How You Can Rebuild Your Emergency Fund — Even in an Uncertain Economy
How You Can Rebuild Your Emergency Fund — Even in an Uncertain Economy
Paige CerulliMon, February 23, 2026 at 9:07 PM UTC
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Having an emergency fund can be a relief when you encounter unexpected expenses, like a vehicle repair or medical bills.
Once you use your emergency fund, you’ll need to rebuild that fund up again, but doing so in an uncertain economy can be challenging. Changing your savings strategy can help you rebuild your emergency fund, even in today’s economy.
Determine the Ideal Size of Your Emergency Fund
Typically, rule of thumb is to set aside three to six months of living expenses in an emergency fund. But when the economy is uncertain, prices are increasing and the chances of being laid off increase, you may need to build up an even larger savings.
Austin Kilgore, analyst with the Achieve Center for Consumer Insights, explained that it’s wise to build up an emergency fund to cover at least six to nine months of base living expenses. In an uncertain economy, many experts recommend building up 12 months of living expenses. “Rebuilding to that point can be intimidating, however, especially in an economy of rising prices,” he said.
Keep in mind that the emergency fund won’t need to be equal to your salary, Kilgore explained. The fund is only intended to cover your essential expenses, like your rent or mortgage, utilities and food costs.
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Focus on Steady Progress
View rebuilding your emergency fund as a process. Mary Hines Droesch, head of consumer, small business and wealth management banking and lending product at Bank of America, explained that even saving $5 or $10 per week counts.
“Any amount helps build the habit and proves to yourself that you can do it,” she said. “Pair it with a tiny swap, like skipping a coffee or a takeout meal and move that money straight into savings so you can see progress in real time.”
Find Your Hidden Money
Hines Droesch suggested starting by looking at your monthly subscriptions and memberships, including streaming platforms, apps and gym fees. Then, cancel the subscriptions you rarely use.
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“It’s an easy way to free up cash without making a major sacrifice,” she explained. “Redirect those funds into your emergency fund, because even $10 or $20 a week adds up quickly over time.”
Cut Back on Spending
Next, focus on cutting back on spending. According to Hines Droesch, reducing your spending doesn’t mean cutting out everything you enjoy, but you should be more intentional with your spending.
“These small shifts can lead to meaningful savings each month, giving you the room to prioritize your emergency fund over discretionary spending,” she said.
Increase Your Income
Try to find ways to increase your income so you can contribute more to building your emergency fund. If it’s possible for you to get a second job, retail and food service jobs often offer part-time and flexible hours. Gig work can also provide you with extra income.
“You can also think seasonally: some tax firms need non-accounting help during the spring,” Kilgore said. “Plenty of tourism and outdoor businesses need part-time help during he summer.”
Make Saving Routine
Kilgore recommended automating your emergency fund contributions. Determine a dollar amount that you want to contribute to the fund each week or every-other week.
“If you can’t do it via direct deposit from your employer, banks and credit unions typically will let you set up a regular transfer from a checking account to savings account at no charge,” Kilgore said.
Automating your contributions eliminates any decision-making, so you can consistently grow your fund.
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This article originally appeared on GOBankingRates.com: How You Can Rebuild Your Emergency Fund — Even in an Uncertain Economy
Source: “AOL Money”
