessary bills on time each month.

With this type of financial stability, it is very easy to think that an emergency fund, sometimes referred to as a “rainy day” fund, may not be necessary due to the nature of the military pay cycle.

…Until that paycheck doesn’t come. While it is very rare, there are instances in which military members don’t get paid, and it can come on with little to no notice.

Remember the Shut Down…

In recent memory, it was the government shutdown early in 2018 that left many military families frantic to figure out how they were going to cover their monthly expenses for what initially seemed to be an indefinite amount of time.

For anyone who has gone through this experience, it truly tests just how prepared a family is to handle these unforeseen circumstances.

But what about other unforeseen circumstances that are far more likely to occur than a government shutdown?

From an unexpected car repair, purchasing a last-minute flight back home for a family emergency, replacing a microwave that’s gone out, and so much more–there are countless things that can require us to pay for something we weren’t exactly expecting, or budgeting for, in that month.

This is where an emergency fund comes in, and turns an emergency into an inconvenience.

Saving for an Emergency Fund

Making the decision to start saving for an emergency fund can be both empowering and frightening. When you do this, you are saying

“Hey life, I am mad as hell, and I’m not going to take it anymore!”

You are telling life that no matter what it throws at you, you are no longer going to treat everything like a crisis, because you are going to take control of your situation. If you have made this decision–you are about to see how different life can be when you are ready for anything.

So what is the best way to save for an emergency fund? How much should you have saved?

When do you know you can stop saving for an emergency and begin putting money aside for fun things, like vacations and a new car?

The answer is this: there is no one-way, no end-all-be-all of how much money you should have saved, but there are a few helpful guidelines.

Emergency Fund for Beginners

When you are first starting out on your journey to financial freedom, it is recommended to save between $500-$1,000 for an emergency.

While this may seem like a lot of money to have sitting in the dark, never to be spent but in the event of an emergency, it is surprising how quickly this can be burned through.

A car repair, appliance replacement or trip to the hospital can easily cut in to this savings. But imagine how different it would be when your car gets a flat tire to realize how easy it could be to pay for the repair in cash, and then go on your merry way…

A small “starter” emergency fund of $1,000 can change your life. More importantly, it can change the way you view money. It takes discipline to save money and not spend it, especially if this is how you’ve learned to handle money your whole life…but you can do it.

You were disciplined enough to make it through military training–you can make it for a couple months (or less) of saving and leaving that money alone, I know you can!

Fully-Funded Emergency Fund

Once you have worked toward saving up your $1,000 emergency fund and paid off debt, start working toward saving for a fully funded emergency fund of 3-6 months of expenses.

Note: This is not 3-6 months of your income. It is how much you spend each month on necessities, such as food, rent, utilities, insurance, etc.

The amount of money you save in your fully funded emergency fund is completely up to you and how much money you feel comfortable saving. Being a military family, we are comfortable having 3 months of expenses saved, because we have such a steady income.

However, if you are considering separating from the military, I highly recommend saving closer to 6-7 months of expenses, as your income may be a move volatile in the future.

Bottom Line

You do so much to serve and protect our country–make sure you are doing the same for your family. By sacrificing a little bit now to put money away for the future, you are truly saving your family from a future catastrophe later.

If you ever need encouragement–comment below, message me, schedule a consultation for a financial checkup. You are not alone, let ‘s work together to make a better future for our family.