Building an emergency fund doesn't typically happen by accident. Most people don’t just wake up one day with six months of expenses just sitting in their bank account - that would be nice though! Most standard finance advice recommends three to six months of expenses for an emergency fund. How you define expenses is up to you. Some people go with their bare bones expenses -enough to keep a roof over their head, gas in their car, and food in the fridge. Other people go with the amount it would take to replace their regular income for those months.
Saving that sum of money can seem daunting, especially if you aren’t a great saver or don’t feel like you earn enough money to save. However, only 47% of Americans are able to cover a $1000 emergency without using debt, according to a survey by Bankrate in 2026. Building an emergency fund protects you from needing to borrow money when life happens. At some point, your car will break down, you will have an emergency vet bill, or something else unexpected will happen. Planning for these unexpected events can help you feel financially stable and secure, even when the markets feel otherwise.
If you’re looking to build up your emergency fund, here are some helpful tips to get you going:
Keep your emergency fund in a different bank
While having your emergency fund in your regular bank sounds convenient, it’s a recipe for failure. Seeing those funds every time you log in to your app, can easily turn into daydreaming about all the other ways you could use that money. Swapping banks for this particular account can act as an additional barrier, dissuading you from touching this money unless it’s for a true emergency.
Automate your savings
Set up an automatic transfer through your everyday bank that falls on payday. Start with a small amount at first, a number that you will barely notice if it's even gone. Each month, challenge yourself to increase the amount. Slowly increasing the amount is a practical way to ease yourself into the habit of saving - especially if you are used to living paycheck to paycheck.
Compound your money
High-yield savings accounts offer interest rates that are significantly higher than a regular savings account. Rates in early 2026 are hovering between 3-4%, which may not sound like much but those small amounts can add up. If you keep just $1,000 in the account, over the course of a year, you could add $30-$40 to that balance without lifting a finger.
Collect your cash
Make a rule for yourself that whenever you receive cash, it goes into your emergency fund. Whether that’s a $20 bill for your birthday, a $6.33 refund from Target, or a quarter you found on the sidewalk, that money goes straight into your emergency fund savings. This method is especially helpful if you enjoy gamifying tasks.
Start a side hustle
Let’s be honest, if you are living paycheck to paycheck, it can be hard to feel safe saving even a few dollars. It doesn’t have to be an entire business model with a brand and logo, you can simply start by selling items you don’t use anymore. Starting a side hustle can provide you with some breathing room to start building your financial safety net and help it grow quickly.