Bad things can happen to everyone. Sooner or later, the car will need repairs, or unemployment could occur. Not only are these events stressful, but they are also costly.
A recent survey from insurance and financial services company New York Life found that 44% of respondents say an emergency expense of $1,000 would deter planned expenses or investments. Another 39% say it would prevent them from covering a long-term financial goal.
You can protect your future self today by building a rainy day fund. How much do you need? Personal finance experts recommend having three to six months of living expenses.
That might seem like a lot, but don’t feel intimidated. Here are a few ways to build one quickly.
1. Open a high-yield savings account
Inflation has driven up prices on rent, groceries, and gas, but it also means savings are earning more interest than they used to.
Since savings rates have been rising, you could score an annual percentage yield (APY) as high as 4.5% to 6%, depending on what kind of account you’re using.
Pro Tip: Acorns helps you save, invest, and grow for your future. Their automated saving, investing, and spending tools help you grow your money and your financial wellness.
2. Set up automatic transfers
Building an emergency fund can be difficult if you have to think about regularly transferring money into a savings account.
You shouldn’t have to think about it. Instead, set up automatic transfers. It’s easy to do.
Either set up direct deposit to automatically send a portion of your paychecks to your savings account, use a bank account’s auto transfer feature, or automate using a smart app on your phone.
Pro Tip: Earn as much as possible on your emergency savings. For example, SoFi Checking pays a competitive APY on emergency savings, plus a cash bonus for new members who set up direct deposit.
Earn up to 4.40% Annual Percentage Yield (APY) on one SoFi Savings account with a 1.10% APY Boost (added to the 3.30% APY as of 10/20/26) for up to 6 months. Open your first SoFi Checking and Savings account between 10/20/26 and 12/31/27, then within 60 days of account opening receive an eligible direct deposit OR $5,000 or more in qualifying deposits. You must maintain eligible direct deposit or $5,000 in qualifying deposits every 31 days to keep the Boost, for up to 6 months. Rates variable, subject to change.
Terms apply at sofi.com/banking. SoFi Bank, N.A. Member FDIC.
3. Sell your old stuff
Chances are, you have things lying around your house that you probably forgot you owned.
Selling your stuff isn’t a regular source of income, but if you put what you earn from a garage sale (or from selling items through eBay or Facebook Marketplace) into your savings account, that could help build your emergency fund fairly painlessly.
4. Rethink your insurance
Reevaluate your insurance policies to uncover savings for your emergency fund. Switching to a usage-based car insurance plan, bundling auto and home policies, or adjusting home insurance coverage—such as adding safety features—can lower premiums.
For health insurance, a high-deductible plan paired with a Health Savings Account (HSA) may reduce costs while helping you save for medical expenses. Redirect these savings to build your financial safety net.
Pro Tip: If you have a high-deductible health plan, you should have a Health Savings Account. Check out Lively HSAs.
5. Cut spending when you can
If you can afford it, cutting non-essential spending like entertainment, shopping, and dining out while saving part of your paycheck can help you quickly build an emergency fund.
Smaller changes, such as using coupons, buying generic brands, or reducing subscriptions, can also make a difference.
Start by creating a budget and tracking your expenses to identify areas where you can cut back effectively.
Pro Tip: When shopping online, get 3-15% cash back with easy-to-use rebate services like Capital One Shopping or Rakuten.
Get started before disaster hits
Building an emergency fund takes time and consistency, but it’s worth the effort. While speed is helpful, take the time to carefully explore your options and choose an approach that fits your circumstances–one that you can stick with over time.
Once your fund is in place, protect it by sticking to a clear spending plan. It’s easy to justify dipping into your savings for non-emergencies, but discipline is key to maintaining your safety net for when it’s truly needed.
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