August 8, 2025 • 10 mins
In this episode of the Wealthwise Woman Podcast, Anna explains why an emergency fund is the cornerstone of financial security for women. She covers how to start small, choose the right savings account, and automate contributions so building your fund becomes effortless. Listeners learn how to set realistic milestones, protect their savings from “fake emergencies,” and quickly rebuild after using it. Anna also shares a 90-day starter plan that makes creating a safety net achievable, even on a tight budget. By the end of the episode, you’ll know exactly how to create a financial buffer that brings peace of mind and lasting stability.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome back to the wealth Wise Woman podcast. I'm your host, Anna,
and before we begin, as always, please remember this podcast
is for educational and informational purposes only. It is not
financial advice. Always do your own research and consult a
license financial professional before making any major financial decisions. All right,
(00:22):
let's talk about something that's not flashy, not glamorous, and
not trending on Instagram, but could literally save your financial life.
Your emergency fund. I know it doesn't sound as exciting
as investing in the stock market, buying property, or starting
a side hustle, but here's the truth. Without an emergency fund,
(00:43):
all those other financial goals can crumble in an instant. Today,
in part one of this episode, we're going to cover
what an emergency fund actually is and what it's not,
why it's absolutely critical for women in particular, the psychologue
benefits that go beyond money, How to figure out your
(01:03):
personal emergency fund, target common mistakes people make when trying
to build one. Then in part two, we'll get into
exactly how to start even if you're living paycheck to paycheck,
Where to keep your emergency fund so it's safe but accessible,
how to protect it from fake emergencies, and how to
rebuild it if you ever need to use it. So
(01:26):
let's start with the basics. What is an emergency fund really?
An emergency fund is a stash of money set aside
to cover unexpected necessary expenses. That's the key, unexpected and necessary.
We're talking about things like job loss, medical bills, urgent
(01:46):
car repairs, emergency travel to be with family, a broken
boiler in the middle of winter. It's not for new shoes,
last minute concert tickets, or a spontaneous vacation. That's what
your fun money or savings goals are for. Think of
your emergency fund as your personal financial airbag. You hope
you never have to use it, but when life throws
(02:07):
you a crash, it keeps you from financial injury. Why
it's even more important for women. Here's the thing. Everyone
needs an emergency fund, but for women, the stakes are
often higher. Women statistically earn less over their lifetimes, gender
pay gap, are more likely to take career breaks for
(02:30):
childcare or elder care, live longer, meaning more years to
fund without guaranteed income, are more likely to be single
later in life due to divorce or widowhood. Because of
these realities, a financial shock without a safety net can
be even more devastating. I've heard stories from women who
had to go into high interests at after a job loss,
(02:51):
or who stayed in toxic relationships because they couldn't afford
to leave. Your emergency fund is not just about money.
It's about options and freedom, the psychological benefits nobody talks about.
We often think of an emergency fund as just a
pile of cash, but it's so much more than that.
When you have a solid safety net, you sleep better
(03:14):
at night. You feel more confident taking career risks like
negotiating or changing jobs. You make better financial decisions because
you're not operating from fear. You reduce stress in relationships
because money isn't a constant source of tension money stress
doesn't just hurt your finances. It impacts your health, your
mental well being, and your overall quality of life. Your
(03:37):
emergency fund is a form of self care. How much
do you really need? You've probably heard the standard advice
save three six months of living expenses. That's a great guideline,
but let's make it more personal. Ask yourself how stable
is my job or income. Freelancers or commission based workers
(03:58):
may need more. Do I have dependents? Kids, elderly parents,
anyone relying on my income. Do I have other safety
nets a partner's income, family support, insurance coverage. For some women,
three months is enough. For others, especially single income households,
six to nine months might feel safer. The easiest way
(04:19):
to calculate your goal add up your essential monthly expenses housing, utilities, groceries, insurance, transportation,
debt payments. Multiply by the number of months of security
you want. Example, if your essentials are two thousand, five
hundred dollars per month and you want six months saved,
(04:40):
your target is fifteen thousand dollars. That might sound intimidating,
but remember you don't have to get there overnight. Common
mistakes people make. Before we wrap Part one, let's talk
about what not to do. Keeping it all in checking
this makes it too tempting to spend investing it in
(05:02):
the stock market. Your emergency fund needs to be safe
and accessible, not subject to market swings. Using it for
non emergencies new couch not an emergency waiting until you
make more to start. The best time to start is now,
even if it's ten dollars a week. Now it's time
to get practical. Step one start small and start now.
(05:27):
One of the biggest mistakes I see is women waiting
until they have more money to start an emergency fund.
The truth, the habit matters more than the amount at
the beginning. Even if you can only save ten dollars
or twenty dollars a week, that's progress. It's less about
the size of your first deposit and more about creating
the habit of paying yourself first. Quick tip treat your
(05:51):
emergency fund like a bill. Schedule an automatic transfer to
it every month, just like you pay rent or your
phone bill. Step two. Find the right place to keep it.
Your emergency fund needs to be safe, separate, and accessible.
Good options include high yield savings accounts hysay earn more
(06:14):
interest while keeping your money liquid. Money market accounts slightly
higher yields, still safe and accessible. Separate bank account at
a different bank than your main checking so you're less
tempted to touch it. Avoid regular checking accounts too easy
to dip into investments like stocks or crypto, too volatile,
(06:35):
cash hidden at home, unsafe and earns zero interest. Step three,
make it automatic. Automation is your best friend. Set up
a recurring transfer from your main account to your emergency
fund right after payday. This removes willpower from the equation.
The money is gone before you can spend it. Step four.
(07:00):
Build in milestones. Saving for an emergency fund can feel
overwhelming if you only look at the final number. Break
it into milestones. Step one five hundred dollars. This covers
small urgent expenses. Step two one month of essentials. Step
three three months of essentials. Step four six months of essentials.
(07:21):
Celebrate each milestone, but don't reward yourself by spending from
the fund. Step five. Protect it from fake emergencies. Here's
the tricky part defining what counts as an emergency. A
real emergency is unexpected, necessary urgent a new TV because
(07:42):
yours is outdated, not an emergency an urgent medical bill. Yes,
that's exactly what this fund is for. Pro tip keep
a small unexpected expenses category in your regular budget for
those in between things that don't quite qualify. Step six.
Rebuild after you use it. If you ever need to
(08:05):
dip into your emergency fund, that's okay, that's the whole point,
But once the crisis passes, make replenishing it a top priority.
Think of it like refilling the tank on your car
before your next road trip. A ninety day starter plan.
If you're starting from scratch, here's a realistic three month plan.
Month one, open a separate high yield savings account. Transfer
(08:29):
ten dollars fifty dollars a week whatever you can, sell
one unused item from your home and add that money.
Month two, increase your weekly transfer by five dollars ten dollars.
Cut one small recurring expense like a streaming service, and
redirect that money. Put all side hustle or overtime income
(08:50):
into the fund. Month three, aim to hit your first
five hundred dollars milestone. Review your budget for more found
money opportunities. Commit to automatic transfers continuing beyond ninety days.
Why an emergency fund is step one, not step later.
(09:11):
Some people think I'll start investing first, then build my
emergency fund, but without a safety net, you may be
forced to sell investments at a loss when emergencies happen.
Your emergency fund is the foundation that allows the rest
of your financial life to grow safely. Final thoughts. An
emergency fund isn't exciting, it's not flashy, no one's going
(09:33):
to post it on Instagram. But it's the quiet hero
of financial stability. It's the thing that lets you sleep
at night, it's what gives you options when life throws
a curveball, and it's one of the most powerful acts
of self care you can do for your future self.
So start today, open that account, move that first twenty dollars,
(09:55):
and know that every single deposit is a step toward
more freedom, less stress, and a stronger financial future. If
you like today's episode, please share it with a friend
or sister who doesn't yet have her safety net in place,
and don't forget to subscribe, because next week we're talking
about the true cost of credit card debt and how
to break free. Until then, I'm anna, and remember knowledge
(10:20):
is not just power, it's financial freedom.
Welcome back to the wealth Wise Woman podcast. I'm your host, Anna,
and before we begin, as always, please remember this podcast
is for educational and informational purposes only. It is not
financial advice. Always do your own research and consult a
license financial professional before making any major financial decisions. All right,
(00:22):
let's talk about something that's not flashy, not glamorous, and
not trending on Instagram, but could literally save your financial life.
Your emergency fund. I know it doesn't sound as exciting
as investing in the stock market, buying property, or starting
a side hustle, but here's the truth. Without an emergency fund,
(00:43):
all those other financial goals can crumble in an instant. Today,
in part one of this episode, we're going to cover
what an emergency fund actually is and what it's not,
why it's absolutely critical for women in particular, the psychologue
benefits that go beyond money, How to figure out your
(01:03):
personal emergency fund, target common mistakes people make when trying
to build one. Then in part two, we'll get into
exactly how to start even if you're living paycheck to paycheck,
Where to keep your emergency fund so it's safe but accessible,
how to protect it from fake emergencies, and how to
rebuild it if you ever need to use it. So
(01:26):
let's start with the basics. What is an emergency fund really?
An emergency fund is a stash of money set aside
to cover unexpected necessary expenses. That's the key, unexpected and necessary.
We're talking about things like job loss, medical bills, urgent
(01:46):
car repairs, emergency travel to be with family, a broken
boiler in the middle of winter. It's not for new shoes,
last minute concert tickets, or a spontaneous vacation. That's what
your fun money or savings goals are for. Think of
your emergency fund as your personal financial airbag. You hope
you never have to use it, but when life throws
(02:07):
you a crash, it keeps you from financial injury. Why
it's even more important for women. Here's the thing. Everyone
needs an emergency fund, but for women, the stakes are
often higher. Women statistically earn less over their lifetimes, gender
pay gap, are more likely to take career breaks for
(02:30):
childcare or elder care, live longer, meaning more years to
fund without guaranteed income, are more likely to be single
later in life due to divorce or widowhood. Because of
these realities, a financial shock without a safety net can
be even more devastating. I've heard stories from women who
had to go into high interests at after a job loss,
(02:51):
or who stayed in toxic relationships because they couldn't afford
to leave. Your emergency fund is not just about money.
It's about options and freedom, the psychological benefits nobody talks about.
We often think of an emergency fund as just a
pile of cash, but it's so much more than that.
When you have a solid safety net, you sleep better
(03:14):
at night. You feel more confident taking career risks like
negotiating or changing jobs. You make better financial decisions because
you're not operating from fear. You reduce stress in relationships
because money isn't a constant source of tension money stress
doesn't just hurt your finances. It impacts your health, your
mental well being, and your overall quality of life. Your
(03:37):
emergency fund is a form of self care. How much
do you really need? You've probably heard the standard advice
save three six months of living expenses. That's a great guideline,
but let's make it more personal. Ask yourself how stable
is my job or income. Freelancers or commission based workers
(03:58):
may need more. Do I have dependents? Kids, elderly parents,
anyone relying on my income. Do I have other safety
nets a partner's income, family support, insurance coverage. For some women,
three months is enough. For others, especially single income households,
six to nine months might feel safer. The easiest way
(04:19):
to calculate your goal add up your essential monthly expenses housing, utilities, groceries, insurance, transportation,
debt payments. Multiply by the number of months of security
you want. Example, if your essentials are two thousand, five
hundred dollars per month and you want six months saved,
(04:40):
your target is fifteen thousand dollars. That might sound intimidating,
but remember you don't have to get there overnight. Common
mistakes people make. Before we wrap Part one, let's talk
about what not to do. Keeping it all in checking
this makes it too tempting to spend investing it in
(05:02):
the stock market. Your emergency fund needs to be safe
and accessible, not subject to market swings. Using it for
non emergencies new couch not an emergency waiting until you
make more to start. The best time to start is now,
even if it's ten dollars a week. Now it's time
to get practical. Step one start small and start now.
(05:27):
One of the biggest mistakes I see is women waiting
until they have more money to start an emergency fund.
The truth, the habit matters more than the amount at
the beginning. Even if you can only save ten dollars
or twenty dollars a week, that's progress. It's less about
the size of your first deposit and more about creating
the habit of paying yourself first. Quick tip treat your
(05:51):
emergency fund like a bill. Schedule an automatic transfer to
it every month, just like you pay rent or your
phone bill. Step two. Find the right place to keep it.
Your emergency fund needs to be safe, separate, and accessible.
Good options include high yield savings accounts hysay earn more
(06:14):
interest while keeping your money liquid. Money market accounts slightly
higher yields, still safe and accessible. Separate bank account at
a different bank than your main checking so you're less
tempted to touch it. Avoid regular checking accounts too easy
to dip into investments like stocks or crypto, too volatile,
(06:35):
cash hidden at home, unsafe and earns zero interest. Step three,
make it automatic. Automation is your best friend. Set up
a recurring transfer from your main account to your emergency
fund right after payday. This removes willpower from the equation.
The money is gone before you can spend it. Step four.
(07:00):
Build in milestones. Saving for an emergency fund can feel
overwhelming if you only look at the final number. Break
it into milestones. Step one five hundred dollars. This covers
small urgent expenses. Step two one month of essentials. Step
three three months of essentials. Step four six months of essentials.
(07:21):
Celebrate each milestone, but don't reward yourself by spending from
the fund. Step five. Protect it from fake emergencies. Here's
the tricky part defining what counts as an emergency. A
real emergency is unexpected, necessary urgent a new TV because
(07:42):
yours is outdated, not an emergency an urgent medical bill. Yes,
that's exactly what this fund is for. Pro tip keep
a small unexpected expenses category in your regular budget for
those in between things that don't quite qualify. Step six.
Rebuild after you use it. If you ever need to
(08:05):
dip into your emergency fund, that's okay, that's the whole point,
But once the crisis passes, make replenishing it a top priority.
Think of it like refilling the tank on your car
before your next road trip. A ninety day starter plan.
If you're starting from scratch, here's a realistic three month plan.
Month one, open a separate high yield savings account. Transfer
(08:29):
ten dollars fifty dollars a week whatever you can, sell
one unused item from your home and add that money.
Month two, increase your weekly transfer by five dollars ten dollars.
Cut one small recurring expense like a streaming service, and
redirect that money. Put all side hustle or overtime income
(08:50):
into the fund. Month three, aim to hit your first
five hundred dollars milestone. Review your budget for more found
money opportunities. Commit to automatic transfers continuing beyond ninety days.
Why an emergency fund is step one, not step later.
(09:11):
Some people think I'll start investing first, then build my
emergency fund, but without a safety net, you may be
forced to sell investments at a loss when emergencies happen.
Your emergency fund is the foundation that allows the rest
of your financial life to grow safely. Final thoughts. An
emergency fund isn't exciting, it's not flashy, no one's going
(09:33):
to post it on Instagram. But it's the quiet hero
of financial stability. It's the thing that lets you sleep
at night, it's what gives you options when life throws
a curveball, and it's one of the most powerful acts
of self care you can do for your future self.
So start today, open that account, move that first twenty dollars,
(09:55):
and know that every single deposit is a step toward
more freedom, less stress, and a stronger financial future. If
you like today's episode, please share it with a friend
or sister who doesn't yet have her safety net in place,
and don't forget to subscribe, because next week we're talking
about the true cost of credit card debt and how
to break free. Until then, I'm anna, and remember knowledge
(10:20):
is not just power, it's financial freedom.
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