I've talked extensively about emergency funds on this blog and this is even below that status. They have NO savings whatsoever. The easiest way to go about reconciling this situation is to go and open a savings account. Then have the bank or your employer start to automatically deposit funds. You'll feel a crunch at first, but then you won't even notice it after a month. You'll make adjustments to your lifestyle in order to reflect the changing bank balance. While you're at it cancel your credit cards because you probably have a debt problem. When the account gets to $1,500 then open another account and start putting money into that new account for 6 months worth of expenses. That new account will be your emergency fund, forever and always. Don't touch it unless it's a true emergency (job loss, deductible that your other account can't handle, etc.).
Once you've proven that you can do it you'll have the confidence to save for a down payment on a home. Get started today!