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Permission To Use Your Emergency Fund


Having an emergency fund is all the rage these days, but knowing how to effectively use one, and the reasons for its existence are still somewhat perplexing. 

If you have already made the decision to start your fund, or you have had one for a while then congratulations. It is an important financial milestone to reach and shows a great deal of economic prudence for you and your family.

The question then arises of when is it acceptable to use your emergency fund? 

There are so many uncertainties in life, and dipping into any form of savings often feels inappropriate – especially if you have amassed any significant cash balance.

But remember, your emergency fund is there for a specific reason – to alleviate financial pressures when you experience an unforeseen event – namely an emergency. 

So let us now look at the 5 main categories you should consider tapping your emergency fund for – and give yourself permission to take advantage of this incredibly useful tool. 


This is the single biggest reason an emergency fund exists. After all, with a steady and consistent income most emergency’s can be covered with income alone. However, when the very source of your financial stability is shaken, you will need immediate support.

In recent months, the world has seen unbelievable job uncertainty for millions of people. Many have been temporally furloughed, made redundant or worst, lost their jobs entirely. Therefore, accessing your emergency fund as a stop gap between job loss and re-employment is totally legitimate. 

Most experts recommend an emergency fund the size of 6 months worth of income. This should give you ample opportunity to look for new employment and rectify your financial situation. 

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