Build a $1,000 Emergency Fund First

The Problem

You have zero savings buffer. Every unexpected expense goes on a credit card, creating debt spirals.

The Hack

Open a separate savings account. Transfer whatever you can — $50, $100, $200 — every paycheck until you hit $1,000. Then maintain it as a minimum floor.

Why It Works

$1,000 covers: car repair, ER copay, appliance replacement, emergency travel, or job-loss bridge. Having this buffer means emergencies don't become debt.

Pro Tips

• This is step 1 — before investing, before aggressive debt payoff
• Keep in a high-yield savings account earning 4-5% APY
• If you use it, rebuild to $1,000 before resuming other goals
• 80% of unexpected expenses are under $1,000