I'd say try for *10% at the vey least AS SOON AS YOU CAN GET THERE! Yes, you may have to start with $5.00, but I'd shoot it up as fast as you could to 10% and then go towards *15% by the end of year two. AND, I wouldn't use this money for CC debt. Absolutely not. This is for your future. CC debt is your past! IMHO, it should go to getting the emergency fund up and capitalized. Don't be discouraged if the first month or two you have to tap into it. BUT don't make it a habit.
You've probably been making car repairs or some medical expenses etc. spending on the credit cards in the past. And, until you get something put back for these types of emergencies then when something comes up in the next year you're likely to have to hit the EF for those items. Don't despair, just keep putting YOURSELF first on the list to be paid on payday. Over time the scales will tip in your favor.
Once you get into the swing of making a budget/spending plan each month then you'll see where you've left yourself open to DEBT. {out OUT D*mn Spot!! ...and then you'll start budgeting each month for car repairs, med copays, clothes for work, clothes for children, Christmas, etc. THEN when those events happen you'll be ready. Like the other poster said Christmas and back to school clothes - these things aren't emergencies!
unless you spend the money you earn today that should be being set aside for these TO BE EXPECTED expenses.
After a bit the EF will get to that 3-6 months of salary level and you'll use it for what it's intended for - to buffer yourself in the event of a layoff/illness.
Once that's in place IF NOT BEFORE you can start your Retirement planning/savings.
The way I see it - you need those little subaccounts or something like them at some of the online banks like ING or ED where you can toss your daughters riding lesson money each payperiod, so when it's due you just run it back into the checkbook to make the payment. For example if the lessons are 1200 a year (for simplicity sake) then you need to be socking back 100.00 a month for that. Maybe 50 a month for Christmas, 50 for car repairs, 25.00 for copays, etc., etc. Plug in your own numbers.
I tell The Hubster every year the day after my birthday, only 364 shopping days left. But every year the week before my bd he's in a panic as to where he's going to get the money to buy me something. ...uh, dude, why not save a little all year long?? We don't spend much on each other for gifts, but a couple of bucks a month put back would buy a CD or something... KWIM??
*Where do we get the numbers 10% & 15%? Traditionally financial planners told people to save 10% of their salaries, but that is really not cutting it in today's inflated world. Go for the 15-20% range as soon as you can. Seems impossible at first, but you can do this!! I promise!!