In December 2023, research from the University of Melbourne showed that 56 per cent of Australians were struggling or failing to make ends meet, citing an increase in utility prices, mortgages and rents, groceries and petrol as the main culprits.

Three months on, many would say little has changed between now and then, while for some, the sustained high costs have made things worse.

Often, I hear people say using their emergency fund feels like a failure or like they’ve let themselves down. But that’s what those funds are there for.Credit: Dionne Gain

If you had to count the number of times you’ve felt stressed about money this year, would you be able to put a solid figure on it? For the vast majority of Australians right now, I’d conservatively estimate that stress gatecrashes into your mind uninvited at least once a week, but I know that for others it would be closer to at least once a day.

But what if the cure – or at least a pain reliever – to that stress was already at your disposal? For anyone with an emergency savings fund, it is. However, the problem with emergency funds, despite them being created for these exact situations, most of us don’t look at our emergency funds that way.

Unlike saving for a holiday or a house deposit, an emergency fund is designed specifically for those moments outside your control when the proverbial hits the fan. You get a flat tyre or need a root canal; your energy bill is substantially higher than you’d budgeted for, or the kids need a new sports kit.

Your emergency fund is your ultimate plan B back-up, and if you’re lucky enough to have one, you and I both know how hard you’ve worked to set that money aside.

There is no shame in the game of spending the savings you worked damn hard to attain in the first place.

The amount of money in an emergency fund can vary dramatically from person to person, with some people having as little as $500 and others having as much as $20,000. Either way, an emergency fund’s entire reason for being is to sit pretty and play the waiting game until it’s needed. It’s Present-Day You’s way of saying “I’ve got you” to Future You.

For many people, the rainy day has now come.

QOSHE - Why you shouldn’t feel ashamed of dipping into your savings - Victoria Devine
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Why you shouldn’t feel ashamed of dipping into your savings

12 2
31.03.2024

In December 2023, research from the University of Melbourne showed that 56 per cent of Australians were struggling or failing to make ends meet, citing an increase in utility prices, mortgages and rents, groceries and petrol as the main culprits.

Three months on, many would say little has changed between now and then, while for some, the sustained high costs have made things worse.

Often, I hear people say using their emergency fund feels like a failure or like they’ve let themselves down. But that’s what those funds are there........

© The Sydney Morning Herald


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