Here's How Much Extra You'll Have in Your Emergency Fund if You Commit to Saving $25 Each Week (2024)

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.

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.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you 11x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.