You need to know how to start an emergency savings account. And you need to start saving today.
I know a lot of you guys are like, “Well, where is all this money for these accounts going to come from? I can’t always make ends meet!”
Well, here is where Financial Fortitude comes in. And understanding a few psychological tricks like the denomination effect and scarcity mindset and their effect on your budget.
Sometimes, you will need to forgo the convenience food to save for it. I am not going to play you. It is hard.
Sometimes, you will have to keep working even when you want to quit.
Sometimes, you won’t have the ability to save. That’s ok, too.
But most importantly, you have to pay yourself first.
Pay Yourself First – Even If It Is Almost Nothing

The easiest way to save to build an emergency savings account is to pay yourself first. Then, add a little bit to your emergency savings account before you do anything else. Even if it is $5 at a time. Putting anything in savings is a win when you can barely make ends meet.
How to Start an Emergency Savings Account with Your Tax Refund
As a large family mom, my tax refund is the time of year when we have the most money.
Don’t blow your tax refund. Instead, use it to start or increase an account.
And you don’t have to put all of it back. We are a large family, so our tax refund is significant. In the past, we have saved some, invested some, bought bulk items for our home, and even paid cash for older cars. So don’t be afraid to split it, but just make sure you are saving something.
Using a Credit Card as an Emergency Savings Account
I know people that just open a credit card, stuff it in the back of some drawer, and call that their emergency savings account.
Don’t do this!
- The card is too accessible. And you will be tempted to use it when you shouldn’t.
- You may have the cash when you need it, but it could wreck your monthly budget. Remember the minimum payment on the card is directly related to the balance. So if you suddenly need $5000, you are signing yourself up for a monthly payment that could be more than you can pay.
- When the card isn’t used, it’s of no value to your credit score.
Conclusion
Saving cash for an emergency is always my preferred method, even if it is almost nothing each month. Pay yourself first or use a predictable income to put money back.