Here's How Much Extra You'll Have in Your Emergency Fund if You Commit to Saving $25 Each Week

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KEY POINTS

  • With higher living costs, it may feel like saving money is impossible.
  • Starting with a small savings goal is better than not saving at all.
  • If you save $25 a week for 52 weeks, you'll have $1,300 for emergency expenses.

As you work on your savings goals, it's okay to start small.

Many people have plans to set aside more money in their savings accounts, but they continue to put off their goals. You're not alone if you're delaying saving because money is tight. But keep in mind that even a small amount of savings can make a big difference and help you prepare for future expenses that come your way. Find out how much money you'll save if you commit to stashing away $25 weekly for the next year.

Every dollar saved makes a difference

Life is more expensive now thanks to rampant inflation, and if your paycheck is already stretched thin, it may feel like saving money is impossible. Many people assume that they don't have enough extra money to save. If you continue to put off your savings goals year after year, it'll be harder to handle emergency expenses that arise.

Not everyone can commit to hefty savings goals -- and that's okay. But it's essential to start somewhere. If you can save even a few dollars a week, it's better than not saving at all. While it will take time to reach your savings goals, you'll be well on your way to getting there.

The importance of an emergency fund

An emergency fund is a valuable financial tool. Unfortunately, many Americans don't have one. You never know when an unexpected vet bill, car repair, or home maintenance task will come your way. When you have an emergency fund, handling these situations is less stressful.

Our Picks for the Best High-Yield Savings Accounts of 2024

APY
4.25%
Rate info Circle with letter I in it. 4.25% annual percentage yield as of July 21, 2024
Min. to earn
$1
APY
4.50%
Min. to earn
$0.01
APY
5.10%
Min. to earn
$0

Ideally, having at least a few months' worth of your everyday expenses saved in an emergency fund is best. But even a small emergency fund can help you when unexpected expenses arise. Don't be afraid to start with a small goal as you work to build your fund.

If you struggle to save regularly, it can be beneficial to automate the process. You can set up automatic transfers from your checking account to your savings account. Some people like to save weekly, while others prefer a bi-weekly or monthly savings schedule. Do what works best for you. Doing this will override any potential forgetfulness and you'll save yourself some time.

Here's how much $25 in weekly savings will add up

So, you want to start saving but don't have much extra money? If you can afford to allocate $25 of your weekly budget toward savings, your savings account balance will add up faster than you think. If you commit to setting aside $25 each week for an entire year, you'll have $1,300 in the bank. That's a lot of money and much better than having $0 saved.

If you stash your extra cash in a savings account, you'll also earn interest. Right now, many banks are offering competitive interest rates. If you don't yet have a savings account, review our list of the best high-yield savings accounts to find the right account for your needs.

Don't give up on your financial goals

As everyday living costs rise, many of us are feeling added stress. But it's important to stay committed to your personal finance goals. If you have resolutions to save more this year, start with a small goal and make it a reality. Even $10, $20, or $25 a week saved is impressive.

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Two of our top online savings account picks:

Rates as of Jul 21, 2024 Ratings Methodology
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American Express® High Yield Savings Citizens Access® Savings
Member FDIC. Member FDIC.
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor

APY: 4.25%

Rate info Circle with letter I in it. 4.25% annual percentage yield as of July 21, 2024

APY: 4.50%

Min. to earn APY: $1

Min. to earn APY: $0.01

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