How do I start an emergency fund on a small income?
Start with a small, automatic amount and build towards three to six months of essential expenses.
An emergency fund covers unexpected costs, such as medical bills, car repairs or job loss, so you do not have to rely on credit. You can start with very small amounts.
Begin with a mini goal, such as one week or one month of essential expenses.
Start small
Set up an automatic transfer on payday, even a small amount. Consistency matters more than size.
Build up
Aim for three to six months of essential expenses over time. Add windfalls like tax refunds or bonuses.
Where to keep it
Use a separate savings account that is easy to access but not linked to your everyday spending. Only use it for genuine emergencies and refill it afterwards.
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