Money Glee Monday #7 - The good ol' emergency fund

If you're after another typical post on the emergency fund, you've probably come to the wrong page. Briefly the emergency fund means that if you or your family were to lose their job, become sick or want to take a break you would be able to support your lifestyle.

The emergency fund with a twist

A lot of people taking about having an emergency fund and briefly let's have a few reasons why

  1. Losing your job
  2. Having an unexpected expense i.e. car break-down or surgery
  3. Taking time off to enjoy life (probably not an emergency)

While it's great to know the reasons behind why you might want an emergency fund, the value behind having one is..

The habit that it creates for you

What does this mean the habit?

It means that you're really tricking yourself into having forced savings. The beauty of this is research suggests it takes 21 days to create a new habit. While this varies from where research is taken, it's generally accepted that within 60 days this will happen for you.

A new habit could be anything from doing 5 or 10 push-ups to spending 10 minutes asking your daughter or spouse how there day was to making 10 cold calls per day for your business.

What does this mean for your money?

What this can mean is that through creating and committing to an emergency fund, which is likely to take more than 60 days, you can then start to change your habits and relationship with money.

How is your emergency fund looking, as healthy as this lemon juice?

How is your emergency fund looking, as healthy as this lemon juice?

 

We'll point it out for you what this can mean

  • Ability to get control over how and where you spend your money
  • Have more money to spend on things you enjoy doing
  • Feeling more relaxed about other parts of your life

This really is the foundation of what the emergency fund can help you achieve.

What has stopped you creating an emergency fund in the past?

What would you like to know about the concept?

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Remember to live your Money Glee :)!