Why You Need an Emergency Fund (Like, Yesterday)

Life doesn’t give warnings. One minute everything’s fine, and the next—boom—your car won’t start, your washing machine floods the laundry room, or you have to go out of town at the last minute. Or maybe you just landed a new job (congrats!) but you don’t get your first paycheck for two weeks. Emergencies don’t wait, and neither should your emergency fund. Sure, credit cards are convenient. But relying on them for unexpected expenses can get expensive fast—especially if you're already carrying a balance. That interest adds up, and before you know it, you’re digging yourself into a deeper financial hole. Having an emergency fund means you don’t have to swipe your way through a crisis. It gives you breathing room and peace of mind. That’s why financial experts like Dave Ramsey suggest starting with a $1,000 “starter” emergency fund. It’s your first line of defense when life throws you a curveball.

How to Build Your Starter Emergency Fund

Don’t have $1,000 saved yet? That’s okay. Start small. Even $10 set aside from your next paycheck is a step in the right direction. Here are some ideas to get going:

• Set aside a little from every paycheck until you hit your goal

• Sell things you no longer need (hello, closet cleanout!)

• Host a yard sale

• Pick up a side hustle

  
  

Once you’ve got your $1,000 saved, keep it somewhere easily accessible—but not too accessible (you don’t want to be tempted!). A savings account works great, or even a secure spot at home if that’s your preference. Just remember: this money is for emergencies only, not concert tickets or late-night pizza runs.

What Comes Next

After you've hit your $1,000 goal, you can shift your focus to paying down debt—credit cards, car loans, whatever’s weighing on your budget. And once your debt is under control, it’s time to level up your emergency fund. Aim for 3–6 months’ worth of living expenses (not income—just the essentials: housing, food, utilities, transportation). This bigger safety net is what really protects you from major setbacks like job loss or extended illness.

Take the First Step Today

If you don’t have an emergency fund yet, today’s a great day to start. Put aside that first $10 and make a plan to grow it. It might take a little time, but every step gets you closer. And once you have it you’ll sleep better knowing you’re ready for whatever life throws your way.