• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Cult Of Money

Cult Of Money

Personal finance for the crypto-curious.

  • About
  • Podcast
  • Contact
  • Cryptocurrency
      • How To Start

      • What Is Cryptocurrency And How To Invest?
      • What Is Bitcoin And How Does It Work?
      • What Is Ethereum And How Does It Work?
      • Most Common Crypto And NFT Scams (And How To Avoid Them)
      • Proof Of Work vs. Proof Of Stake vs. Proof Of History
      • How To Invest In Crypto In Your IRA Or 401k
      • Tools + Resources

      • Best Cryptocurrency Exchanges
      • Best Cryptocurrency Wallets
      • Best Crypto Savings Accounts
      • Best Tax Software For Crypto And NFT Traders
      • Reviews

      • Coinbase Review
      • Gemini Review
      • BlockFi Review
      • Binance Review
      • Hodlnaut Review
      • Ledger Wallet Review
  • DeFi
      • How To Start

      • What Is DeFi?
      • What Is Staking Your Crypto?
      • Centralized vs. Decentralized Exchange
      • Tools + Resources

      • What Is Uniswap And How Do Decentralized Exchanges Work?
      • Reviews

  • NFT
      • How To Start

      • What Is An NFT?
      • Tools + Resources

      • Most Popular Play-To-Earn Crypto Games
      • Popular Projects

      • What Are VeeFriends And Are They Worth It?
      • Bored Ape Yacht Club NFTs Are Popular (And Expensive)
      • What Is The Sandbox And How Can You Play?
      • Why Visa Bought A CryptoPunk
  • Investing
      • How To Start

      • Tools + Accounts

      • Reviews

  • Personal Finance
      • Banking

      • Best Bitcoin Rewards Checking Accounts
      • Tools + Resources

      • Tax

      • Income Tax Prep Guide
      • Bookkeeping And Accounting For Crypto And NFTs
Saving Money

How I Saved a $10,000 Emergency Fund on a Low Income

By Alexa Mason • October 27, 2021

At The Cult of Money, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners whom we receive compensation from. This doesn’t influence our evaluations or reviews. Our opinions are our own. Learn more here.Advertiser Disclosure

There are thousands of financial products and services out there, and we believe in helping you understand which is best for you, how it works, and will it actually help you achieve your financial goals. We're proud of our content and guidance, and the information we provide is objective, independent, and free.

But we do have to make money to pay our team and keep this website running! Our partners compensate us. CultOfMoney.com has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear. The Cult of Money does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with).

For more information and a complete list of our advertising partners, please check out our full Advertising Disclosure. CultOfMoney.com strives to keep its information accurate and up to date. The information in our reviews could be different from what you find when visiting a financial institution, service provider or a specific product's website. All products and services are presented without warranty.

No matter how much money you make it is possible to still save. Here's a real life example of how to save emergency fund on a low income.

I started saving an emergency fund almost a decade ago in 2012. At that time I was a single mom working two days jobs while trying to build an online freelance business.

I had desperately wanted to quit both of my day jobs and freelance full time, there was just one thing holding me back: my lack of savings.

When I decided that a $10,000 emergency fund was my magic “quit my job number” I was determined to make it work.  I was only making close to $20,000, or a little more, per year at this time but I knew I’d find a way to make it happen.

Here’s how I was able to save a large emergency fund on a low income.


Table of Contents
I Prioritized My Spending
I Side Hustled

I Saved Bonuses and Income Tax Refunds
I Hit the $10,000 Mark With Fierce Determination

I Prioritized My Spending

My first step was to prioritize my spending. I was already on a pretty strict budget but I knew there were a few more things I could do to take it even further.

I bought a $10,000 trailer (took out a loan) that had a $226 monthly payment on a four year term. This one move drastically reduced my living expenses. I also set a strict grocery budget and ruthlessly adhered to it. I didn’t have cable TV and instead took advantage of my Amazon Prime membership and DVDs my girls and I had received as gifts.

Entertainment was kept modest as well. I decided to have my fun on a budget! One of our go to entertainment escapes was fishing at my Dad’s pond which was 100% free for my daughters and me.

After all of my budget slashing I was living on less than $1,500 per month. (Babysitting was my largest expense.)

I Side Hustled

Next, and probably more importantly, I started my side hustles, which later became my full-time job.

I decided that I was going to make money online by writing for other people. I started out slow only charging $20 per article. Little by little I started amassing clients until I was fully booked.

I saved every single penny of this extra money. It all went straight into my emergency fund.

I Saved Bonuses and Income Tax Refunds

During the year that I was working hard to save I ended up getting a modest income tax refund (around $900) which went directly to my emergency fund.

On top of that I was working as insurance agent and after landing my boss a very good account I got a $2,500 bonus. Once again, every single dime of that money went into savings.

Each year, I would also diligently track when to expect my tax refund and plan to catch-up and save that money as well.

I Hit the $10,000 Mark With Fierce Determination

After I had my emergency fund built up to a decent amount I ended up quitting the day jobs in order to start my own freelance business online. That was in October of 2013. Just about one year later.

Even though I was making a low income at the time I started saving, I was determined to reach my goal. And I think that’s the key – you can accomplish anything in this world if you’re determined and willing to put in the work.

You might also enjoy reading my 10 low-income money tips where I share other experiences from my life.

What’s a goal you’ve recently accomplished?

Alexa Mason
Alexa Mason

Alexa Mason is a freelance writer and wanna be internet entrepreneur. She is also a newly single mom to two beautiful little girls. She chronicles her journey as a single mom trying to make it big at www.singlemomsincome.com.

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors’. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone’s responsibility to ensure all posts and/or questions are answered.

Subscribe
Login
Notify of

0 Comments
Inline Feedbacks
View all comments

Primary Sidebar

  • Facebook
  • Instagram
  • Pinterest
  • RSS
  • Twitter
  • YouTube

Editor’s Picks

  • 8 best cryptocurrency exchanges ranked

    8 Best Cryptocurrency Exchanges Ranked For 2023

  • crypto savings accounts

    6 Best Crypto Savings Accounts For 2023

  • Cryptocurrency Bonus Offers

    10 Best Crypto Promotional And Bonus Offers

  • best crypto wallets

    Best Crypto Wallets For 2023 (Software And Hardware Options)

  • Best Portfolio Trackers For Cryptocurrency And Stocks

    6 Best Portfolio Trackers For Cryptocurrency And Stocks

  • best tax software for crypto and NFT traders

    Best Tax Software For Crypto And NFT Traders In 2023

Popular Posts

  • proof of work vs. proof of stake vs. proof of history

    Proof Of Work vs. Proof Of Stake vs. Proof Of History

  • Why I Bought An NFT

    Why I Bought An NFT [And 5 Reasons You Should Too]

  • My Dogecoin Experiment: What I Learned From Investing $2,000 In DOGE

  • common crypto and nft scams

    Most Common Crypto And NFT Scams (And How To Avoid Them)

  • Bookkeeping and Accounting for Crypto and NFTs

    Bookkeeping And Accounting For Crypto And NFTs

  • what is a 51% attack

    What Is A 51% Attack? (And How Is That Game Over For Crypto?)

  • what is staking crypto

    What Is Staking And How Can You Make Money With Your Crypto?

  • what are veefriends

    What Are VeeFriends And Are They Worth It?

  • how to file a complaint against crypto exchanges

    How To File A Complaint Against A Crypto Exchange [Crypto Regulators]

Footer

Pages

  • Best Cryptocurrency Wallets
  • Best Cryptocurrency Exchanges

Categories

  • Cryptocurrency
  • DeFi
  • NFT
  • Personal Finance

About

  • About The Cult Of Money
  • Contact
  • How We Make Money
  • Advertise With Us
  • Facebook
  • Instagram
  • Pinterest
  • RSS
  • Twitter

Copyright © 2023 | Cult of Money | Privacy Policy | Terms of Service

wpDiscuz