Most Americans Don't Have Any Emergency Savings — How To Save $5K in 2026
You probably already know that you're supposed to have an emergency fund in case you have a sudden medical expense, your car breaks down or you lose your job. If you don't have that money set aside, a setback like that can turn into a crisis. And if you go into debt, it could affect you for years to come.
Last year, Kashable's State of Consumer Finance Report survey revealed that 81% of respondents had no emergency savings. If this is you, you'll want to rectify this. Here are some tips to help you finally build that emergency fund in 2026.
Understand Your Situation
Before you start planning, you need to have a clear picture of what you're doing with your money. Start by listing all your sources of income and tracking your expenses for a month.
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Taking a look at your spending can help you see areas where you might be overspending. It's easy to underestimate how much you're spending each month, which can mean you're left without enough to cover everything. But if you understand where your money goes, it's easier to make decisions about where to cut back.
Budget, Budget, Budget
The next step is to make a budget. You're going to need a realistic budget that covers your necessary expenses, lets you do a little discretionary spending and also starts putting money in your emergency fund. The 50/30/20 rule is a good place to start: 50% of your income goes to needs, 30% to wants and 20% to savings and paying any debt.
There are plenty of budgeting tools and apps that can simplify all this and will let you track your spending in real-time. Even once you've made a budget, you still need to review and adjust it regularly to reflect any changes in your situation.
Cut Your Unnecessary Expenses
Take a hard look at your budget and identify areas where you can cut back. Cancel subscriptions, eat out less often or shop sales and discounts. The goal is to free up a little extra cash here and there to put in your emergency fund.
This doesn't have to be painful. Focus on cutting expenses that won't make your quality of life worse. Don't sacrifice everything you enjoy, but do redirect money from less meaningful expenses into your savings.
Now, Build That Emergency Fund
Building your emergency fund is now your top priority. You're going to need at least three to six months' worth of living expenses. You may not be able to save that much in 2026 alone, but you can put yourself on the right track.
Use your budget to decide how much you can save each month. Even small amounts add up over time, so it's important to stay committed!
Open a Dedicated Savings Account
Keep your emergency fund in a separate savings account to keep yourself from dipping into it. You want to put it in a high-yield savings account so the money you're setting aside grows faster.
But remember that your emergency fund is for just that -- emergencies. Which means it needs to be easy to get to. Don't put it into an investment that's hard to liquidate or transfer funds from.
Make Your Fund a Part of Your Budget
Treat your emergency fund like any other essential expense by including it in your monthly budget. If you make it just as important as rent or utilities, you're less likely to let it slide.
Use Windfalls
Tax refunds, bonuses or other unexpected cash are great opportunities to fill your emergency fund. Instead of spending it, put most of it -- if not all -- into savings.
If it's hard to reserve the whole amount, consider splitting it. For example, put 75% of a bonus into your emergency fund, and use the remaining 25% to treat yourself.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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