I’m Living Paycheck to Paycheck — How Am I Supposed To Build an Emergency Fund?

Core Insights - A significant 65% of Americans live paycheck to paycheck, indicating a widespread challenge in saving money [1] Group 1: Importance of Emergency Funds - Emergency funds are considered the cornerstone of any financial plan, with advisors recommending saving three to six months' worth of income [1] - Many individuals feel discouraged about saving, believing they cannot accumulate sufficient funds, despite many millionaires starting with little and using consistent savings plans [2] Group 2: Strategies for Saving - The principle of "paying yourself first" is fundamental for those struggling to save, suggesting that individuals should allocate a portion of their paycheck to savings before budgeting for expenses [3][4] - Starting small is encouraged; for instance, saving $100 in the first month can lead to $1,200 in savings after a year, which, while not a full emergency fund, is a crucial first step [5][6] - Consistency is key in building savings; sporadic saving is unlikely to prepare individuals for financial emergencies [7]