Not Having an Emergency Fund Is the Emergency

By: Jamie Hunt

I once overheard someone say they didn’t have an emergency fund. Without thinking, I replied:

“Not having an emergency fund is an emergency.”

It might sound a little dramatic, but it’s true. Life has a way of throwing curveballs—car repairs, medical bills, job changes, even a leaky roof on a rainy day. When any one of these things happens, life can quickly turn into a crisis if you don’t have the cash set aside.

That’s the whole point of an emergency fund!

Having an Emergency Fund keeps life from becoming a crisis.

It’s not about building wealth or chasing returns. It’s about giving yourself breathing room when life doesn’t go as planned.

Think of it like this:

• A flat tire is frustrating.
• A flat tire without the money to fix it feels like a disaster.

The same problem looks completely different when you have the resources to handle it.

And here’s the important part:

If you don’t have an emergency fund yet, that’s your emergency.

Until you’ve got one in place, every extra dollar should be treated with purpose. That means holding back on the “nice-to-haves”—like eating out, upgrading your phone, or splurging on little luxuries—until you’ve built that financial safety net. It’s not about denying yourself forever, it’s about giving yourself the foundation to enjoy those things without guilt or worry later on.

An emergency fund has the power to turn a crisis into an inconvenience. Instead of scrambling, stressing, or putting expenses on a high-interest credit card or borrowing from your 401(k), you’re able to calmly say, “I’ve got this.” That peace of mind is worth as much as the money itself!

So, how much do you need?

A good starting point is $1,000 for small bumps in the road. From there, aim for three to six months of living expenses. That might sound like a lot, but you don’t need to fund it all at once. Consistent savings beats speed—set aside what you can and let it grow.

Here’s the truth:

You can’t predict when life will test you, but you can prepare for it. An emergency fund is your safety net, your buffer, and your reminder that you’re in control even when the unexpected shows up.

Because when you have an emergency fund, the emergencies of life don’t have to become emergencies in your life.

This article is provided for informational purposes only. It is always best to counsel with your financial advisor or your tax professional to ensure that you make the best decision for your circumstances.