EP 038: How Big is Your Emergency Fund? And Do You Know How to Use It?

I’m back on the show notes after moving house.

( Big thank you to Grant for picking up the slack! )

A few people in the community have asked me why I moved house.

So, I wanted to share my reasons here as it’s relevant for business owners.

Reason 1 – Kinder is Jack’s first “Mastermind.”
I’m a big believer that you become who you spend time with.

It hit me like a shovel to the face that I’m currently deciding who Jack spends time with and the environment he is in.

However, when I asked myself the tough question:
“Am I giving Jack the best opportunity I can?”

The answer was a sobering: … no
I was settling for less.

I take being the provider of my family very seriously, and I know many of you who follow this podcast also do, and so I just couldn’t let this slide without a change.

Reason 2 – Significant business opportunity
As I have been mentioning in previous episodes…
There are so many business opportunities out there if you just pay attention.

An exciting and big opportunity has come up for me.
The catch is… I need to be closer to Melbourne CBD to seize it.

Many people would not be willing to move house.

However, sometimes we have to be willing to do what others want to get the results we want.

It may or may not be related to future events for full stack business owners…

But, more on that another time 😉

This week, we are going to be discussing a critical topic for business owners.
(especially at this time)

Emergency funds.

How big should they be?
When should you use them?

Prefer to listen or watch?
You can hear Grant and I discuss these topics in more detail on the podcast.
Click here to tune in: https://linktr.ee/businessandinvestingcom

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Emergency funds.

I won’t insult you by explaining what an emergency fund is, as I think that if you are listening to this episode, you are well aware.

What I find interesting atm.

Many business owners are only building or building up an emergency fund now while things are a bit uncertain.

Not in the good times.

Part of being a full-stack business owner means being financially responsible.
Build your emergency fund in the good times when you don’t need it!

I’m going to pass on a set of emergency fund rules a mentor gave to me.

– 12 months of living expenses
– 3 months of business expenses
– Tax money set aside in a separate account and up to date
– No credit card debt but have a credit card available 

If you have any investments like property, it’s worth keeping 6-12 month rent set aside just in case there is a long vacancy or significant repair required.
(depending on the risk level of investment)

I remember the first time I heard these emergency fund rules I thought it was extreme.
But…

I’m so glad I took them on as I sleep VERY well at night.

It is very reassuring to know I don’t have to panic if an emergency hits.
I have the time and resources to make good decisions instead of desperate ones.

Honestly, I think it’s worth listening to this episode, as Grant also makes some great points about other ways to reduce risk.

Then make sure you are subscribed to the podcast: https://linktr.ee/fullstackbusinessowner

DISCLAIMER:
All information we share is NOT financial or investment advice and is purely intended for entertainment and educational purposes only. Always seek professional advice before acting on any financial decision.