You don’t need an Emergency Fund!

What is an emergency anyway?
Noun: emergency; plural noun: emergencies
1. a serious, unexpected, and often dangerous situation requiring immediate action.

That will never happen to me, right?

It will, but notice that it says action, not money. When the roof starts leaking, you need a bucket. The fact that the roof is 22 years old means it will leak one day. See it’s not an emergency, it’s expected! The hot water heater breaks, the car needs new tires and brakes, you have a large medical bill. None of these are emergencies, they are just life events. They happen!

You don’t need an emergency fund, you need a life happens fund. Look around at your life, and you can probably guess what’s going to go wrong next. You may even dread it and know it’s coming! Since it is expected, you need to prepare for it. If you use a credit card to pay for when life happens, it turns into a noose that is going to strangle you. If life keeps happening, it’s a downward spiral from there because the noose will get tighter and tighter! You probably know people that have ended up like this, but you think to yourself “I saw that coming!” Of course you did, you know that life happens!

So lets think about it, you should definitely plan for life. Ponder all the possible problems that may arise, and put aside the money to deal with them. When they happen you get upset, you kick the car, but you can pay the bill because you have the money to do so. You know it’s coming so just start being prepared. After all you probably have some Band-Aids and pain medicine when a medical emergency happens, why don’t you have a plan for when life happens?

If I asked you to walk on a high wire, would you prefer there to be a safety net under you? I would think so. So why are you walking through life without a net? You will fall; problems will arise. You can splat or bounce, but you choose which one by how prepared you are.
So now it’s time to figure out how to start putting money aside in a separate account in another bank so that you won’t touch it. Maybe you can sell stuff you don’t want, cancel services you don’t use, or stop spending on things you don’t care about. I, for one, like a big safety net, the kind that I never worry about when I fall on it.

If you need help building your net, please email me and I will help you.

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