Emergency fund - Deepstash





Define What Your Emergency Fund Is For To Avoid Spending It Carelessly

Emergency fund

Having an emergency fund is commonly accepted (and good!) advice. When to spend it is addressed less often. 

To make it simple to decide when to use it, define what it's for first.


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Define What Your Emergency Fund Is For To Avoid Spending It Carelessly

Define What Your Emergency Fund Is For To Avoid Spending It Carelessly




Key Ideas

Define what your emergency fund is

Your first step is to figure out what counts as a true emergency. 

Not all emergencies can be predicted, but many can. Car repairs, medical expenses, higher-than-normal bills. Even having a list of things that you can and cannot spend an emergency fund on can help you stay on track and avoid spending it when you shouldn't.



Side Hustle to Make More Money

You don't have to sacrifice all of your free time to start a side hustle, use the time you’re comfortable with and make a little bit of progress every day. 

Take Action

Get to working on improving your finances today, not tomorrow. Reading the steps and thinking you’re capable of doing it but postponing it is just an excuse, an unprofitable one.

Communicate With Your Partner

Talking about your financial goals, and scheduling time once a month to go over your finances together can prevent money from affecting your relationship.

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Managing your emergency fund
Managing  your emergency fund

Having an emergency fund can prove life-saving when you are in desperate need of money. However, before starting to use the money, make sure the situation really requires the measure. 

Evaluating necessity 

One very important reason, if not the most important of them all, when choosing to use your emergency fund, is the situation of necessity

Of course, if you have to, you should do it. However, you might want to pay attention to what necessity really means: if you can as well do without, then you probably should not spend your savings on that.

Patiently manage your emergency fund

Whenever you have the impression that you should use your emergency fund, ask yourself if the situation really is urgent. If the answer is Yes, there is no time to waste. 

However, take time and be patient in managing different situations as, if there is no need to spend the money, than better not do it. Remember, it took time to build up that fund, no matter how big or small it eventually is.