Consider starting an emergency fund
Having your own money set aside to cover unexpected expenses can save you money, because you won’t pay interest, fees, or other costs that come from borrowing the money you need.
Consider starting an emergency fund with $500 as your goal. This is enough to cover common emergencies like a new tire for your car, a plane ticket to care for a sick family member, or minor medical costs.
Once you reach $500, consider increasing your goal to $1,000. This may be enough to help cover your rent if you lose your job, take care of an insurance deductible for major car repairs, or pay for many household repairs.
Having this kind of emergency savings fund is the foundation for setting other savings goals. once you have this set up, it’s easier to focus on saving for other things without worrying about how you would handle an emergency expense.