An emergency fund is designed to give you immediate access to cash when unexpected expenses arise, helping you avoid reliance on credit cards, loans, or having to disrupt your long-term financial goals. Despite its critical role in financial security, an emergency fund is one of the most commonly overlooked aspects of a financial plan.

Now, let’s be real, saving for an emergency fund can feel like a huge, impossible task. All the pressure of daily expenses and life’s demands might already be stretching your budget pretty thin. The idea of setting aside money “just in case” can seem a bit out of reach. And I get it, who wants to leave hard-earned cash sitting in an account, untouched?

But having this cushion in place can change everything. It’s not about expecting disaster, but knowing you’re prepared for anything life throws your way.

In this article, we’ll break down some of the most common reasons you might be putting off building your emergency fund and tackle the mental blocks that can make it feel like an intimidating goal. Together, we’ll work through strategies that’ll help you build that financial safety net—and give yourself some well-deserved peace of mind.

First, I’ll quickly go through some general rules of thumb for emergency funds:

• The amount of money you need in an emergency fund depends on your individual situation, but a general rule is to save enough to cover three to six months’ worth of essential expenses. For those with a more stable income, such as a salaried position or a dual-income household, three months of expenses may be sufficient. If you’re self-employed, have several dependents, or face health concerns, it’s advisable to save more, typically nine to twelve months’ worth of expenses.
• To calculate how much you’ll need, add up your monthly essential expenses—housing, utilities, groceries, transportation, healthcare, and minimum debt payments—and multiply by the number of months you wish to cover. For example, if your monthly essentials total $3,000 and you’re aiming for six months, your emergency fund goal would be $18,000.

Common Excuses to Not Build an Emergency Fund

1. “I Don’t Have Enough Money to Save.”

If you feel that saving is only for people with high incomes, you’re definitely not alone. It’s a common belief that without extra cash, building an emergency fund just isn’t possible. But saving isn’t about making big deposits all at once—it’s about consistency, no matter how small the amount. Even putting aside $10–$20 each month adds up. It might seem minor now, but over time, these small steps build into a valuable safety net. Remember, every little bit you save is one step closer to peace of mind.

2. “I Have to Pay off my Debt First”

Debt can feel like a heavy burden, so it’s only natural to feel like you need to pay off everything before even thinking about saving. But emergencies don’t wait for us to be debt-free. Having a small emergency fund, even a few hundred dollars, gives you a fallback without adding to your debt load if something unexpected happens. It might mean taking things slow, balancing debt repayment with modest savings, but it’s about creating a layer of protection that keeps you from needing more credit.

3. “I Don’t Want to Sacrifice My Lifestyle.”

It’s a misconception that saving means sacrificing the things you love, whether it’s eating out or small indulgences. Saving doesn’t have to be about major lifestyle changes; even small adjustments can make a difference. If you set aside even $25-$50 when you get paid, chances are you’re not going feel deprived or like you’re losing the things that make life enjoyable—in fact you probably won’t even notice it’s gone.

4. “I Don’t Earn Enough Interest on Savings.”

While it’s true that emergency funds in savings accounts won’t earn as much as some investments, the purpose of an emergency fund is accessibility and stability, not high returns. It’s there to give you immediate cash when you need it, not to grow your wealth. Think of it as a tool that keeps you prepared and worry-free, so you don’t need to reach for credit or dip into your long-term investments in an emergency.

5. “I Have Other Financial Goals That Are More Important.”

It’s easy to prioritize immediate goals like a vacation, a big purchase, or even other investments over an emergency fund. But an emergency fund actually protects all your goals. If an unexpected expense arises and you don’t have savings, you may end up tapping into funds meant for those other goals. An emergency fund ensures your other goals stay safe and uninterrupted, no matter what life throws at you.

6. “I Can Rely on Credit if I Have an Emergency.”

Relying on credit as an emergency plan might seem practical, but it often leads to more debt. High-interest rates can make it hard to pay off the balance, especially if it’s a large expense. An emergency fund is a debt-free option that gives you the freedom to handle surprises without the worry of mounting interest, which helps you stay financially steady in the long run.

Let’s be real—these are all just excuses for not doing the thing you know you should be doing. Saving for an emergency fund isn’t glamorous, and it doesn’t come with the thrill of instant gratification.

Think about the last time your car broke down or your pet got sick, and you didn’t have cash on hand to cover it. Were you stressed? What did you have to sacrifice or give up to handle that emergency? That’s where the true gratification of an emergency fund comes in.

Nearly all my clients list financial security as one of their top goals, yet many still hesitate at the thought of building an emergency fund. But having cash on hand is the way to create that security. There are no shortcuts.

If you know this is true but are struggling to get started, here are some tips I offer my clients to overcome their own mental blocks:

1. Start Small and Build Confidence: If a large goal feels intimidating, start with a realistic target, like one month’s worth of expenses. Achieving small milestones builds confidence and creates momentum, making it easier to stay motivated.
2. Automate Your Savings: Set up an automatic monthly transfer to a separate account specifically for emergencies. Automation makes saving effortless, helping you stick to the plan without constant decision-making. I set up my savings contributions to come out the day I get paid so it’s gone before I even know it’s there.
3. Reframe Saving as Self-Care: An emergency fund isn’t just a financial goal; it’s a form of self-care. Knowing you’re prepared for the unexpected reduces stress, giving you greater peace of mind and control over your finances.
4. Balance Debt and Saving: While paying down debt is crucial, you don’t have to choose one or the other. Saving even a small amount while paying off debt helps you avoid new debt if an emergency occurs, protecting your overall financial health. You can also contribute to your investments at the same time so you’re not missing out on valuable compounding years. Contrary to popular belief, when it comes to money you’re better off multitasking vs tackling one goal at a time.
5. Celebrate Milestones: Reward yourself as you reach smaller savings goals along the way. For example, when you save one month’s worth of expenses, recognize that achievement. Celebrating progress keeps you engaged and motivated to reach your larger goal.
6. Visualize the Peace of Mind: Imagine the relief you’ll feel knowing you’re prepared for life’s “what-ifs.” This mental shift can help saving feel more urgent and rewarding, as you’re creating a tangible sense of security for your future self.

Remember, starting an emergency fund doesn’t have to feel overwhelming. Just small, consistent contributions can add up surprisingly fast, getting you closer to your savings goals one step at a time. Little things like setting up automatic transfers, balancing debt repayment with modest savings, and celebrating your progress along the way can make the whole process way more manageable.

In the end, it’s not just about the savings—it’s about the peace of mind you get from knowing you’re ready for life’s “what-ifs.”

If you’re still feeling stuck or have questions, reach out anytime! I’m always here to help and happy to answer anything you’re wondering about starting your emergency fund.