How I Built an Emergency Fund on a Low Income

 When I first heard the term "emergency fund," it sounded like a luxury. I was earning just enough to cover rent, groceries, and the occasional weekend treat. Saving even ₹500 felt like a stretch. But after one unexpected medical bill completely threw me off for a month, I knew something had to change.

The idea of saving 3–6 months of expenses felt overwhelming. So I started small—really small. I set a goal of saving just ₹1,000. That felt achievable. And once I hit it, I set the next target: ₹2,000, then ₹5,000, and so on. Each milestone gave me a sense of progress, like I was slowly buying my own peace of mind.

To make it work on a tight budget, I had to get creative. I didn’t cut out all joy or live like a monk—but I did make some tweaks.

I stopped ordering food online and started cooking at home. I paused a few streaming subscriptions. I took up small freelance gigs on weekends—nothing major, just enough to add a few hundred extra rupees a week. And every time I got unexpected money—cash gifts, refunds, cashback—I funneled it straight into my emergency fund.

I also created a separate savings account just for emergencies. Out of sight, out of mind. I treated it like a bill I had to “pay” every month, no matter how small the amount.

There were times I had to dip into it—once for a health issue, another time when my bike broke down. But having that money saved meant I didn’t have to borrow or panic. And every time I used it, I made it a point to rebuild it right after.

What surprised me most was how having an emergency fund changed my mindset. I worried less. I slept better. I felt in control, even when life threw a curveball. It wasn’t about the amount—it was about the habit.

Today, I’ve built a cushion I never thought possible on my income level. It’s not massive, but it’s mine. And if you’re starting from scratch, I want you to know: it is possible.

Start with ₹100. Celebrate the first ₹500. Keep going. One small step at a time, you’re building safety—and freedom.

August 01, 2025 Tags : Emergency Fund , Low Income

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