Everyone needs an emergency fund. Financial experts recommend it, and we’ve all experienced surprise expenses: a costly car repair, a broken water heater or unexpected medical bills. Despite our best intentions, building a financial cushion can feel impossible. After rent or mortgage, groceries, utilities and everyday expenses, it seems there’s nothing left to save.

If this sounds familiar, you’re not alone. Many Americans struggle to maintain emergency savings. But building those savings doesn’t necessarily require massive lifestyle changes or windfalls. With a strategic approach and realistic milestones, you can create the financial safety net you need.

Start small and build momentum. Traditional advice suggests saving three to six months of total expenses. It’s excellent goal but can feel overwhelming when you’re starting from zero.

Instead, begin with a more achievable target, such as $500 or a full month’s worth of expenses. The key is to get started and contribute consistently.

Even a few hundred dollars can provide meaningful protection and help you avoid relying on credit cards or high‑interest loans. This initial milestone can cover many medium-sized emergencies. Once you reach the first milestone, work toward one and a half to two months of expenses, then the full three to six months.

Find money you didn’t know you had. Building your emergency fund doesn’t always require cutting expenses. If you’re employed, set up automatic transfers from your paycheck into a separate savings account. Cancel subscriptions you rarely use, shop around for better insurance rates and take advantage of sales whenever you can.

Consider saving windfalls like tax refunds, work bonuses or birthday money. If your budgeted expenses come in lower than expected — perhaps your health care costs or home maintenance needs were less than anticipated this month — save the difference in your emergency fund.

Have a dedicated account for your fund. Keep your emergency savings in a separate account from your regular checking, so you’re less tempted to use the money for non-emergencies. Choose an account that’s easily accessible and without penalties and, while you shouldn’t invest emergency money in stocks or bonds, look for an account that earns interest.

Balance competing priorities. Building an emergency fund is important, but it shouldn’t come at the expense of other crucial financial goals. If you’re carrying high-interest debt or missing out on your employer’s retirement contribution matches, address those priorities first, while still building your emergency savings.

Ultimately, you’ll want to balance your emergency fund with other goals. To determine an emergency savings target, consider your personal risk for unexpected expenses, your job security and family circumstances. You may need three to six months’ worth of savings, or possibly some other amount. If this step feels overwhelming, ask a financial advisor to help you come up with a suitable plan.

The path to financial security requires progress rather than perfection. Begin where you are, use what you have and take one small step at a time. That first $500 might feel modest, but it represents the freedom to handle whatever life throws your way.