Start with a $1,000 starter emergency fund

Forget the 3-6 month goal initially. Focus entirely on saving your first $1,000. This covers most common emergencies — a car repair, a medical copay, a broken appliance — and breaks the cycle of going into debt for unexpected expenses.

Why It Works

A smaller target is psychologically achievable. Once you hit $1,000, the momentum and confidence carry you toward larger goals. It also provides immediate protection against the most common financial emergencies.

Tips

• Put it in a separate savings account so you are not tempted to spend it
• Even $25/week gets you to $1,000 in 10 months
• Once you reach $1,000, then start working toward one full month of expenses