Read Related: 6 Steps to Creating a Foundation for WealthTips for Building an Emergency Fund Start Small: Don’t worry if you can’t put in the $500 in one lump sum to start. Start putting away a few dollars here and there until you reach at least $500, or higher if you prefer. Creating the habit of saving is what’s important.
The point of a savings account is not to save, it’s to create a cushion for your checking account. The savings account is usually linked to the checking account through your ATM card. When you want to spend more money that you have available in your checking account, you don’t worry because you know that the financial institution will pull the amount necessary from your savings account. That sounds great, until you realize it’s also the reason why you rarely end up saving money in your savings account.