How I did it: I opened up a savings account at a different bank that I don't normally use.  I kindly refused their offer of checks and a debit card, so as not to be tempted to spend the money.  Each time I got paid I used 10% to go towards my EF.  Any time I was able to throw extra money into it, I did.  At the same time I continued to pay at the very least the minimum on my credit cards (95% of the time I payed an extra $30).  I also used part of my Permanent Fund Dividend check to reach this goal.

Even though I was unemployed for a short period (and underemployed now) I payed what I could towards my EF.  Even if it was $10 or $20 it was better than nothing.

Lessons & tips: The following are all things I did to reach my savings goal:

Open a savings account at a different bank (other than your primary)- decline the checks and debit card- this keeps the spending temptations at bay

Even $10 here and there is better than nothing, just put something in regularly

Be patient, even if this goal seems impossible I am proof that it is not

Get a second job to speed up your savings (like seasonal work)

Have a garage sale, sell things on eBay/Craigslist

Eat out less

Find more free things to do



If $1,000 seems too hard at first do a smaller goal of $500 or $250, then work your way up.

Resources: Money Makeover by Dave Ramsey
'Til Debt Do Us Part TV show
"Maxed Out" a credit card documentary- good to know what NOT to do with your money, made me want to open my savings account
And various other financial information online

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Oct 07, 2010, 08:53PM PDT | 0 comments | 10 cheers