How to Start an Emergency Fund – A Simple Family Backup Cushion Without Stress
How to Start a Simple Family Backup Cushion
Having a back up cushion or savings is not a new idea and people feel differently about how much that should be and what it should look like. However, when the car needs repairs or the water heater goes out… if you don’t have the money to fix the problem, your stomach can drop.
A backup cushion isn’t about fear, it’s about preparing, and the good news is, you don’t need a dramatic financial overhaul to start one. There’s no need to be stuck on how to start an emergency fund… you just need a beginning.
What Is a “Backup Cushion”?
A backup cushion is simply a small emergency fund. It’s money set aside for:
- Car repairs
- Medical co-pays
- Broken appliances
- Unexpected school costs
- Travel emergencies
- Loss of a job – permanently or temporarily
It’s not vacation money, and it’s not investing money (in the traditional sense, though there are ways to invest this money that allow for fast liquidation if needed)… it’s simply peace-of-mind money.
It doesn’t have to be huge to work. Many suggest 3-4 months’ worth of expenses… like every bill. That can be a lot, but even $500–$1,000 can dramatically reduce stress in a home, and once you have that, you can continue to save and feel a little more secure!
Why We’re So Grateful We Had a Cushion
We bought our home almost 19 years ago. When we bought it, we knew eventually we’d need a new roof, but when your kids are little and life is busy, “eventually” feels very far away.
We never had a leak (our attic is finished, so we would have known) and structurally it was solid, however, it looked tired. The burgundy coating (yes, it was a terrible color for a roof) on the tiles had started peeling, and from the ground, it didn’t look great, but we never had issues.
Then we decided to switch home insurance companies. Every company that came out looked at the roof and flagged it. Even though it was sound and even though we never had any leaks, not a one would cover us for any roof damage in the event of a claim. If a tree fell or a storm hit, we would have been on our own.
That changed everything. We had to replace our roof, and we had to do it on someone else’s timeline, not ours. If we hadn’t had access cash without crazy loans or panic… we would have been stuck.
It happened again about a year and a half later. Our furnace and air conditioning unit were older but had worked beautifully for years. Then, they showed some signs of age, and my husband kept them running for a couple seasons. Finally, they both gave out and while the air conditioning stopped at the end of summer, the furnace gave out in December.
Again, this wasn’t optional. We needed heat in the -10℉ weather we were having… and again, if we hadn’t had a cushion, we would have been choosing between comfort, safety, and debt.
That’s when I realized something… my husband I were adults that had adulted… hard, but more than that, having a backup cushion is a must!
Below are some things that might help you get with a backup cushion. I am not a financial advisor or anything… but my husband and I never had people help us learn these things… and maybe we can pass something along.
How to Start an Emergency Fund
Step 1: Decide on a Starter Goal and Contribution Amount
You don’t have to decide to start with three months of expenses or the idea of a new roof necessarily. Start with something you can easily visualize.
- $500
- $1,000
- One month of groceries
- The cost of something you know you might need, like new tires or a new water heater.
Small wins build momentum and they make you feel good about yourself.
Once you have the starter goal you can decide on your weekly, bi-weekly, or monthly contribution. It doesn’t have to break the bank. It can be $25 a week, $10% of your monthly income, or whatever you can afford.
Step 2: Have a Family Meeting
This is something many parents forget to do… include their kids in family business. Now, not everything is for the kids to know but they are part of the family and including them in appropriate ways is important.
Explain in age-appropriate ways that you’re building a cushion for unexpected repairs or emergencies. Let them understand why pizza night might be biweekly instead of weekly or why a subscription is paused. People adjust better when they understand the “why”.
We’ve had these conversations before, and it has been something that has drawn us together. Doing this gets everyone on the same page and that matters!
Step 3: Open a Separate Account
If your cushion sits in your checking account, it will quietly disappear. While there are different types of accounts to put your cushion money into, I would recommend opening a high-interest rate savings account, at least at first. Some even offer bonuses for opening accounts.
Not every bank has these types of accounts, and some are better than others. You might have to look around and do some research into what account is best for you, however, don’t let that stop you from saving. If the idea of account shopping stresses you out, simply get a savings account at your regular bank.
Wherever you set this up, name the account and commit to not borrowing from it unless it is an emergency… which is the purpose.
Step 4: Automate It
This is the most powerful way to save because you don’t really notice it. Set up an automatic transfer every payday from your paycheck into an account that is designated for the cushion savings. This works because you quickly adjust to what is left and you don’t rely on willpower.
While intentions might be there to save after paying the bills, that leaves the door open to using the money elsewhere. By having it automated, it also takes the extra step away from you, which might not seem like a lot, but why add an extra step if you don’t have to?
We resisted this at first and we put off saving because of it… which in hindsight was a mistake. Now, we have a portion of our paycheck automatically heading into another account and we don’t even miss it.
The automation doesn’t rely on willpower.
Step 5: Protect It
After doing the above, you need to decide what qualifies as a “real” use for the account. If you have set this up for a specific repair or just for life’s challenges, you need to decide what situation, other than the specified use, would allow you to dip into the fund.
If there’s a great sale or something you really want, well… that isn’t a good enough reason. If you need new tires, then yes, that is probably ok… even if you set the account up for a new roof. The goal isn’t to never touch it. The goal is to have something to touch when life bumps into you.
If you dip into it, that’s okay. That’s what it’s for. Just refill it.
Step 6: Grow Your Account
You are already automatically adding to your account from your paycheck, but there are other ways to increase the account.
- Temporarily Cut One Mid-Size Category – This doesn’t mean go bare bones but try to cut something that you can live without and devote that money to the account. This can look like…
- Dining out less. If pizza night is weekly, make it biweekly and transfer the difference immediately.
- Convenience food. For one week, track every fast-food stop, coffee run, or gas station snack. Most families are surprised by the total. Then commit to cutting back for 30, 60, or 90 days and redirect the savings.
- Amazon impulse buys. Use a 48-hour rule. If you still need it after two days, buy it. If the urge passes, move that money into your cushion. This isn’t about blocking necessary purchases — just impulsive ones.
- Extra subscriptions. Audit streaming services, apps, and recurring charges. Pause or cancel what you don’t truly use and transfer the savings automatically.
- Consider Selling Unneeded Items – Most homes quietly hold a few hundred, sometimes a few thousand, dollars in items that aren’t being used. Things like electronics, sports equipment, baby gear, and designer bags are things that people often buy secondhand. You don’t need to purge your house. Just pick one category and sell intentionally for a few weeks. A garage sale or a few online listings can create a meaningful boost to your emergency fund. Think of it as converting clutter into cushion.
- Add Unexpected Money – We all get a little extra money from time to time. It could be a bonus, overtime, tax refund, or birthday money… whatever it is, commit at least 10% of it to the account.
- Revise As You Go – Unless life makes drastic income changes, don’t lessen how much you give, however, if you get a new job or a raise that allows for more income, add more into the account.
A Practical Resource That Helped Us
If you want a clear, step-by-step framework for building an emergency fund and getting organized financially, I recommend The Total Money Makeover by Dave Ramsey.
It’s straightforward and structured. You don’t have to adopt every principle overnight, but the basic idea of building a starter emergency fund first is solid. Even applying one or two ideas can create direction and momentum.
Sometimes it helps to have a roadmap instead of just good intentions.
Want a Simple Place to Start?
If this idea feels good but you’re not sure where to begin, I created a “Saving with Intention” page inside the March Family Binder. Nothing complicated. Just a place to put pen to paper and make a plan.
👉 You can find the March Family Binder pages here.
Final Thoughts
A backup cushion isn’t flashy. It won’t look impressive, at least at first. It won’t feel exciting because of its purpose, that is until the day is saves you!
When something breaks, you respond but not panic. You don’t need a perfect system, you just need a beginning.
If you go from wondering how to start an emergency fund to starting, I’d love to hear about it. You can share your ideas too. Comment below or tag @bemandfam on Instagram or Facebook.
BEM and Fam 🙂
👉 Save This for Later
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