Why Emergency Savings Should be Your Next Goal

What if you wake up Monday morning to a broken fridge? What if rush hour pushes you into an accident and totals your car? Do you have emergency savings to fix it? Most Americans don’t. Here’s how you can boost your bank account and soften the blow of an emergency.

If your savings are lacking, you’re not alone. Only 41% of Americans say they could cover a $1,000 emergency expense from savings,¹ and more than 1 in 4 have no emergency savings at all.² Additionally, 62% feel behind on their emergency savings, including 37% who feel significantly behind.³

You may be thinking, “So I don’t have a financial cushion — I still manage to pay my bills.” Sure, you may use credit cards in a pinch, but what happens when a bigger setback hits?

In fact, 60% of U.S. adults faced a major unexpected expense in the past year.¹ If the same happened to you, what would you do? Among respondents:

• 23% said they’d reduce spending,
• 15% would borrow from friends or family, and
• Another 15% would rely on credit cards, creating or adding to debt.¹

Here’s how you can build savings and make a financial emergency just a small bump in the road.

1. Meet Your Goal

Ideally, aim to save 3 months of essential living expenses, but don’t let that big number stop you from starting. Set small, achievable milestones. $1,000 in savings can be a good place to begin. Once you get there, reward yourself (without dipping into the savings!), then keep going: one month’s expenses, then three, and so on.

2. Every Little Bit Counts

Even putting spare change or a few dollars a week into a jar or savings app can help build the habit. Once the habit is formed, consider increasing your contributions from coins and small bills to automatic transfers from your paycheck.

3. Create a Separate Savings Account

Keep your emergency savings separate from your main checking or savings account. This can help reduce the temptation to spend it on non-emergencies and make it easier to track your progress. Consider using a high-yield savings account to grow your funds faster.

4. Find a Better Deal

Struggling to find extra money? Look at where you might cut monthly expenses:

• Shop around for cheaper internet or cell phone plans
• Negotiate with service providers for lower rates
• Use off-peak hours to reduce electricity costs

Redirect any savings to your emergency fund.

5. Work with a Money Coach

A Money Coach can help you:

• Track spending
• Build a budget
• Identify opportunities to save
• Stay motivated and accountable

Working with a coach helps you build financial skills that support both short-term savings and long-term goals.

6. Experience Peace of Mind

Having emergency savings offers more than financial coverage; it brings emotional relief. You’ll be better prepared for life’s curveballs and less reliant on debt. One MSA member shared:

“It’s my birthday, and my newer (2010) car decided to break down while I was driving it today. I’m so happy we have that emergency savings account, thanks to you! This stuff isn’t so bad when you have a little cushion.”

Build your emergency savings and gain confidence knowing you can handle whatever comes your way. Schedule a session with a Money Coach and start today.

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¹Americans backtrack: Just 41% say they could pay a $1,000 emergency expense from savings. Bankrate, January 2025. https://www.bankrate.com/f/102997/x/1c82ee6b93/january-fsp-press-release-final.pdf

²Emergency savings: Nearly 3 in 5 Americans are uncomfortable with their emergency savings. Bankrate, June 2024. https://www.bankrate.com/f/102997/x/5c7b3bea64/june-2024-fsp-press-release.pdf

³62% of Americans feel behind on emergency savings. Bankrate, October 2024.  https://www.bankrate.com/banking/savings/emergency-savings-survey/