Unlocking Abundance

Key Takeaways

• Watching your savings balance drop can sting, but that discomfort is simply proof of how hard you worked to build it. That’s not a setback, that’s a win.
• Rebuilding your emergency fund is part of the cycle, not a fresh start from zero. It’s a financial tool that ebbs and flows with life. Give yourself grace for having the money to spend, then put your simple plan in place to grow it back.

When Spending Your Own Money Freaks You Out

I get it. We work so hard to create our own financial security that when the time (inevitably) comes that we must use our own “emergency fund”, it can feel less than desirable. I recently had my own oh, shit season where unforeseen car, body and home expenses all collided at once. The money I’d painstakingly saved over time took a major hit. And it hurt.

It hurts because money is so personal. It’s that security blanket that we’ve created for ourselves. It felt so gratifying watching the savings increase, and so disappointing to have to spend any of it.

And, none of us should have to feel that.

The fact is, you planned for this. You took all of this care and intention to put money away for a very specific cause.

The un-foreseen thing happened and you knew exactly where the money was stashed, and how to access it.

And yet, somehow, it still hurts to watch those balances fall. Ugh.

This is human; this in normal. We can talk ourselves back off of the ledge of disappointment and even turn towards pride.

Accepting that Life is Going to Life

Let’s wrap our head’s around the idea that these accounts are created to be cyclical–and how using them that way is by both design and intention.

This is the nature of having an emergency fund; we save, we spend, we save, we spend, and repeat.

The next time spending down your own hard-earned savings freaks you out, go and look at your account. Gain clarity on the situation by using the following statements:

“In this specific savings account, I intend to use the money for X.”

Recognize this is a cyclical account. You can build your savings back up; you’ve done it before and you’ll do it again.

“I know that the money in this account is accessible to me when I need it, and I have a plan in place to build it back up.”

Identify your plan to keep this account revolving. This could be as simple as an automatic transfer to your emergency fund a couple times a month, or in line with when you get paid. Your employer may even be able to facilitate this for you–thus having less to manage on your part!

“My plan to fund this account looks like…”

Another quick antidote to alleviating most (money) stress is cultivating gratitude. Gratitude can snap you into the present moment and flood you with the chemicals that make navigating even the most intense situations a little bit easier.

How grateful do you feel towards having extra cash stashed away, and how often are you recognizing that?

“Thank goodness I set this money aside for future me; I’m really proud of myself for taking such care and saving me in a bind.”

How good would it feel to experience a little relief each time you have to dip into your emergency fund from now on?

FAQ’s

• What are the less obvious reasons it’s important to have an Emergency Fund?

An emergency fund keeps you from turning to credit cards. Credit cards can carry high interest rates that can significantly cost you more money if you don’t pay them off by the due date. Not only will you be spending more on the item than you would have had you used your own cash, your credit score could potentially take a hit and that could expose you to higher interest and payment options the next time you’re looking to borrow on a bigger-ticket item like a car or a home.

• Where should I keep cash for emergencies and how much?

Keep cash available in a high-interest bearing account, like a High Yield Savings Account. If where you’re already banking doesn’t offer a savings account with an interest rate at 3% or greater, you can use an online bank like Ally. Wherever you keep your cash, make sure it’s accessible (within a matter of days) and FDIC insured. Start small! Even building up a $1000 over time is a great start. Eventually, aim to be able to sustain yourself for at least 3 months worth of your most necessary expenses.

Looking to feel less freaked-out about money? Schedule a free thirty minute session with me now!