You are late for that important meeting, your tights have a ladder, your hand slips and you get lipstick all over your favourite white blouse. As you rush out, your skirt catches in the door! Hearing that loud tear, you quickly swivel back and *snap*… there goes your heel…
This is Murphy’s Law at its finest. It is given a Murphy will strike when you are least prepared.
Whilst you cannot predict everything that can possibly go wrong, you can create an anti-Murphy defence. The best and simplest buffer is your emergency plan. Save 3 to 6 months of living expenses and you have armed yourself against a big Murphy attack.
Your emergency fund is literally a life saver, giving you the comfort, freedom and choice to live on your terms.
The comfort of knowing you have defence against the Murphy attack
When you are getting your money house in order, Murphy will hit. The washing machine will break, the car will need repairs, or some unforeseen expense will pop up – surprise! This can derail your carefully laid money plans. Without an emergency fund you are likely to have to turn to your credit card or other debt, resulting in heading further down the debt hole and putting a dent in your plans.
By creating an emergency fund you have not only created a buffer to ride the challenges Murphy throws your way, you have also given yourself the confidence to build your financial vision, knowing that no matter what happens, you can take care of yourself.
The certainty of having a backdrop gives you the security to be daring
Knowing you have the safety of your emergency fund can fuel your ambitions to start the new business, change careers or take a sabbatical to spend time with your loved ones. Operating from a place of abundance opens you to new creativity and ideas.
The confidence of knowing you did it
Growing an emergency fund is a challenge. It is easy to procrastinate or make excuses as to why Murphy will not happen to you. It is not easy to put the cash away for something that does not seem to offer a direct reward for doing so. The discipline is to keep putting your cash in an accessible account and leaving it there is a test of character.
The sense of achievement when getting it done, gives you the certainty, confidence and evidence of your money management abilities. This opens you up to the possibility of what else you could achieve if you put your mind to it.
Have you ever had a situation that needed your emergency fund?