About a year ago, we were at a financial low point. We had almost nothing in our checking account and our credit card was maxed out.

In March 2019, I acknowledged this was an issue I needed to figure out. I realized we were spending about $400 more each month than we were making.

We moved to LA about 6 months prior to this realization, and in retrospect, we were not financially prepared. We had a couple thousand in our savings and no credit card debt at that point. Not in terrible shape, but we should have had at least a few months of living expenses.

In March 2019, I started reading every personal finance book I could get from the public library. We were about to get a fairly large tax refund, and I wanted to make sure we used it responsibly. We paid off our credit card completely, paid back my in-laws for an expensive car repair they paid for in January 2019, and put the rest in a savings account.

Now we have one month (one and a half if we really cut back) of living expenses in our savings account. It’s not ideal, but it’s something we regularly contribute to. And even that amount has given me some peace of mind during this time.

You don’t want to be in the position of needing to work so desperately that you endanger your own or other’s health.

But it’s hard. When you are barely making enough each month, it’s hard to imagine building up an emergency fund (ideally 6-9 months of living expenses). This should be money that is easily accessible without fees, usually in a savings account. Here are some ways you can set aside a lump of money to cover you when the inevitable emergency happens.

1. Save, don’t spend windfalls. A windfall is a one time lump sum of money. It could be a tax refund, a high paying gig, or prize money from a competition. Use this money to start or grow your emergency fund. If you feel you must splurge on something, do something small.

2. Budget. Yeah, not groundbreaking. Figure out exactly how much you’re making, how much you’re spending, and what you’re spending it on. If you have variable income, budget based on the low end, not the high end. Nobody has “extra” money to save. Money for your savings account needs to be budgeted in as a monthly expense.

3. Lower your expenses. Is there anything you can cut back on or find a less expensive way to do? As you develop your budget, continue to re-evaluate and ask yourself this question. Let no expense pass your scrutiny.

We basically stopped eating out completely for the rest of 2019. Once I understood how much we spend per day on food for our family (about $25), I realized that eating out once was more than an entire day’s expense for food, and it was impossible to justify eating out. I often wanted to eat out when I was really tired and not wanting to cook, so we started keeping supplies for a few really simple meals at home.

Another thing I did since we are a family of four is apply to government programs for help. I applied to WIC (Women, infant, children), which gives you credits to buy specific items at the grocery store if you are pregnant or nursing, and for kids under the age of 5. The credits are for things like milk, eggs, cheese, produce, and baby food if you have a little baby (6 months-one year), and I estimate it is worth about $200/month, more if you are pregnant or nursing. (Continued on next page)

I also applied to Calfresh (food stamps). It is a pain to fill out all the paperwork, but when I thought of being paid for that time, it was definitely worth it. We got $130/month when we started and $480/month at the end of last year. You can buy any food items with food stamps- no alcohol, and no “home” items. You must recertify (report income, changes) every six months.

We’re no longer on Calfresh, but it really helped us during that time. We had to humble ourselves quite a bit to ask for help.

4. Increase your income. Before we moved to LA, I was never very aggressive about income. I thought I just sort of made what I made and that was it. Now I am in the habit of checking job postings regularly. I am always on the lookout for something interesting or better.

First, if you have proven yourself a valuable employee over a year or so, ask for a raise. If you are aware of what the rate of what your job typically pays, that gives you a good idea of how much you can realistically ask for. Then, consider adding a little onto that so your employer feels that they can meet you in the middle, and you get what you want. Be prepared to explain why you deserve a raise (you have been a consistent and reliable employee, your students have stuck with you for a year or longer, etc.) and what value you are adding to their business.

Add a part time job. I have three jobs now, and we have somehow managed to work the schedules out. There are jobs for all times of the day. Some jobs might only require one or two shifts a week, like my summer job at the Hollywood Bowl. Even one shift a week can add up to a few hundred dollars a month.

Keep an eye out for jobs, and keep on applying. Don’t worry if you get it or not. Learning to be a good employee is a skill in itself. If you end up getting a job and you realize it doesn’t work for your life, you can always decline.

Keep an open mind about doing different jobs, and try to have the attitude that “I could do that,” rather than dismissing a job before applying.

Do you have an emergency fund? How do you ensure you are saving money?