I used to quietly roll my eyes whenever someone talked about Emergency Fund. I mean sure, I’ll just pull a thousand dollars out of nowhere to set up an Emergency Fund while trying to keep up with diapers, and the surprise expenses that pop up daily when you’ve got a little one underfoot.
It felt totally out of reach.
Then life hit us hard. My father-in-law was visiting us in Canada to spend time with our son when he suddenly fell ill. One night in the hospital. Just one. The bill? Over $15,000. I still remember crying that night, staring at the ceiling, wondering how we were going to pay it. We didn’t have the savings and we weren’t prepared.
That moment changed everything for us. Even with a background in finance, I’ll be honest, life and motherhood can mess with your money plans. But I knew then, we needed a safety net and I was going to build one, no matter what it took.
Let’s Break It Down…
Why Set Up An Emergency Fund – and What It Really Is?
This gets mixed up all the time and hey, I used to confuse it too.
An emergency fund is money set aside specifically for unplanned, urgent expenses. It’s not your vacation fund, not your future home deposit, and definitely not the money you’ve set aside for fun stuff or big plans. This fund is for when life throws you a curveball you didn’t see coming.
Savings = for things you plan and want.
Emergency Fund = for things you don’t want but need to handle.
Think major car repair, dental or medical emergencies, or the dreaded “job restructure” talk. These are the moments where a credit card shouldn’t be your first line of defence.
Where I Keep Ours (and Why We Use Two Accounts)
So here’s what we do now:
We have two accounts dedicated just for emergencies.
One is a regular joint savings account, where my husband and I add money every single month. It’s our short-term emergency fund, a “holding tank”. Once that account hits $1,000, we sweep it into a Tax-Free Savings Account (TFSA) where it’s invested. This way, our money isn’t just sitting there, it’s working quietly in the background.
TFSA doesn’t have a debit card, and it’s not even at the same bank as our day-today accounts. It’s out of sight, out of temptation and that makes a big difference.
My First Big Mistake? Thinking I Needed $1,000 Overnight
You’ve probably seen that advice: “Save $1,000 fast!”
Sure, it’s a great milestone. But let’s be real, when you’re juggling kids, bills, and your grocery budget is already on life support, it feels impossible.
So I made it smaller. I said, “Okay, Sarala. Just save $100.”
And when I got there? I aimed for $250. Then $500.
Tiny wins kept me going. You don’t need a big leap, you need momentum.
Where I Found the Money (Without Drastic Sacrifices)
This took some digging. I pulled up our budget and found subscriptions we didn’t need: Uber One. That gave us back $10 a month—$120 a year just like that.
Then, I added this little budget trick: I round up every purchase to the nearest $5, and at the end of the week, I move the difference into our emergency fund. Bought groceries for $43.20? I record it as $45 and move the $1.80. Sounds small, but over time, it adds up fast.
Any time we got a tax refund or even a tiny grocery rebate, I funnelled it straight into the emergency fund, before I could glance at a HomeSense decor aisle or get tempted by a late-night Temu scroll.
Automation: Easiest Way to Set Up An Emergency Fund
This one’s not exciting, but it works.
My husband and I set up a weekly automatic transfer, just $20 each from our checking accounts into our joint savings. It’s small enough not to feel stressful, but steady enough to actually build momentum.
It’s like paying a bill to our future selves. And future us is always thankful.
The Bonus I Didn’t Expect: Less Anxiety
Once we hit about $1000 in our emergency fund, something shifted. I stopped worrying about every worst possible scenario I could think of.
I felt stable. Not rich. Not ahead of the game. But prepared. And that matters more than I can even explain.
Eventually, we built it up to cover a full month of expenses. That took time, but it happened.
Quick Real-Talk Tips If You’re Starting from $0:
- Rename the account. Mine’s called “Oopsie Fund.” It keeps it light but reminds me exactly what it’s for.
- Cut just one thing for 30 days. Pick something you won’t miss that much. For me? It was Amazon Shopping. I banned myself for a month and saved over $100. Unreal.
- Keep goals super specific. “Save $100 by the end of the month” = doable. “Build an emergency fund” = vague and overwhelming.
- Make it hard to touch. Seriously. Hide it. I even chose a TFSA investment option without instant access, so taking money out isn’t easy. It helps me keep it sacred.
Here’s the thing: I’m a mom, and yes, I’ve got a background in finance. But, even I had to learn the hard way.
An emergency fund isn’t just for people with money to spare. It’s for every mom trying to stay afloat, whether you’re working full-time, part-time, or juggling a million things at home and beyond, just trying to keep the house from falling apart when life hits hard.
If you’re starting from nothing, don’t be ashamed. Just start. Even if it’s messy. Even if it’s just five bucks in an envelope. START.
And when life throws you something awful (like a surprise hospital bill), and you don’t have to panic? You’ll feel so proud of the steps you took today.
Want a super simple checklist to help you get started?
Download my free printable: “5 Quick Wins to Jumpstart Your Emergency Fund”
It’s practical, and made for moms like us. Real moms trying to make it work without feeling like financial failures.
