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What is the best way to start building an emergency fund when living paycheck to paycheck?

I'm currently living paycheck to paycheck in Ohio and I know I need an emergency fund but it feels impossible. I make about $2,800 a month after taxes and my expenses take up almost everything. Any practical tips from people who have been in similar situations?

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I was in the exact same boat a couple years ago. Here's what worked for me:

  1. Start ridiculously small - I began with just $25 per paycheck. It felt pointless at first but it builds the habit.
  2. Automate it - Set up automatic transfers the day after payday. If you never see it, you won't miss it.
  3. Use a separate bank - I opened an online savings account at a different bank so it wasn't easy to transfer back.
  4. Sell stuff you don't need - I made about $400 selling things on Facebook Marketplace and that kickstarted my fund.
  5. Pick up a side gig temporarily - I did DoorDash on weekends for 3 months just to build my cushion.


The goal is just $1,000 to start. Once you hit that, the momentum keeps you going. Took me 8 months but I got there.

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Asked By
John Smith
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Personal Finance

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