You may know the importance of an emergency fund to help you weather life’s challenges. From job loss to unexpected expenses, an emergency fund is essential when you face financial hardships. However, creating an emergency find is not an easy task. According to Bankrate, 27% of Americans have no emergency savings at all, and 59% are uncomfortable with their level of emergency savings. Additionally, only 39% of Americans have a separate emergency savings account. If you have a hard time saving, you’re not alone, but you can change your behavior to ensure your future financial health. Here are seven ways to build your emergency fund.
1. Automate It
If you have a hard time saving, try automating it. When you receive your paycheck, a certain amount goes directly to your savings account. Many people refer to this as paying yourself first. This way, you ensure you are contributing to your savings and you won’t be tempted to spend the money in your checking account. Automating your savings makes it a non-negotiable like paying a bill or your mortgage. The amount you automate doesn’t have to be large. Just starting is what matters most.
2. Hide Your Savings Account
Instead of being tempted to take money out of your savings account, you can hide the account. If you can’t see it on your bank app, chances are you’ll be less likely to move money out of it. Most banking apps allow you to hide your account. For example, on the Bank of America app you can go to your account preferences page, click the account you want to hide, then click visibility. This can reduce your temptation to just transfer money over when you want to spend it.
3. Focus on Needs Not Wants
One good strategy to help you with savings is to focus solely on your needs. Oftentimes, we wind up overspending if we aren’t only considering what we need to get by. These things include food, housing, transportation, and healthcare. If you can’t resist impulse purchases, leave your cards at home and only use cash. This can help you reduce the amount of money you spend and you’ll be less tempted to spring for something unnecessary.
4. Set a Tangible Goal
The best way to stay disciplined when building your emergency fund is to set a goal. Put a number to how much you want to save and track your progress. Make sure to create a realistic timeline to reach your goal. For instance, if you want to save up to six months of expenses, you will likely need at least a year to fully fund your emergency savings. Plan for setbacks (they will happen) and be adaptable. This will help you reach your goals.
Celebrate when you reach milestones. For example, you might want to celebrate when you save your first $1,000 or when you hit your halfway point to your long-term goal. You might plan a little dinner out or grab yourself a nice bottle of wine to celebrate your success. Remember not to spend a ton of money celebrating, that negates the purpose altogether.
5. Utilize Budgeting Apps
Utilizing budgeting apps like You Need a Budget (YNAB) can help you plan financial decisions and work toward saving goals. Budgeting apps can help you determine how much you can comfortably afford to save each month while still paying down debt and expenses. These tools will also give a snapshot of all of your spending and help you set limits. You can then get alerts when you are close to your spending limits on certain categories.
Check out this list of the best budgeting apps available in 2025. There’s sure to be something that caters to your needs.
6. Set Aside Windfalls
If you receive a windfall of money no matter how big or small, set that money aside for your emergency fund. Anything from tax refunds, inheritances, bonuses, or investment gains should be added to your savings. If you want to use a portion of it to have fun, you can. But you should plan to put the majority of it aside for savings.
7. Make It Fun
Creating an emergency fund doesn’t have to be a dreaded task. You can gamify your savings or try a savings challenge with friends or family members. This can create accountability for you as well. There are several challenges to try like no-spend challenges, the 100 envelope challenge, and the 52-week money challenge.
Building an Emergency Fund
If you are working on building your savings, you’ve taken the first step toward securing an emergency fund. Saving money can be hard and it takes discipline. Try not to get discouraged by what experts say about how much you save. The important part is that you are trying to improve your financial situation. With determination, you can and will reach your goals.
Do you have an emergency fund? How do you put money toward savings?
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Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.
