When You Have an Emergency Fund, You Have the Power

When you live paycheck to paycheck , you usually feel at the mercy of your employer. If you are lucky enough to have an honest, understanding employer, this may not be so bad. However, if your employer is a jerk or you just don’t like your job, you probably feel powerless and stuck. Here’s how an emergency fund can help.

In general terms, an emergency fund is a treasure trove of savings that can be used during a financial crisis. It’s a simple concept, but a powerful first step to feeling in control of your finances. Keith Dor of the Cashville Skyline finance blog shares her own story of being stuck in a job she didn’t like. She described how the Emergency Relief Fund gave the impetus for her career change:

Lack of savings made me feel especially powerless.

I felt like a failure because I had so little to show through the years of hard work. I couldn’t afford to take risks in a lower paying job.

So I vowed to take back control – to cut my spending as much as possible and start building my own emergency fund.

Over time, she learned to economize and eventually felt strong enough to quit her job and move on to a new one. It makes sense. Money gives you opportunities, and options make you feel like you have choices and power over your destiny. This is how it is expressed in Living Rich Cheaply:

Employees who live paycheck to paycheck and have a lot of debt will put up with working in a hostile environment because they know that losing or being fired will lead to financial disaster. Accumulating money will give you the strength and courage to stand up for yourself … Knowing that you have financial flexibility and that you will be fine without a stable salary for a while will give you the freedom and strength to face the potential consequences of being fired from work. While it may still not be easy, due to the lack of money, it is nearly impossible.

Even if you’re in debt and struggling , it’s important to have a backup fund . Not only will it help you avoid debt traps during particularly tough times, but it will also make you feel a little stronger. An emergency fund won’t solve all of your problems overnight, but it is one step towards feeling in control. A sense of control is essential when it comes to managing your money.

How My Emergency Fund Helped Me Career Change | Cashville Skyline


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