2. Create a Budget

We understand that building an emergency fund can seem daunting, especially if you’re living paycheck to paycheck. However, the key is to start small and remain consistent. Even saving a few dollars each week can add up over time. Track your monthly income and expenses to understand your cash flow better. Identify areas where you can cut back on non-essential spending to contribute more toward your emergency fund. Nerd Wallet provides a free 50-30-20 budgeting calculator to help you get started. The idea is to put 50% of your income towards things you need, 30% towards things you want, and 20% towards savings and debt repayment. 

4. Automate Savings

Set up automatic transfers that pull money from your checking account to a dedicated savings account every month. Doing this can help you stay consistent without having to think about manually setting the money aside. Our Digital Banking app makes it easy to manage your finances. You can even utilize the “Savings Goals” feature by creating a financial savings goal and setting up a category, amount, and target completion date to save for.

5. Stay Committed

According to Bankrate’s annual emergency savings report, 1 in 3 Americans had to use some of their emergency savings in the past year. In that same survey, 62% of people stated that they feel behind where they should be in saving for emergencies.

Building an emergency fund takes time and discipline. Stay committed to your goal, and remember that even small contributions add up over time. If an emergency arises, you’ll be glad to have the funds there, ready to help you through the difficult time.