Let’s be real for a second: the cost of living is wild right now. Groceries feel more expensive every week, gas prices are unpredictable, and housing costs are rising.

So, rich friend, how are you supposed to save for emergencies when keeping up feels impossible?

I see you. I was you.

The worst part is, even when you manage to put a little something aside, your savings account thanks you with… $0.01 in interest. Cool, thanks. 

But here’s the truth: having an emergency fund is the most important step you can take to protect your financial future. Life doesn’t give you a heads-up before the chaos hits.

My chaos was brain surgery. No job. No income. No health insurance. Piling medical bills. 

But my emergency fund saved me. That’s why I’m here, waving my arms and shouting from the rooftops: you need an emergency fund! Let’s break down exactly how to build one, even when money feels tight.

Step 1: Start Small & Gain Interest

You don’t need to save $100,000 overnight. Decide on one less dinner out per month, and magically, you have $100. Stay with me; it’s not about the amount. It’s about building the habit.

If you can commit to $100 per month (I’ll teach you how to automate it), you can do $105 next month. And $110 after that. Before you know it, you will have three months worth of expenses saved, which is a fantastic starting point. 

Now, here’s the fun part. You can actually make money on your emergency fund. By keeping the cash in a High Yield Savings Account (HYSA), you’ll earn monthly interest payments. That’s real money that adds up over time!

All of the following options are no-fee accounts, meaning there is never any fee to use your HYSA. Additionally, they are all FDIC insured, which means that up to $250,000 of your money is federally insured. 

A HYSA is not an investment; it is a savings account. There is no risk involved.

Some of my favorite HYSA options right now:

1. Ally (3.3%) - a great interface that allows you to create savings buckets

2. Marcus by Goldman Sachs (3.85%) - simple and straightforward user experience.

3. SoFi (4.3%)  - Must set up direct deposit to take advantage of APY

All links above are referral links. This means that you and I both get a cash bonus when you use my link. I personally use both Marcus & Ally for banking, which is how I got the referral codes in the first place. Lots of my clients use & love SoFi as well. Rich friends help each other get more cash!

Step 2: Automate It

Set up automatic transfers. Choose a date (perhaps the day that you get paid?!) and set that $100 to go into your emergency fund. Ensure that this automation runs every month.

This automation, combined with interest, ensures that your emergency fund grows without requiring your active involvement. This is the ultimate set-and-forget-it.

The caveat with automation is that you won’t have as much extra cash at the end of the month to spend on another Amazon order. The positive? You’ll have an emergency fund growing faster than you can say “peace of mind.”

Step 3: Use It—Then Refill It

If an emergency happens—car repairs, vet bills, sudden unemployment—this fund is your go-to. Use it. Don’t feel guilty. That’s exactly what it’s there for.

However, once you’ve used it, make a plan to refill it. Keep the cycle going so you’re never left unprepared again.

Side Note: What About a Credit Card??

Yes, you can use your credit card in an emergency. But at a 25% national average interest rate, you’ll be paying $125 for every single $100 bill you borrow. It seems like a surefire way to get the odds stacked against you and your financial future.

Happy wealth-building!

Brooke Busi is a Certified Financial Educator and founder of Brooke Builds Wealth. She spends her time reading finance books, eating Trader Joe’s snacks, and helping you turn “WTF is a Roth IRA?” into “Look at my investment portfolio!” She doesn’t sell investments or financial products. Instead, she's made money fun and approachable for over 3,500 beginners through workshops, courses, and coaching. Find her on Instagram or invite her to lead a financial literacy workshop for your organization. 

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