Remember those stimulus checks? For a while, they gave many of us a little extra breathing room –whether that meant catching up on bills, padding our savings or splurging just a bit.
But now that those payments are a thing of the past, it’s easy to feel the pinch if your emergency fund still hasn’t gotten off the ground.
A U.S. News & World Report survey shows that 42% of Americans don’t have an emergency fund.
Read More: 10 Unreliable SUVs To Stay Away From Buying
Check Out: Here’s How To Build an Emergency Fund Without Blowing Your Budget
Here’s the thing: Life happens — cars break down, appliances quit and unexpected expenses always seem to pop up at the worst times. Without a financial cushion, even a small surprise can send your budget into chaos. That’s why rebuilding (or finally starting) your emergency fund is so important.
Here are a few simple ways to grow your emergency fund again.
Treat It as a Mandatory Expense
According to Rami Sneineh, vice president and licensed insurance producer at Insurance Navy, restoring an emergency fund is not an instantaneous process, and the most neglected approach is to treat it as a mandatory expense every month just like you do with rent or utilities.
Setting aside a certain number of dollars, say, $150 or $200, per month into a different account (savings account) automatically means that progress is being made and no decisions are needed to be made regarding it.
He said this will make it predictable and you won’t be tempted to spend that money elsewhere.
Trending Now: Clever Ways To Save Money That Actually Work in 2025
Monetize Current Assets
Another strategy Sneineh said is usually overlooked is the practice of monetizing current assets.
“Lots of homes have equipment lying idle, electronics or even an old car. Reselling such items and contributing all the dollars to the fund will yield an instantaneous jump of $500 to $1,000, reducing the period required to get to a significant cushion,” he explained.
Sneineh noted that although the most frequent recommendations are to take up side jobs or reduce how often you go out to restaurants, speeding up the process by using intentional sales of dormant assets provide a more concrete beginning and provide momentum.
Don’t Get Overwhelmed — Build Momentum
“Don’t get overwhelmed by the idea of saving three to six months of expenses right away,” said Devin Miller, co-founder of SecureSave.
He recommended starting by building momentum with just $20 to $40 each paycheck into a dedicated emergency savings account, ideally automated through your employer if they offer ESAs.
“Our research shows that most emergencies are under $200, things like a car repair or a medical bill, so even a few hundred dollars makes a big difference in avoiding debt and stress,” Miller said.
Once you see progress, it’s easier to grow that and save over time.
More From GOBankingRates
- 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025
- I Paid Off $40,000 in 7 Months Doing These 5 Things
- I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money
- 7 Ways To Tell If You're Rich or Middle Class -- It's More Than Your Paycheck
This article originally appeared on GOBankingRates.com: Stimulus Checks Are Gone. Is Your Emergency Fund Still Empty? 3 Ways to Build It Up Again
