286. Emergency funds 101: how much you need and where to keep it (part 1)

Emergency funds might not be the most thrilling topic in personal finance, but they're the foundation everything else sits on. In this first of two back-to-back episodes, Tash and Ana cover the 101: what actually counts as an emergency, how much you need, and where to keep it. Whether you're starting with your first $1,000 or wondering if your buffer is big enough, this is the place to start. (Already sorted? The part 2 drops on Thursday.)

In this episode we'll discuss:

💸 What counts as an emergency (job loss, car repairs, vet bills, last-minute flights home) and what definitely doesn't (Christmas comes every year — plan for it)

💸 The maths of skipping the buffer: why a $3,000 car repair on a 20% credit card can undo an investment returning 7%, and how bad expenses love arriving all at once

💸 How to calculate your number: add up essential monthly expenses and multiply by three to six — a worked example where $3,500 a month means a fund of $10,500 to $21,000

💸 When to lean towards three months (stable job, no dependents, family to fall back on) versus six or more (sole income earner, self-employed with lumpy income, kids, or planned parental leave)

💸 Where to keep it: high interest savings or your offset — not term deposits, not shares, and watch out for honeymoon rates and hoop-jumping bonus interest conditions

💸 Tash's $20K "I just like the look of it" approach versus Ana's full year of expenses, and why the emotional side of the number matters as much as the maths

An emergency fund isn't optional, but it doesn't have to be overwhelming either — start with $1,000 and build from there. And if you have to dip into it? That's literally what it's for. Use it, feel zero guilt, and top it back up.

Happy EOFY from pearler! Sign up in July using the code GETRICHSLOW for 12 months worth of free trades 💸

And for existing customers, sign up to a new pearler product and you'll get 12 months worth of free trades too! 💸

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Disclaimer Any advice is general and does not consider your financial situation needs, or objectives, so consider whether it’s appropriate for you. You should also consider seeking professional advice before making any financial decision.

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