9 Tips for Building Your Emergency Fund Fast
February 17, 2026
If you have trouble imagining how you would pay for a surprise car repair or medical expense, you’re not alone. The majority of Americans live paycheck to paycheck, and recent surveys show that about one-third of Americans have no emergency fund at all, while the median emergency savings is just $500.
Being able to handle an unexpected financial event is why building an emergency fund is a cornerstone of financial wellness, and is the most important first step to take on your journey towards it. In addition to the peace of mind that comes from knowing you can manage an unexpected expense without jeopardizing your financial stability, having an emergency fund allows you to avoid accumulating expensive interest charges on debt. Here are nine tips to get started and build your emergency fund quickly.
- Start small and automate your savings. The most important step is to make the commitment to start, even if you are only depositing $20 to open a dedicated savings account for your emergency fund. Automate a regular transfer from your checking account to this account for the day after payday. Online banks and high-yield savings accounts offer the best interest rates and provide quick access if necessary, while keeping your emergency fund separate from the rest of your money so you aren’t tempted to spend it.
- Limit how often you eat out and/or pick up takeout. Going out to restaurants and bars is fun and takeout is convenient, but can add up quickly. The best way to reduce spending here is to simply limit the number of times you go out during the month. Bring lunch from home, and cook up a big batch of something on the weekend that you can freeze and have available on nights when you’re too busy to cook. Instead of dropping big bucks for overpriced cocktails, invite friends over for a glass of wine, or have a group wine tasting where everyone brings a bottle to share. Your savings will add up quickly, and you may find you are eating more healthily, too.
- That goes for coffee shops, too. Limiting how often you go out for coffee during the work week can easily save you $5 a day, which over the course of a month could be adding $100 to your savings. Treat yourself to that mocha latte during the weekend when you have time to savor it.
- Review and manage your subscriptions. Those $4.99 and $7.99 monthly subscriptions sound cheap but when you have a lot of them, it’s costing you more than you may realize. Use a subscription management app or your bank’s spending tracker to identify and cancel unused or duplicate subscriptions. Cancel the gym membership that you don’t use very often, and go for a walk or work out at home instead. Consider cutting the cord on cable and using a streaming service, or even going old school with an antenna for local broadcast TV channels.
- Negotiate to reduce your bills. Most cable, internet, and cell phone carriers are willing to negotiate their rates to keep you as a customer, and you may be eligible for a promotional package. Many utility companies now offer budget billing or hardship programs if you ask. Rent can sometimes be negotiated, especially if demand in your market is down or you’re a long-term tenant. You have nothing to lose by asking.
- Get cash from your closet. Sell your gently used clothing, handbags, and accessories on websites like thredUP and Poshmark. You might also want to try shopping for bargains at thrift stores to see if you can find what you’re looking for before buying new off the rack.
- Find out if you have unclaimed money. The National Association of Unclaimed Property Administrators (NAUPA) maintains a free website at unclaimed.org that will link you to the appropriate department in your state that holds funds from things like abandoned safety deposit boxes or uncashed checks. You should search in every state where you have lived or worked. This resource is still current and widely used.
- Go meatless once a week. Eating vegetarian or even vegan one day a week can save money on your monthly grocery bill. You may find you feel better and might lose some weight to boot.
- Consider lower-cost personal care options. Trade in your fancy hair stylist for a barber or a beauty school, where supervised students offer haircuts at a fraction of the price. You can save $25 to $50 a visit and get essentially the same haircut, without the shampoo and blowdry.
Implementing even a couple of these tips can help build up your emergency fund more quickly. You might also find that you enjoy the extra savings that living a more frugal lifestyle offers, and use the money you save to fund other activities you enjoy, or put it towards other savings goals.
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