Why an Emergency Fund Won't Give You Peace of Mind (2024)

Put your guns down, no need to shoot me. You have to at least hear me out. Okay?

So, listen— I rarely get personal around these parts, but today I need to keep it real with you. All the way one-hundred, so to speak.

Many of you would argue me down because some of you are unfortunately living without an emergency fund, and you damn sure would have some peace of mind if you had 3 to 6 months of expenses sitting in the bank.

Don’t get me wrong, I hear you and I used to feel the same way. At the beginning of this year, I slept easy knowing I’d consistently set aside money in the event of an emergency. You know things like job loss, medical emergencies, ish that breaks down. Stuff like that.

But then I got fired from my job. I already hashed that story out hereso I won’t get into it again. I didn’t wincethe day I got the ax. I was good (or Gucci as the younger millennials would say).

I had enough money put away and I didn’t have to rush to find work again. It made the decision even easier when I told my husband I was done with the 9 to 5 life. I was finally ready to take entrepreneurship on like the boss I always knew I could be.

But I’ve experienced many revelations as of late.

My peace of mind had nothing to do with the money in the bank. It helped — I definitely won’t lie and say it didn’t. But if you think having a big emergency fund is going to ease your worries when that emergency finally comes a calling…tsk, tsk, tsk…you’re in for a shock.

Why?

Well, money saved for a rainy day is nothing but good ole financial security. And yes, financial security is nice, but what happens when you’re down to your last thousand bucks and you haven’t found another job yet?

Or when that medical emergency you thought would wrap itself up in six to eight weeks lasts a lot longer? Even worse, what about those credit card offers that start looking mighty appealing because you just don’t know how you’re going to make it another month?

Where’s your peace of mind during all of that?

When it’s all said and done, money in the bank is just money in the bank. If you act as if life depends on it, then it certainly will. The money is just a means to protect yourself during the inevitable, but that security won’t last.

Fortunately, right before I got cut from my 9 to 5, I began meditating and working on my money mindset. And trust me when I say this— I had a whole lottawork to do.

See, when I had a job, all I could think about was saving. Then I spent the rest of my time worrying about when I was going to have to use it. I had no peace of mind then all because I was scared of running out of money.

Thankfully, I got some sense and learned that worrying about the things that I didn’t want was counterproductive and it was actually attracting the unwanted event (running out of money) to me.

With a lot of mindset work and shifts, I have peace of mind despite not having that peace before.

So what mindset shifts needed to occur, you might ask?

Well, I started viewing money as something that is meant to be spent! Duh, I mean it’s obvious for many of us. Some of you don’t have any problem with spending money. Matter of fact, your only problem might be that you can’t save because of your spending problem.

But me…well, I struggled with spending money on things that I need or even wanted because I suffered from a lack mentality that believed once the money’s gone, it’s gone forever. This is simply not true.

What’s the purpose of saving money if you’re not going to use it for its intended purpose? What’s the point of saving for an emergency when you’re still going to lay awake at night worrying about when it’s all going to be gone?

Why do you think there is this whole Christian principle about giving? You know, the whole give and you shall receive thing.

Money is meant to circulate. You earn, you spend, and you give. Rinse and repeat.

Even in the midst of an emergency, focusing on your funds running out will not help you get money back any faster. It really is a struggle and for some of you, it will always be until you shift into an abundance mindset.

So, what’s the deal then?

If financial security only feels good when you’re employed, how do you maintain that same peace of mind when ish hits the fan? How do you focus on the desired outcome (not the unwanted) when you’ve got bills to pay and your bank account is starting to chuckle at you?

It’s simple.

You come to an understanding that you’ve prepared for whatever mountain you’re facing. You’ve stashed the coins and you’re equipped with everything you need to climb that mountain.

Don’t stop halfway up the mountain and start panicking because you’ve used half of your coins to get there. That’s when you need to start focusing on your plan so you’ll know what to do when you’ve finally reached the other side. (By the way, it would be a good idea to create your “what’s next plan” before you ever reach the mountain. Are we clear?)

See, lack of vision about what’s next is the #1 thing that’s going to steal your peace of mind. But only if you allow it!

If I was only concerned about when I was going to run out of money, I wouldn’t have been able to prepare myself for what was coming. I’d be dreading my bank account balance instead of leveling up to put myself in a better position than I was before.

When I finally get to the other side of the mountain, I’ll have several things working for me that I didn’t have when I was employed.

I will have a higher income, better work-life, clients, a brand, a business plan, a blog — hell, I’ll have a whole lotta stuff. When I was working the 9 to 5, I only had a blog, some coins, and no energy to figure out how to go about my business.

I had no peace of mind and I was struggling to see my way through because I was doing what I had been taught to do— go to school, get a good job, and be grateful.

When I logged out of my work computer for the last time, I felt an unnecessary weight lift off my shoulders. I no longer had to do what I was told. I could do whatever the hell I wanted to do and be better for it.

Instead of crying, I tuned into myself and looked beyond the financial security I’d built. That’s when I discovered if I really wanted true peace of mind, I needed to start living life in a way where I didn’t depend on an emergency fund to help me sleep easy at night. I wanted to sleep easy for other reasons and none of them have anything to do with money.

So, I’ve basically gone on and on about this because I want you to see beyond the money. Cast the true desires of your heart out into the universe, create a plan to get whatever it is you want, and stay in tune with your vision at all times. The money will come. It’s you that’s creating the setbacks and stopping it from flowing to you!

Once you tap into this mindset, this will be the best peace of mind you’ll ever have! And when it’s finally time to putthat emergency fund to work, not even the mountain standing between you and the life you truly want to experience will be able to take away your peace of mind.

But you know…dont listen to me. Some of us have to live it to truly understand.