Freedom With Markus

Category: Saving

  • How I’m Building My Emergency Fund Before Investing More

    How I’m Building My Emergency Fund Before Investing More

    I’m currently building my emergency fund before investing more, because I want a stronger financial foundation before taking bigger risks with my money. Investing is still important to me, but I’m learning that having a safety net first can make the whole journey feel calmer and more sustainable.

    Why I’m Pausing Before Investing More

    I want to invest more and move faster toward financial freedom, but I’m learning that investing without a safety net can create unnecessary stress.

    I’m focusing more on building an emergency fund right now, so if something goes wrong, I have something to rely on.

    What an Emergency Fund Actually Is

    An emergency fund is money set aside for unexpected expenses, like car repairs, medical bills, job loss, or anything that could otherwise push you into debt.

    It’s a way to stay in control and feel safe. Even in the midst of a storm.

    Why I Think It Matters Before Investing More

    If you just start immediately investing and ignoring your emergency fund, you can end up in unnecessary stress. For example your investment might have gone temporarily down, and then an emergency comes and you have to sell everything with a loss.

    But if you had an emergency fund, you could have waited with selling your investment until it had risen again so you could earn profit instead of losing.

    Sometimes it can also be hard to access your money if you have invested it. For example, in a fund, it usually takes between 2-6 business days until you receive the money.

    And that’s not practical if you have an emergency that needs to be fixed today.

    My Current Emergency Fund Goal

    My first goal is not to build a perfect emergency fund overnight. My first goal is to create a small safety net that makes me feel more stable.

    I have split my current emergency fund goal in 3 parts:

    Level 1: A small starter emergency fund:

    • 10 000 NOK

    Level 2: One month of expenses

    • 20 000 NOK

    Level 3: Three to six months of expenses

    • 100 000 NOK

    This is where I want to be, especially before i start investing more aggressively.

    How I’m Finding Money to Build It

    Right now, what i do, is to make saving automatic. If you start small, and make it automatic, it’s much easier to stick to.

    I have a setting in my bank for my debit card, which is that every time i use my card, 10% of the money i spend goes to another account, and from that account 450 NOK is spent investing in a chosen fund.

    For example, if I buy groceries for 250 NOK, 25 NOK is sent from my debit card, to the separate account.

    This way, I’m building my emergency fund, and i invest a small part every month to a fund at the same time. And the best part is that it happens without me noticing it happen.

    Where I’m Keeping My Emergency Fund

    I’m keeping my emergency fund in a separate account from the account I use in everyday life.

    I want my emergency fund to be accessible, but not so accessible that I accidentally spend it.

    I recommend to have it in a separate account that has high interest-rate, in that way you also earn a bit from the interests over time.

    What Counts as a Real Emergency?

    Don’t mix emergency with ”something I really want”.

    It’s important to be disciplined when it comes to the emergency fund. Otherwise you will just use it unnecessarily, and the fund will never grow to be a real source of protection and safety.

    Examples on emergencies:

    • Urgent car repair
    • Job loss
    • Medical or family emergency
    • Essential home repair

    Examples on things that are not an emergency:

    • New phone upgrade
    • Random shopping
    • Vacation
    • Investing opportunity

    How This Helps Me Stay Calm With Investing

    With an emergency fund, I believe I’ll be able to invest with more patience. If the market goes down or life gets expensive, I won’t feel forced to sell.

    It actually helps you with your investing, because if you have an emergency fund, you can take more risk. Taking more risk can potentially lead to higher returns, but I want to make sure I have a safety net first.

    My Simple Plan Going Forward

    My plan is simple: build my emergency fund step by step, keep it separate, and only invest more aggressively once I feel financially stable enough.

    I’m investing slowly right now with very little risk, at the same time as I’m building my emergency fund. When my fund is big enough i will start investing more heavily and more risky.

    Conclusion: Safety First, Then Growth

    I still want to invest and grow my money, but I’m realizing that financial freedom is not only about chasing returns. It’s also about building peace of mind.

    If you’re also trying to save more money, you might like my post about how to start saving money when you’re broke.

    I also wrote about beginner investing and what I’m learning before I start, which connects well with why I’m building a safety net first.

    You can also read more about my journey to financial freedom and why I started this blog in the first place.

    Vanguard also explains that an emergency fund can help you handle unexpected expenses without relying on debt or selling investments at the wrong time.

    What about you? Are you building an emergency fund, investing already, or trying to do both at the same time? Let me know in the comments — I’d love to hear where you are in your journey.

  • How to Start Saving Money When You’re Broke

    How to Start Saving Money When You’re Broke

    When you’re broke, saving money can feel almost pointless. If there’s barely anything left at the end of the month, the idea of putting money aside can feel unrealistic.

    But I’m starting to realize that waiting until life feels easier is probably part of the problem.

    Why saving feels hard when you’re broke

    When you have almost nothing left at the end of the month, it’s easy to think that saving is pointless.

    That is a trap I’ve fallen into many times.

    If you’re already stressed about bills, debt, or unexpected expenses, saving money can feel like something you’ll “do later” when life is more stable.

    But for many people, that later never really comes unless they decide to start small anyway.

    Start small

    Example: Start with $5 or $10

    If saving feels impossible, start with an amount so small that it almost feels too easy. Maybe that is $5, $10, or $20 per month. The amount is not the most important part in the beginning. The most important part is proving to yourself that you can start.

    The point of saving when you’re broke is not to build a huge savings account in the first few months. The point is to build the habit.

    It’s about creating a little more stability and security every month, even if the amount is small.

    In the beginning, the amount may feel insignificant. But small amounts add up over time, and more importantly, they change how you think and behave with money.

    Know where your money is going

    A lot of people focus only on increasing the flow of money while ignoring the holes that leak it.

    I’ve had that mindset for years, and it’s something I’m now trying to change.

    It doesn’t matter how much money you make if it keeps disappearing through debt, unexpected expenses, subscriptions you forgot about, takeaway food, small daily purchases, and other leaks.

    Tracking your spending is important because it makes you more conscious of where your money actually goes.

    Cut one or two things first

    You don’t need to cut every unnecessary expense immediately.

    In fact, it’s probably better to start with one or two things first.

    The goal is not to remove all enjoyment from life. The goal is to gain more control and put more money toward what actually matters to you.

    Give saving a purpose

    It also helps to know why you’re saving.

    You’re not just saving to see more money sitting in your bank account. You’re saving to create safety, reduce stress, and avoid having to rely on debt when life happens.

    Saving can also give you opportunities. If a real opportunity shows up and you have nothing set aside, you may not be able to take it.

    Focus on stability, not perfection

    This is not about becoming financially free overnight.

    It’s about creating a little more control, and even a small buffer can change how life feels.

    The best day to start was yesterday; the next best time is now.

    Start now, even if it’s just a small amount. Over time, it can make a huge difference in your peace of mind and quality of life.

    Conclusion

    I’m still early in this process, but I’m starting to see that saving money is not just about numbers.

    It’s about creating a little more safety, a little more peace of mind, and a little more control.

    And when you feel broke, that can be a powerful place to start.

    Action step:
    This week, choose one small amount you can save and one expense you can reduce. It does not have to be perfect. It just has to be a start.

    If you want to read more about what made me take saving money more seriously, you can read this next:
    My Biggest Financial Mistake So Far

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    What about you?
    What is one small financial habit you’re trying to improve right now? Let me know in the comments!