A strange thing happened this weekend.
I woke up on Saturday morning to our backyard tree completely uprooted. It was jarring to see it that way after seeing it standing tall for the last five years.”How could this happen?” I asked Philip. He pointed out that the last year had been unusually rainy and as a result, the tree had doubled in size just in the last twelve months. Then it began to make sense. The tree had outgrown what its roots could support.
In our world, those “roots” are your emergency fund. An emergency fund is a pile of cash specifically set aside for large, unexpected expenses. And without a doubt, it is the most overlooked piece of the financial puzzle.
That new “zero interest” monthly payment, that pair of expensive jeans, that car upgrade you don’t need…they’re all limbs on your tree. Now, having lots of great things is not bad. But this tree is teaching us, if you add things onto a weak foundation, it will inevitably come down. Our financial tree tumbled down around eight years ago. In 2008, a storm of taxes nearly wiped us out. It was totally our fault for failing to plan properly. Thankfully, we had a baby emergency fund, so we did not have to go into debt. But it took everything we had. It was terrifying, but we learned our lesson.
Is building an emergency fund the most fun or sexiest thing you can do with your money? No. You can’t exactly brag about it on Facebook. But you know what is sexy? Confidence. I’m not talking outer confidence, the kind that shoes or a car can give you. I’m talking capital C – Confidence. The type that lives in your core, in your gut. This is the confidence that allows you to grow in ways most people can’t. For example:
– I left my day job of 4 years without worry, because of my emergency fund.
– We had a client decide to finally travel the world without an end date, because of her emergency fund.
– Another couple paid for an expensive surgery for a beloved pet without going into debt, because of their emergency fund.
– A person this very morning told me how she weathered a layoff in a city she had just moved to, because of her emergency fund.
Have I convinced you yet?
Now, in order to work properly, the emergency fund has to fit you. They’re not “one size fits all”. And you don’t have to save into them forever! They actually have an end point. So how much do YOU need? Respond to this email, we will ask you a few important questions and you’ll get your answer. For free.
We wish you all a very merry Christmas! It is a privilege to get to share our hearts with you.