How to Build an Emergency Fund (Even If You're Broke)

Living paycheck to paycheck is stressful. One unexpected bill—a car repair, medical cost, or job loss—can throw your life into chaos. That’s why an emergency fund is crucial. Even if you're broke, here's how to start building one today.

1. Set a Small Starting Goal

Don’t get overwhelmed by the $5,000 goal. Start with $100, then $500. Reaching those small wins builds momentum.

2. Sell Things You Don’t Use

Look around your home—old clothes, tech, books, furniture. Sell them on Facebook Marketplace or OLX. Even $50 helps!

3. Use a Separate Savings Account

Keep your emergency fund away from your spending account. This prevents you from “accidentally” dipping into it.

4. Cut One Expense Temporarily

Cancel that extra subscription, skip takeout for 2 weeks, or brew coffee at home. Redirect the savings into your fund.

5. Automate a Tiny Transfer Weekly

Set your bank app to transfer just ₹100–₹200 per week. You won’t feel it—but it adds up over months.

6. Use Cash-Back or Reward Earnings

Move cash-back rewards or points to your emergency fund. It’s free money most people forget about!

Final Tip: Your emergency fund is your personal safety net. Start now—no amount is too small. One day, it’ll save you from financial disaster.