I spent years saving to build up a $50,000 emergency fund — and now 2 unexpected medical bills have depleted it entirely. How do I start to rebuild?

Joe’s story may feel dramatic, but it’s far from unusual. In fact, according to Bankrate's 2025 Annual Emergency Savings Report, only 46% of all Americans have enough saved to cover three months of expenses. Another 30% have some money saved for emergencies but not enough to pay for three months of bills, and nearly a quarter have nothing saved at all.

But an emergency fund is essential, and Bankrate found that 37% of adults relied on their emergency fund sometime in the past three months.

Set a specific savings goal

Losing an entire emergency fund in one fell swoop can feel discouraging. But as hard as it is to see that balance disappear, it’s important to remember that the fund did exactly what it was designed to do: protect you during a crisis. Building an emergency fund once and keeping it untouched forever might be ideal, but the reality is that it exists for moments like these.

To start rebuilding an emergency fund, the first thing you'll want to do is to set a specific and realistic goal for rebuilding your emergency fund. What's reasonable for you will depend on what your income is. It’s generally recommended that an emergency fund will have enough money to cover 3 to 6 months of essential expenses (housing payment, utility bills, etc.).

For example, if your monthly essential expenses are $2,000, then six months of emergency funds would be about $12,000.

Once you’ve identified how much you need to save, the next step is figuring out what you need to set aside each month to get there. The timeline should fit your income and circumstances. If you aim too high, you risk leaving yourself cash-strapped and stressed, which makes the process unsustainable. A more realistic plan, even if it takes longer, will keep you motivated.

If your goal is to save $12,000, you could aim to save about $300 per month for three years.

Of course, you also don't want to abandon other goals, like saving for retirement and earning your employer a match on your 401(k) funds, so look at the big picture and find a balance for how fast you can rebuild.

Track your spending and make a detailed budget

The next step is to track your spending and make a detailed budget that is both realistic and that prioritizes saving for emergencies. Living under a strict budget can feel restrictive, but while you’re rebuilding an emergency fund, it’s a necessary — and temporary — state. Once your savings are back on solid ground, you’ll be able to loosen the reins a bit and enjoy more flexibility.

If you look back at credit card statements and monitor what you're spending money on now, you'll get a good baseline for where your cash is going. Using this information, you can create a detailed budget that accounts for every dollar, and that includes the money you're trying to save for emergencies.

For example, you can specify in your budget how much you'll save, as well as how much to spend on groceries, entertainment, clothing, dining out, housing, transportation and all of your other costs.

Treat those contributions as non-negotiable, the same way you would a rent payment or utility bill. By putting emergency savings first and building the rest of your budget around it, you make sure progress happens consistently, even if other spending categories have to tighten for a while.

Look for big, and small, cuts that you can make

Next, look for areas in your budget that you can cut to make sure you can meet or exceed your goals in saving for emergencies. Some of these cuts might feel small, like canceling a $10 subscription, while others, such as refinancing debt or shopping for cheaper insurance, can make a bigger impact. Here’s what you can look for:

• Streaming services
• Unused gym memberships
• Your clothing budget (consider shopping at thrift stores or not buying new things)
• Your grocery budget (you can use coupons)
• Your cell phone bill (shop for a cheaper plan)
• Your transportation costs (consider carpooling or public transportation)
• Your utility bills (turn down the head or the AC and unplug unused appliances)
• Your entertainment costs (look into free activities)
• Your insurance costs (increase your deductibles or drop unnecessary coverages)
• Your bank fees (switch to a bank that doesn't charge)
• Your debt expenses (refinance to a loan with a lower monthly payment)*

The key is to examine your spending line by line and ask yourself if each expense is essential right now. Remember, this rebuilding process is temporary so you don't have to sacrifice forever.

Automate the savings process

Once you’ve found room in your budget, the best way to make sure you actually save it is to take the decision out of your hands. Automating contributions means the money moves into your emergency fund before you have the chance to spend it elsewhere.