Just Depleted Your Emergency Fund? Here's How to Regroup

An emergency fund is something everyone should have at all times. Without money in a savings account, you could end up forced into expensive debt when unplanned bills, like home or car repairs, arise. Similarly, without an emergency fund, you might rack up a ton of credit card charges in a situation where you've lost your job but still have all of your bills to pay.

But since the whole purpose of having an emergency fund is to be able to tap your cash reserves in a pinch, it's conceivable that you might reach the point where that fund is depleted. This holds true even if your emergency fund is pretty large.

Recent data from New York Life found that among Americans who have an emergency fund, the average amount saved is around $16,776. But even a sum like that could run out on you pretty easily if you end up needing a costly home repair, like having to replace your entire heating or air conditioning system.

If you recently depleted your emergency fund, you may be feeling angry, frustrated, and downright anxious. Here are some steps you can take to rebuild your savings and regain that safety net.

1. Turn to the gig economy

If you're currently working full-time, the idea of squeezing a second job in may seem undesirable. And while you certainly don't have to do that forever, you may want to do it now so you can give your savings a relatively quick boost.

The good news is that you really do have the option to find a job that works for your schedule. That could mean doing an hour of data entry before bed or driving passengers around town during those weekends when you're home with no other obligations.

Of course, the more you're willing to work at a second job, the sooner you might manage to build your emergency fund back up. That's something you can remind yourself if you start to get burned out. And remember, if that happens, you can always cut back temporarily until you feel better equipped to handle more working hours.

2. Reduce a big expense

If you had $15,000 in emergency savings and now have none, canceling Netflix and skipping your once-a-week Dunkin' coffee run probably isn't going to make a huge dent in your progress. So rather than focus on those things and deny yourself small luxuries that make your days better, think big.

Maybe you live in a city where having a car is a nice thing, but it's not an absolute necessity. Unloading it could save you hundreds of dollars each month.

3. Bank your windfalls

You may end up coming into extra money this year outside of your regular paycheck or side gig earnings. The IRS might send you a nice refund check this April, for example. Or, you might get a generous dividend payment in your brokerage account that you can cash out and put into the bank as needed.

Pay attention to when extra money comes in, and resist the urge to spend it. Even smaller contributions can go a long way toward rebuilding your emergency fund.

It can be beyond disappointing to see the savings you've built get whittled down to nothing. But try to remind yourself that's what your savings were for, and that the silver lining is that you covered your surprise expense without debt. And if you follow these steps, you may find that you're able to replenish that emergency fund sooner than expected.