If there’s one thing I can tell you about life, it’s that it loves throwing us a curveball when we least expect it. An emergency fund can feel like a far-off goal if you’re already stretching every dollar, but believe me, it’s worth every penny saved. It doesn’t have to be a massive account with thousands right off the bat. Even a few hundred dollars can help keep you afloat and give you some peace of mind.

The trick is to start with what you have—no matter how little. With some small changes, a dash of patience, and a whole lot of consistency, you’ll see that emergency fund grow. Here are my top five steps to help you get there, even if you’re starting on a low income.

Step 1: Start Small – Even $5 Counts

Let’s kick things off with something that I think stops a lot of people before they even start: thinking that building an emergency fund requires big bucks. The truth is, your first step toward an emergency fund can be as small as $5. Think of it this way—saving a little is always better than saving nothing. It’s not about the amount at first; it’s about building a habit.

Here’s a trick: find a jar, cup, or envelope to be your “emergency fund home” for now. Put it in a spot where you’ll see it often. Every time you get some extra cash—maybe a few dollars here and there from change, tips, or even spare bills you find in an old coat pocket—put it in there. It may seem small, but trust me, over time, it adds up.

Another way to start small is to set aside the same small amount each week. Try saving just $5 every Friday, for instance. It’s not going to change the world on Day One, but by the end of the year, you’ll have $260 saved up. Imagine if you did that for a year or two—suddenly, you’re looking at a good little safety net without feeling like you’re sacrificing much at all.

Step 2: Automate Your Savings

One of the best things about living in a world of apps and online banking is that saving has never been easier. Automating your savings is a powerful tool because it takes away the need for constant decisions. If you’re like most people, trying to remember to transfer money every month can easily fall by the wayside. That’s where automation comes in.

Most banks offer automatic transfers from checking to savings accounts. Try setting up a small, regular transfer to a separate savings account. Even if it’s just $10 or $20 per month, it builds up without you having to lift a finger. If you get paid biweekly, consider an automatic transfer on payday, so you’re saving without even noticing.

Another tool to look into is a “round-up” app. These apps link to your debit card and round up each purchase to the next dollar, transferring the spare change into your savings. So if you buy a coffee for $3.50, the app will round it up to $4, putting that extra $0.50 into your fund. It’s small, but with every purchase, those pennies build up. At the end of the month, you’ll have saved without even realizing it!

If automating sounds intimidating, just start with one small amount and see how it feels. The key here is consistency, not perfection. And don’t be afraid to adjust the amount later as your comfort level with saving grows.

Step 3: Cut Out One Small Expense Weekly

Now, here’s where we make saving even more manageable. Each week, pick one small expense you’re willing to “trade in” for your emergency fund. This doesn’t have to be painful—you don’t need to eliminate every joy in your life to save money! Start with something easy.

Maybe it’s that extra snack you grab out of convenience, a small takeout coffee, or even a subscription service you don’t use as much as you thought. By cutting out just one small expense each week, you’re freeing up a little cash to put directly into your emergency fund. Plus, this “swap” method helps keep you focused without feeling deprived.

Another option is to set a “no-spend day” once a week. Let’s say you decide on Wednesdays—no unnecessary purchases that day. You’ll be surprised at how much you can save by simply putting the brakes on spending for just 24 hours a week. The best part? This approach becomes a habit that strengthens your financial discipline over time.

Over a month, these small changes might add up to $20, $30, or even $50. That’s money that stays with you instead of disappearing on little luxuries. And, if you keep it up, your fund will grow faster than you think.

Step 4: Use Cash When Possible

This one’s an old-school trick but one that works. There’s something powerful about using cash instead of swiping a card. Cash makes spending feel more “real” and keeps you mindful of how much you’re actually using. Here’s how to use this to your advantage with a “cash allowance” approach.

Decide on a set amount of cash you’ll use each week for things like coffee, snacks, or minor entertainment. Keep that cash in a separate envelope labeled “fun money.” When it’s gone, it’s gone—that’s your budget for the week. This strategy can help you avoid impulse buys and unnecessary spending. Plus, any leftover cash at the end of the week goes straight to your emergency fund jar.

Another way to use cash is to challenge yourself to make a single “cash-only day” once a week. Take out just enough cash for the day and challenge yourself not to use your card at all. At the end of the day, any unspent cash goes directly into your emergency fund. It’s a simple habit that can help you save little by little while becoming more aware of your spending.

Step 5: Celebrate Small Wins and Set Milestones

Building an emergency fund isn’t about hitting a massive goal right off the bat. The best way to stay motivated is by setting small milestones and celebrating each one. Let’s say your first goal is $100—when you hit it, give yourself a small reward or treat yourself to something inexpensive that feels like a little victory. Just don’t dip into the fund for the celebration!

After hitting $100, set the next milestone for $250, then $500, and so on. By breaking it up into smaller chunks, you’ll find that it’s less overwhelming, and you’ll be more likely to stick with it. Plus, each little milestone is a reminder of the progress you’re making, which helps keep you motivated on the days when saving feels harder.

Here’s another idea: track your progress visually. Get a small notebook or a chart, and color in a section every time you reach a savings goal. Each filled-in section is proof of your progress and a motivator to keep going. You could even write down a quick note about how the fund gives you peace of mind or why you started in the first place. It’s about building a mindset that values progress, no matter how slow.

Conclusion

Building an emergency fund on a low income may seem tough, but it’s absolutely possible if you take it one step at a time. Starting small, automating your savings, cutting out one tiny expense here and there, using cash for mindful spending, and celebrating each little milestone will get you there. Remember, it’s not about saving up overnight; it’s about creating a habit and sticking with it.

Your emergency fund is like a security blanket for life’s unpredictable moments. Whether it’s a car repair, a last-minute trip, or an unexpected bill, having a little cushion helps you tackle it without stress. Start with just $5, take it step by step, and before you know it, you’ll be amazed at what you’ve saved.