Start Small. Dont set yourself an unrealistic fund amount in unrealistic time frame. It is always better to save little bit regulary than save large amounts sporadically, especially if you have debt.
It can take away a lot of the money worries that you have since you know that you will always have a reserve should you get into a tight spot. Please find below few important points to consider for creating an emergency fund.
- Ensure the emrgency fund is worth atleast 3-6 months of your monthly expenses.
- If you get a windfall payment (Gift, Bonus, tax refund etc.), deposit atleast 10%-20% in the emergency fund
- Cut down unnecessary expense and deposit the extra savings in the emergency fund
- It is advisable to invest this emergency fund in low risk options like Liquid funds.