A Personal or Family Emergency Fund

“Building an emergency fund and having income protection cover are two key strategies that can provide you and your loved ones with a financial safety net.” Unknown.

Young Family with an Emergency Fund

Up front I admit to never having an emergency fund, or one labelled as such. The closest I’ve come to having one, is a fund I have to invest in shares. It is a Sharesies account that I use for emergencies. So far, the account has worked for me when family emergencies arise. I only invest in two companies whose shares have been stable for years but still show growth. When I have to sell shares it’s normally a two or three day turn around before I get access to the funds. Every week a fixed amount goes into my Sharesies account. I let the amount build until it gets to a level where I can reinvest into one or both companies. This system works for me, it’s not instantly accessible, giving me time to consider whether a withdrawal is a want or a need.

Creating an emergency fund is a powerful financial move individuals or families can make. It’s not just about saving money it’s about building financial resilience.

Benefits of Budgeting for an Emergency Fund

• Financial Security

  It acts as a buffer against unexpected expenses like medical bills, car repairs, or job loss, helping you avoid debt or dipping into long-term savings.

• Peace of Mind

  Knowing you have a safety net reduces stress and anxiety, allowing you to make decisions with clarity rather than panic.

• Avoiding High-Interest Debt

  It prevents reliance on credit cards or payday loans during emergencies, which can spiral into long-term financial strain. In our community emergencies such as a funeral places huge financial stress on families. Without an emergency fund the only option to quick cash is to borrow from high interest lenders. The long-term effect from such borrowing is the loss of assets, or children having to go without food or clothing because money is used to repay loans.

• Protecting Investments & Retirement

  You won’t need to cash out investments or borrow from retirement accounts, preserving your future financial goals.

• Improved Financial Discipline

  Building and maintaining the emergency fund encourages budgeting habits and long-term financial planning.

Recommended Emergency Fund

Household Type	Emergency Fund Goal
Single, stable income	3 months of essential living expenses
Dual-income household	3–6 months of expenses
Single-income family	6 months or more
Irregular income or self-employed	6–12 months of expenses

• Essentials include rent/mortgage, utilities, groceries, insurance, transportation.

• Starting small is okay: Even $500–$1,000 can cover minor emergencies like car repairs or medical co-pays.

  
  

Tips to Build Your Fund

• Automate savings transfers to a separate account.

• Use windfalls (tax refunds, bonuses) to boost the fund.

• Cut discretionary spending temporarily to accelerate growth.

• Keep it liquid—use a high-yield savings account for easy access.

  
  

Action

Devise a plan to build an emergency fund that suits your own circumstances. If you need to see a budget advisor to help you get started, do so. There are many in the community who will gladly assist you find financial independence; the Citizens Advice Bureau is one such organization. Do not hesitate – start now to build your emergency fund.