A recent MNP Consumer Debt Index survey delivered a sobering snapshot of Canadian household finances: more than 14 million Canadians say they have little to no capacity to absorb an unexpected expense or a disruption in income.

That’s nearly half the population living without any financial cushion — a risky situation in an unpredictable world where job loss, medical emergencies, car repairs or rising rent can hit without warning.

While the standard advice to “build an emergency fund” sounds simple, it often feels impossible when you’re already struggling to make ends meet. But even if your finances are stretched razor-thin, taking small, strategic steps now can help you gradually build a buffer that brings long-term peace of mind.

Here are some practical tips to help you start building an emergency fund when you’re on a tight budget:

1. Redefine What “Emergency Fund” Means - Forget the often-touted goal of three to six months’ worth of expenses — at least for now. When money is tight, that can feel so out of reach that it becomes discouraging. Instead, aim for a modest starting point:........

© Castanet