Building up an emergency fund can be a real struggle and many Americans are unprepared for unexpected expenses.
According to a January 2025 U.S. News & World Report survey, 42% of Americans don’t have an emergency fund and 40% couldn’t pay for a $1,000 emergency expense. Many feel like it’s impossible to build up an emergency fund for tomorrow’s possibilities with so many pressing bills that are real and imminent.
You don’t necessarily have to save large amounts of money each month to build up your emergency savings, though. Micro-saving is an innovative savings approach that can help gradually build up your emergency fund without feeling like such a challenge.
According to Cody Schuiteboer, President and CEO of Best Interest Financial, micro-saving refers to the practice of putting aside small amounts of money to support savings goals. By focusing on these smaller amounts of money, micro-saving can help motivate people to save, rather than being overwhelming. “Most people find saving up to $500 to be such a psychological and financial barrier,” said Schuiteboer. “In contrast, saving $15 each paycheck is a very manageable and sustainable practice for a lot of households.”
Eleanor Victorioso, CPA, Fractional CFO and Money Coach at The Doubleline Advisory Services, said that micro-saving can be a valuable tool to build habits beyond their small contributions to your nest egg.
“By consistently moving small amounts into an emergency fund, you learn how to build a habit first while building a small balance,” said Victorioso. “The main goal is to build the habit and reduce overwhelm. Over time, those small deposits accumulate while you build confidence.”
As you get comfortable with micro-saving and create a habit of contributing to your emergency fund, you’re more likely to stick with that habit in the future. Consistent contributions can help build up that fund, boosting your financial security and helping to reduce stress.
Victorioso added that micro-saving is also a great strategy if you have an irregular income and are at a low-income point in your year. For example, if your business income typically drops for a few months, you can still save a few dollars to maintain your spending habit as your income fluctuates. Staying consistent with saving helps you continue to make progress toward your goals and continues to reinforce your saving habits.
Schuiteboer recommended some simple micro-savings methods that are easy to implement. For example, you can round up your debit card purchases to the nearest whole dollar and deposit the difference into your savings account. If you use your debit card regularly, the savings will start to add up without you even thinking about it.
He also suggested a saving-spending divide method. “You can reserve 10% of your take-home cash each pay period and put it in a high-yield savings account that earns between 4% and 5%,” he said.
There are many other micro-saving strategies to explore, too. Victorioso shared several strategies, including making weekly micro-transfers to your savings account. You can automatically schedule small, fixed amount transfers of $10 to $25 per week, so your savings account grows without you having to remember to make deposits.
You can also put “found” money to use in your emergency fund. If you save money through cash-back rewards, rebates and small refunds, direct those savings into your emergency fund account.
To increase your chances of being successful with micro-saving, Schuiteboer recommended making the savings process as automatic as possible. “Transfers made on payday or the day after into a separate account help make savings automatic and also prevent you from spending that money,” he said.
He also suggested tracking your savings progress with a spreadsheet or a savings app. “Watching your savings amount grow is incredibly motivating and helpful in making your micro-saving a habit,” he said.
While there are many micro-saving strategies that you can use, Schuiteboer advised that you pick just one method to get started. Using multiple methods can become more complex, but micro-saving should be easy. Try one strategy and, if it doesn’t work for you, move onto another, but keep things simple to increase your chances of being successful.
