🤓 CPA helping moms:📈 Invest confidently🚸 Raise money-savvy kids 🤑 👉 My FREE Money Challenge helps you accomplish the MOST important financial tasks step-by-step!
The Secret to Investing CONFIDENTLY 🚨 . . .
Hey Reader,
Time to check in on your finances!
Consider this your monthly reminder to update your Net Worth -- an easy way to track your financial progress. 📈
Need the Money Meeting Agenda?
| DOWNLOAD |
Money Fit Challenge of the Month: EMERGENCY FUND
Most people understand the obvious purpose of an emergency fund because it's right there in the name: Emergencies. (Notice it's not called the "Kitchen Renovation Fund" . . . you should be saving up for large savings goals separately -- we'll talk about that in another challenge).
And it's true. Having 3-6 months' worth of cash savings will PROTECT you from going into debt or liquidating (aka selling) investments prematurely, such as a retirement fund (which costs you a FORTUNE in lost growth and ugly penalties).
BUT! Here's why Emergency Funds are REALLY amazing . . .
They are the secret to INVESTING with CONFIDENCE!!! 📈
Long-term investing is the KEY to building long-term wealth. But it doesn't work until you actually withdraw cash from your bank account and put it into a long-term investment (which are often volatile). But few people are maxing out their tax-advantaged retirement options! Why? Because they're nervous about putting their money into a restricted asset in case something comes up. And they're right! Things *WILL* come up. That's what the emergency fund is for: allowing you to invest with more CONFIDENCE.
MONEY FIT CHALLENGE #4: Calculate how much you need for a Full Emergency Fund
Full Emergency Fund = Monthly spending x 3-6 months
"But that's SO much cash! And saving up for it will take SO LONG!"
I answer that question, plus I discuss how much, what type of account, inflation, etc. in THIS ARTICLE. If you read it and still have questions, feel free to shoot me a message!
P.s. Funny story.
I wrote my article about the importance of Emergency Funds in late February 2020, posted on March 12, 2020. Back then, I spent so much energy trying to convince people that bad things happen, so PLEASE get prepared. Guess what. I don't have to convince people anymore. Check out what happened to the SEARCH VOLUME on the term "Emergency Fund" almost overnight:
Always searching for reasons to create a spreadsheet,
Lisa Schader, CPA @MoneyFitMoms 🤓💸
🤓 CPA helping moms:📈 Invest confidently🚸 Raise money-savvy kids 🤑 👉 My FREE Money Challenge helps you accomplish the MOST important financial tasks step-by-step!
Hey Reader, If things stay on track, my husband and I could be financially independent (FI) as soon as summer 2027(meaning: we could cover our living expenses with our investments alone, making work optional). That still feels wild to write — and I want to be clear about something: This didn’t happen quickly. We’ve been working really hard toward this goal since we took our first investing class back in 2008. It’s been almost 20 years of showing up, learning, resetting mistakes, and doing the...
Hey Reader, For years, we paid our kids allowance the old-school way — cash envelopes and all. 💵 It worked beautifully when they were little. They needed to see the money to understand it. But now my youngest is turning nine… and I realized we were ready for a change. The world runs on debit cards and direct deposits, not crumpled bills in a drawer. So we finally went digital. 🙌 We’ve been using this app for a while now, and it’s been a game-changer: 🚫 Has no monthly fees 💸 Sends allowance...
Hey Reader, There’s a financial mystery I’ve spent years trying to solve. Maybe you have too. 🔎 What’s the best investment? Stocks? Real estate? Index funds? Turns out, the greatest investment isn’t in the market at all. It’s in memories and relationships. 🥰 They compound, too! The sooner you have an experience and/or build a relationship, the more years you get to spend enjoying it. ❤️🥹 But here’s where the mystery deepens… 🔎 Investing as much as possible sounds like a great idea, but what...