Emergency Funds: The One Safety Net Everyone Needs
What if the fridge breaks, the car won’t start, or a client disappears without paying?
That gut-sinking feeling when something unexpected hits—whether it’s in your personal life or business—can quickly spiral into stress, panic, or even debt. And yet, most people are walking a financial tightrope with zero safety net beneath them.
This post is your roadmap to fix that. We’re breaking down emergency funds: why they matter so much more than you think, what kinds you actually need (spoiler: yes, plural), and how to build one without giving up all joy in life. You’ll learn the smart, clear, and doable way to prepare, so life’s surprises don’t knock you down.
Let’s talk about peace of mind, not panic.
There’s a big myth that building an emergency fund means depriving yourself, cutting every treat, and saying goodbye to all fun. Nope. This isn’t about quitting your favorite latte (although you could, sure). It’s about planning with purpose and having your back when life gets messy.
Start by understanding: there’s more than one emergency fund.
You need at least two kinds of buffers:
1️⃣
The “Oops” Fund
This is your go-to for random unexpected costs: the car needs a new battery, your laptop charger dies, your dishwasher floods the kitchen. These annoyances happen to everyone, and if you don’t have money set aside for them, you’ll end up scrambling—and possibly using credit cards you’ll regret later.
A good target here? Start with 500 to 1,000 EUR/USD, then build it up to 1,500–2,000 over time. This fund is like having a fire extinguisher at home: small but mighty.
2️⃣
The “Big Life Interruption” Fund
This is the one people often forget or push aside. What if you lose your job? Your biggest client bails? A pandemic shuts down business overnight (hello, 2020 flashbacks)?
For these major disruptions, you need 3 to 6 months of essential expenses. But the number you choose will depend on your situation:
If you live in a country with government unemployment support, like many in Europe, 3 months may be enough.
If you’re in a country with little or no safety net, like the US, aim for 6 months or more.
Think of this fund as the bridge that lets you move through uncertain times without falling apart.
Emergency funds aren’t just personal ➡️ They’re critical for your business too.
Freelancers, small biz owners, creative entrepreneurs, this one’s for you!
Your business should have its own mini emergency fund. Why? Because revenue fluctuates, clients ghost, and unexpected expenses show up uninvited (broken printer, software crash, tax bill you didn’t see coming, and a long list of etc. right?).
Set aside 1 to 3 months of basic business expenses in a separate account. That way, if income slows down, your business can keep running while you breathe and strategize.
So… how do you actually save this money?
Here’s the part where you’re not just cutting lattes and joy. Instead, get smart:
➡️ Automate it. Set up a small monthly transfer to a savings account, even if it’s just 25 or 50. Out of sight, out of mind—yet steadily growing.
➡️ Use extra cash wisely. Tax refunds, side hustle income, or that gift from Grandma? Toss a portion into your fund.
➡️ Trim what doesn’t serve you. It’s not about cutting joy, it’s about cutting waste. Subscriptions you don’t really use? Services you forgot to cancel? Redirect that money.
⭐️ Pro tip: Keep your emergency fund in a high-yield savings account—easily accessible, but not too accessible. You want to think twice before dipping in because while there, your money keeps growing.
Make it stand out
Life throws curveballs; you need to be ready.
And not just for yourself, but for your family, your business, and your future self.
Building this cushion isn’t a luxury—it’s a non-negotiable.
It’s not dramatic, it’s smart and it’s powerful. And yes, you can start today even with a small amount. If your budget is really tight, give yourself permission to go slower—but don’t forget about it entirely! Progress beats perfection every single time, and even small steps build a safety net over time.
So go on—build that buffer. You’ll never regret having it, and your future self will thank you.
Take Action! ⏭️ Start planning and building your emergency fund now, don’t wait for the unexpected to catch you unprepared. Think about one small thing you can do this week: Checking your streaming subscriptions? Cancelling that app you never use? Selling something you’ve had in the closet for ages? Even rounding up your grocery spending and transferring the difference can get things going. Small actions count, and they build momentum!
And if you want to learn more about creating systems that bring clarity to your finances and life, come find me on Instagram @martafores_coach and subscribe below ⤵️ for new blog posts, free templates, offers and more.
If you have any questions or would like to share your thoughts on this post, feel free to contact me at coach@martafores.com.
