According to a 2025 Bankrate study, 59% of Americans would not be able to cover a $1,000 emergency expense. One of our big goals here at The Money Dad Podcast is to help you get to a place where unexpected expenses don’t cause you to panic. Part of not panicking  is having an emergency fund. Here’s how to work towards saving your first $1,000. 

1. Have A Purpose For Your $1,000

To get over a mental barrier for saving, know and label what you’re saving for. Here are two common categories:

• Emergency cushion (car repair, medical bill, house repair, etc.)

• Specific Goal savings (special trip, an item that you want or need like a new computer, kitchen appliance, clothes, etc., or charitable donations)

Most people start with an emergency cushion, because it keeps you from going into debt when life happens.

2. Keep It Separated

If you are trying to keep all of your savings within your checking account, it will get tricky and most likely, your savings will disappear. Instead try:

• A separate savings account (preferably one you don’t touch often). You can even open a fairly high interest savings account like Capital One’s 360 Performance Savings. It’s free to open and has no fees for keeping.

• Even a cash envelope or prepaid debit card can work if you’re just starting. We don’t recommend this as a long-term solution though.

3. Baby Steps

Save little amounts consistently:

• $5–$10 every time you get paid.

• Or set up an automatic transfer to savings the day after you get paid.
  Consistency wins out against putting away big chunks of money almost all of the time.

4. Find Money In Your Bills

Look for little places in your spending where you’re been negligent and reroute that money:

• Skip one fast-food meal ($10–$20) and put it directly into your savings.

• Cancel a subscription you barely use and can live without ($10–$40/month).

• Sell something around the house you don’t need (old tech, clothes, furniture, tools, etc).

Each little bit adds up faster than you think.

5. Make It A Game

• $5 challenge: Every $5 bill you get, stash it.

• 30-day challenge: Save $1 the first day, $2 the next, $3 the next… after 30 days, you’ll have $465.

6. Protect It

Once it starts growing, resist the urge to spend it unless it’s truly for what you decided (like emergencies). That discipline is what builds financial confidence.

How much time it will really take: If you save $10 a day, you’ll hit $1,000 in just 100 days (a little over 3 months). Even if you only do $5/day, it’s just 6 months. You can do this!!