You’ve been putting off your emergency fund, but it’s more important now than ever. You can get started saving today, even with just $1.
No emergency fund? You aren’t alone. A recent Bankrate survey found that only 47% of Americans would be able to cover a $1,000 emergency expense with savings.
Whether you lose your job or a major home repair need pops up, having an emergency fund to fall back on is absolutely essential. Even if you think you don’t have the means to start putting money away for a rainy day, odds are you can. The key, for many, is starting small.
Here’s a rundown on how you can make it happen in 2026.
How much do you need, exactly?
The general rule of thumb with emergency funds is to have three to six months of your net income set aside for an emergency. Ideally, you’d set aside three months if you have a dual-income household, and six months if you have a single-income household. (The idea is that if you have a dual-income household, the chances of both of you losing your job are slim. The goal is that you have enough set aside in your emergency fund to make you feel like you have a cushion that will last you until you can get “back on your feet.”) Yes, that’s a lot of cash, but the goal isn’t to save it as quickly as possible — the goal is consistency, and saving wherever and whenever possible.
“Our favorite way to think about creative savings is really breaking down your goal into tiny pieces,” says Lauren Pearson, founding partner and Managing Director at Somerset Advisory, a wealth management firm in Alabama specializing in family financial planning, and co-founder of The Wealth Edit, an online, membership-based community educating women on how to develop modern skills for personal finances.
“So, if you would like to save $6,000 in, say, four months, that means you would have about 120 days to save. You would divide your goal by the number of days, which in this case is $50 per day.” And if that sounds like too much, then decide what’s doable for you. At even $2 per day, you’re looking at more than $600 saved by the end of the year. Go, you!
5 Ways To Save For Your Emergency Fund This Year
Create a Budget
This may seem obvious, but statistically, the majority of people do not have a pre-planned budget, says Brian Hamilton, co-founder of OnePay.
Create a realistic budget that will allow you to save, while still enjoying the money you work so hard for. Take a look at some of your higher spending categories and see if you can cut back for a few months. Specifically, look at dining out, streaming services, and other non-essentials to start.
Pearson says a good way to get started is to cut out any “low-hanging fruit” expenses — think of subscriptions you don’t use, gym or athletic memberships you rarely enjoy with the pandemic, clothing, and so on.
Automate Your Savings
You’ve heard this one before, right? That’s because it’s proven to be the best way to get yourself to save, even when it feels like nothing else works. When you’re setting aside money before you ever have the chance to spend it, it’s truly out of sight, out of mind. Set an automatic transfer from your checking account into your savings account, or find an app you love that will do this for you automatically, so you’re always putting your savings goals first.
Look To High-Yield Savings Accounts
The variance between APY (annual percentage yield) offered from bank to bank can differ dramatically, and even half a percentage point can make a difference in your balance at the end of the year. No, high-yield savings accounts don’t pay as much as they used to, but you should still look to them as a good way to save an extra few dollars. When you’re saving and earning interest that goes back into your account, the amount can compound quickly with a higher rate. This may be a good time to shop around for a higher rate.
Don’t pay high interest on your credit card
Do you pay your credit card off at the end of every month? Ideally, that’s the goal, but things happen and sometimes we end up carrying a balance. If you are paying 20% or 25%, it’s time to shop around for a new card, Hamilton says. If you love your card, call to ask if you can get the APR lowered, but if that doesn’t work, it’s time to switch to a different card.
“The best thing we can do today is continue to save when possible, try not to rack up debt with high-interest credit cards, and consider consolidating existing debt at a lower interest rate,” Hamilton says.
The Bottom Line
Having an emergency fund is one of the building blocks of financial security and freedom. Even a few dollars a day can add up quickly to a cushion you can fall back on when there’s a bump in the road. You’ve got this!
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