If you’re setting just one financial goal for 2026, let it be this: build an emergency savings fund with at least $1,000. It might sound simple, but here’s where it gets controversial—nearly half of Australians don’t have this safety net in place. And this is the part most people miss: starting small isn’t just about the money; it’s about building a habit that can transform your financial future.
Every January, we’re bombarded with resolutions, especially after the hectic, expensive holiday season. But let’s be honest—setting goals is easy; sticking to them is where most of us stumble. I’m not anti-resolutions; in fact, I’m a firm believer in the power of goal-setting. However, I also think you don’t need to wait for a new year to make meaningful changes. The good news? If you’re already ahead of the game, kudos to you! But for the 43% of Australian adults—roughly 9.3 million people—who have less than $1,000 in savings, this message is for you.
Why $1,000? You might wonder why not aim for $5,000 or even a three-month emergency fund. The truth is, big goals can feel overwhelming, especially when you’re just starting. Think of it like training for a marathon—you wouldn’t run 42 kilometers without months of preparation. Similarly, financial habits are built step by step. A $1,000 goal is achievable, requiring just $20.40 per week over a year or $40.80 per fortnight for six months. That’s the cost of skipping a weekly lunch out or a few takeaway coffees.
But here’s the real kicker: once you start seeing progress, saving becomes addictive. A 2025 Finder survey revealed that the average savings balance among those 9.3 million Australians was a mere $215, with 18% having no savings at all. Amid a prolonged cost-of-living crisis, it’s no surprise many are struggling. But the danger of not having an emergency fund is real—it leaves you vulnerable to unexpected expenses like car repairs or medical bills.
Where to start? Set up a separate savings account and automate transfers on payday. This way, you’ll learn to budget without that money. High-interest savings accounts can be great, but watch out for terms like minimum contributions or withdrawal penalties. If you think you can’t spare $20 a week, take a closer look at your spending. Small splurges—like daily coffees or impulse buys—add up faster than you think.
And this is the part that sparks debate: Is $1,000 enough? While it’s not a dream buffer, it’s a start. It’s about building momentum and fostering habits that last. Even if you’re saving just $20 a week, you’re creating a mindset shift that can lead to bigger financial wins.
So, here’s my challenge to you: Can you find $20 a week to build your emergency fund? Or do you think aiming for $1,000 is too low? Let’s discuss in the comments—I want to hear your thoughts!
Disclaimer: The advice in this article is general and not tailored to individual circumstances. Always seek professional advice before making financial decisions.
Victoria Devine is an award-winning retired financial adviser, bestselling author, and host of Australia’s No.1 finance podcast, She’s on the Money. She is also the founder and director of Zella Money.
For expert tips on saving, investing, and managing your money, sign up for our Real Money newsletter.
