1 in 4 Americans Has Less Than $100 in Savings. Do These 3 Things to Build Your Savings Now

It's time to get serious about building savings if you have little to no money in the bank.

Even if you're the type of person who spends money wisely and pays off their credit cards in full each month, your finances could take a major hit if a surprise bill comes your way and you don't have the cash to pay for it. An estimated 25% of Americans have less than $100 in savings, according to recent data from YouGov. And that's problematic.

If you own a car or a home that ends up needing a sudden repair, your bill might amount to hundreds or thousands of dollars. So if you're sitting on less than $100 in your savings account, you're not equipped to handle that sort of situation.

Similarly, as a general rule, it's a good idea to have an emergency fund with enough money to cover at least three full months of essential bills. That way, if you lose your job, you'll have cash reserves to tap so you can keep up with your expenses while you look for work. But if you have less than $100 in savings, it's fair to say you probably don't have enough money on hand to pay for three months of essential bills.

Now, the idea of building up cash reserves can be daunting, especially at a time when inflation is making life so expensive for everyone. But if you don't build up more savings, you could find yourself in dire straits if you lose your job or face an emergency expense. With that in mind, here are a few things you can do to build up your savings quickly.

1. Get on a budget

I know: Budgeting is boring. But it's an important step toward managing your money and saving more of it. Once you set up a budget, you should have a better sense of where your money is going. And that makes it easier to carve out more room for savings.

2. Think twice before paying for non-essentials

It's natural to spend some of your paycheck on things that make you happy, like store-bought coffee, subscription boxes, or streaming services. But before you hand over your hard-earned money, think about how important a given purchase or expense really is. If, for example, you could really do without that streaming service you only watch on occasion, then you're better off canceling it and putting the money into your savings account instead.

3. Boost your income with a side hustle

Building savings may prove difficult if you don't earn such a high wage. But today's gig economy is booming, so there's plenty of opportunity to go out and snag a side hustle. Since that money won't be earmarked for existing bills, you should be able to stick all of it in the bank (minus what you might have to set aside for tax purposes, depending on how you're paid).

Having less than $100 in savings is not an ideal situation for anyone. If your savings need work, employ these tips to boost them so you have the protection you need.