Recently, we had a sit-down with one of our Bravewood users, and his story left us both inspired and enlightened. His experience showed just how important it is to know how to build an emergency fund, especially when life throws surprise expenses—like a traditional wedding bill you didn’t plan for—your way. Read it here.
His experience is a perfect example of why financial preparedness matters. Life has a way of throwing unexpected expenses our way—whether it’s a wedding, a medical emergency, or even a sudden job loss. The best way to stay ahead? Building an emergency fund.
And guess what? You don’t need years to do it. With the right strategy, you can build a solid emergency fund in just 6 months or less.
But first things first, what is an emergency fund, and why do you need one?
An emergency fund is a dedicated savings cushion that helps you cover unexpected expenses—medical bills, car repairs, job loss, or in our Bravewood user’s case, an unplanned “two-scooter” expense for his in-laws!
Think of it as your financial seatbelt. You don’t plan for accidents, but if one happens, you’ll be grateful you buckled up.
Without an emergency fund, you might find yourself borrowing at high-interest rates, selling valuable assets, or—worst case—getting stuck in a cycle of debt.
So, how do you build a thriving emergency fund in 6 months or less?
1. Set a Clear Goal
Before you start saving, determine how much you need in your emergency fund. A good rule of thumb is to aim for 3 to 6 months’ worth of essential expenses (rent, utilities, food, transportation, and insurance).
If that seems overwhelming, break it down:
• Minimum goal: ₦200,000 – ₦500,000 (for small emergencies)
• Ideal goal: 3 months’ living expenses
• Ultimate goal: 6 months’ living expenses
Let’s say you want to save ₦600,000 in 6 months. That means setting aside ₦100,000 per month. If that’s too much, adjust your timeline, but stay consistent.
2. Cut Out Unnecessary Expenses
One of the fastest ways to save is to reduce unnecessary spending. Take a hard look at your expenses and ask yourself these questions:
• Do I really need this subscription?
• Can I cook at home instead of ordering takeout?
• Is there a cheaper way to commute?
Even small changes can add up. For example:
• Cutting out ₦2,500 weekly on snacks or drinks saves you ₦60,000 in 6 months!
• Reducing your data/entertainment expenses by ₦5,000 monthly adds ₦30,000 to your fund in 6 months.
The key is sacrifice now, peace of mind later.
3. Automate Your Savings
Make saving a non-negotiable habit, just like our user did. You can do this by setting up an automatic transfer to a dedicated emergency fund account every payday.
If you get paid monthly, arrange for a fixed percentage (e.g., 15-20% of your income) to be moved immediately. If you’re a business owner or freelancer, create a system where a portion of every payment received goes straight into savings.
This way, your money goal is in the loop.
4. Use a Low-Risk, High-Return Investment Account
Leaving your emergency fund in a regular savings account is okay, but keeping it in a high-interest, low-risk investment account is even better. Because when it comes to learning how to build an emergency fund fast, where you store your savings matters just as much as how much you save.
Look for money market fund investments, fixed deposits, or investment apps with good interest rates to do this. (e.g., Bravewood, Piggyvest, etc.).
The goal is to ensure your money grows while being slightly inconvenient to access.
5. Increase Your Income
If your current income barely covers your expenses, you might need to earn more instead of just saving more.
To do this, consider:
• Freelancing (writing, design, video editing, etc.)
• Selling a skill (tutoring, baking, photography)
• Affiliate Marketing e.g CPA marketing (a marketing system where you earn a commission for promoting the products/services of brands)
• Monetizing a hobby (content creation, YouTube, or podcasting)
• Taking up a part-time job or weekend gig
Even an extra ₦25,000-₦40,000 monthly can make a difference.
6. Save Unexpected Money
Instead of splurging on unexpected cash (bonuses, refunds, gifts), save it.
Got a ₦50,000 bonus? Put at least ₦30,000 into your emergency fund. A relative gifted you ₦20,000? Save half.
These small windfalls shorten your savings timeline dramatically.
7. Stay Disciplined and Track Your Progress
Saving is easy to start but hard to maintain. The trick, however, is a mindset shift. Here’s what you should do:
• Track your progress weekly or monthly. Seeing your fund grow keeps you motivated.
• Avoid dipping into your emergency fund for non-emergencies. If it’s not urgent and necessary, don’t touch it.
• Remind yourself why you’re doing this. Whether it’s to avoid debt or have financial peace of mind, keep your goal in sight.
In Just 6 Months, You’ll Be Ready for Anything
Imagine this: It’s six months from now, and an unexpected expense pops up. Instead of panicking or borrowing, you handle it effortlessly—just like our Bravewood user did.
That’s the power of a thriving emergency fund.
So if you’re still wondering how to build an emergency fund quickly, the answer is to start today—no matter how small. Even if it’s just ₦3,000 a week, it’s better than nothing. Commit to the next six months, and your future self will thank you.
Bravewood provides Nigerian professionals with low-risk, high-return investment products, licensed by the Central Bank of Nigeria.
