How to Build an Emergency Fund (Even If You’re Starting from $0)

What’s an Emergency Fund (and Why Do You Need One)?

An emergency fund is money set aside for life’s unexpected expenses—think car repairs, appliance breakdowns, or medical bills. It helps you avoid falling into credit card debt or scrambling for cash when life surprises you.

“Most people feel overwhelmed by the idea of saving three to six months’ salary—but the key is to start small and build from there.” – Landon Bradfield

🚦 Landon’s 3 Levels of Emergency Savings

Level 1: $400

• • Your first goal: Just get to $400
  • Why? Because over 40% of Americans don’t have enough saved to cover a $400 emergency.
    
    

Level 2: $1,000–$3,000

• • If you own a car or a home, you’ll likely face larger, but still manageable, emergencies.
  • This level helps you handle more than just the basics.
    
    

Level 3: 3–6 Months of Expenses

• • This is your long-term goal
  • It covers income loss or bigger emergencies
  • It can feel overwhelming—but by building levels 1 and 2 first, you’re already on your way
    
    

🧠 Smart Tips to Make It Happen

• Name Your Savings Account
  Give it a purpose like “Emergency Fund” so you’re less tempted to use it for impulse buys.
• Break It Into Bite-Sized Goals
  Don’t aim for $5,000 overnight. Start with saving $10, $25, or $50 from each paycheck.
• Separate Expected vs. Unexpected Expenses
  • Tires, back-to-school supplies, and Christmas aren’t emergencies—they’re recurring.
  • Create mini savings accounts for those too.
• Use Tools That Keep You On Track
  Jordan Credit Union offers a free Money Management Tool that lets you track savings, build budgets, and even pull in data from other accounts—all in one place.