How I did it: I've always been a pretty good saver even as a kid.  I went to college for a very long time, which didn't leave me much to save.  I opened a savings account with ING two years ago and stocked something into it when ever I had extra money.   The emergency fund has been great help many times when I got in a jam (i.e. dryer caught fire).  But I wasn't able to build much before it was wiped out again until I finally graduated.   Unfortunately the first place I took a job at ended up in a royal brawl with one of their largest clients right after I started.  Knowing if they didn't work things out my job would be on the line, I made sure to stock as much away as possible into an emergency fund. Hours quickly dried up, but I was able to make it by being really flexible with my schedule and volunteering to work out of town.  In the end, work gave me a choice leave the company or transfer to a city 4 hours away.  As luck would have I already interviewing elsewhere and another company offered me a job 2 days later.  Since the original job paid me severance, my emergency fund went untouched .  I'm still adding to it and hope someday to get up to $20,000, which would be a year of expenses for me minus debts (I'm saving a year of debt payments in another account). 

Lessons & tips: Pay yourself first if you can.  Transfer the money into your savings as soon as you get your paycheck so you won't be tempted to spend it. 

Resources: www.ingdirect.com  Not the highest rate out there, but it's competitive and easy to use.  I love how easy it is to open multiple accounts.  I'm saving for multiple things and I really like having an account for each thing.  Also they frequently offer a bonus to open an account with them, which if you are starting with a small balance will probably make up for any difference in interest rate.

Aug 16, 01:31PM PDT | 1 comment | 8 cheers