why you need an emergency fund (and how to start one today)
hey bestie!
Real talk – did you know that 1 in 4 Canadians can't cover a surprise $500 expense?¹ Trust me, I've been there, living paycheque to paycheque, with my credit card basically acting as my emergency plan (spoiler alert: not the best strategy!). Let’s walk through why and how to build an emergency fund that’ll have your back when life throws those unexpected curveballs our way (because you know life always does!).
let's get real about emergency funds
Think about it – your car makes a weird noise, your tooth starts throbbing, or your laptop decides it's time for an eternal nap. These things never happen when it's convenient, right? That's why having an emergency fund is like having a bestie who's always there to catch you when you stumble. No judgment, just support when you need it most!
how much should you stuff away?
You might have heard that you need 3-6 months' worth of expenses saved up. If your monthly expenses are around $2,000, that’s about $6,000 to $12,000 in your emergency fund envelope. Deep breath, bestie! Here's the thing – you don’t need to stuff it all at once. Starting with even a few hundred dollars can be a game-changer. Remember, every dollar you save is a dollar looking out for future you!
Pro Tip: In our app, you can create a dedicated savings envelope for your emergency fund. Just set a goal amount and a target date, and the app will automatically suggest how much to add each time you budget. It takes the guesswork out of saving and keeps you on track toward saving your emergency fund!
let's make this happen together!
Here's how we're going to crush this emergency fund goal:
1. start small (like, really small!)
- set a starter goal of $500 and increase your goal as you reach it
- stuff even $20 per paycheque into your emergency envelope
- remember: small steps lead to big wins!
2. make it non-negotiable
- treat it like your favourite streaming subscription
- stuff this envelope before any others
- you've got this, bestie!
3. automate your stuffing
- set up automatic transfers on payday
- start with whatever amount feels doable in your budget
- watch your safety net grow!
where should you keep your emergency stash?
Bestie tip: open a separate high-interest savings account just for emergencies. It needs to be easy to access (because emergencies don’t make appointments!) but not connected to your daily spending account (because concert tickets aren’t exactly an emergency, even if it feels like it! 😉).
the "is this really an emergency?" checklist
before unstuffing your emergency envelope, ask yourself:
- is this a genuine "oh no!" moment?
- could I fit this into my regular budget with a little creativity?
- will using this money help me avoid credit card stress?
keeping it real: maintaining your emergency fund
once you've built your safety net:
- if you need to use it, make restuffing it a top priority
- keep your hands off it for non-emergencies (by having it in a separate account, it’s outta sight, outta mind!)
- celebrate every win along the way – you're crushing it!
let’s do this!
Bestie, I know saving isn’t exactly thrilling, but you know what is? That amazing feeling when you can handle whatever life throws at you without breaking a sweat! Start small, keep stuffing consistently, and watch your confidence grow along with your savings.
Reference: 1. [Statistics Canada, February 2023]
Hey, I’m Sasha, one half of the Budget Bestie team. After paying off $35k+ of debt with cash stuffing, I came up with the idea for this app to make cash stuffing simpler—without having to carry cash. Our app lets you budget on your own schedule and gives you full control of your money. Whether you’re just starting out or a seasoned cash stuffer, I’m here to share tips and tools that’ll make cash stuffing easier for you. Let’s do this, bestie!
