Real-life read: Emergency savings – what’s your why?

For part one of this two-part series, we asked Sorted users what led them to start their rainy-day fund and what motivates them to keep it up.

Mandy: “I have a $15,000 emergency fund. My motivation for starting it was when my husband cheated on me and I had no separate money to my name, so I had to stay with him. I decided then and there that I never wanted to feel like that again, and spent the next two years building my fund. My husband has now moved out and I don’t yet earn enough to pay all my expenses, so I figure it gives me a three-month buffer to up my income.” 

Sally: “I’m one of many public servants who are out of work with no job offers yet. We recently had an emergency with our two dogs – both had medical issues in the same week and required X-rays and surgery. With no current income, our emergency fund meant the difference between life and death."

Poni: “As part of a marginalised community, we need unity. An emergency fund helps support families in need socially and financially.” 

Viv: “All the books I’ve read and influencers I’ve listened to have said an emergency fund is essential. I’m currently thinking of building mine up to cover health costs, so I can slowly reduce my health insurance cover and ‘self-insure’ instead, as it’s getting too expensive.” 

Kaylah: “I started with $1000, then built it up to three months of expenses. For me, a big motivator is retiring early. Once I understood that I could invest my income instead of buying stuff and it would buy back my time/freedom through compound interest, it all clicked. I did everything I could to save an emergency fund for my future self. I cut out everything that is unnecessary – because saving for an emergency fund is an emergency. I’d rather cut out things while I can afford it than be forced to cut it all out because I can’t afford it.” 

Michelle: “I wanted to be able to spend money on big things like travel or a car without worrying about something else coming up. I was in an average job at the time and building up my emergency fund gave me a real sense of freedom and that I really was choosing to be at work.” 

Kat: “Having the security of an emergency fund changed my relationship with money. Knowing I had it there when I needed it made me feel safe and grounded and less likely to fritter money away, thinking, ‘Oh well, I don’t have any money anyway.’” 

Elenoa: “I originally started using Sorted to clean up my finances so our baby can have a better life. Having an emergency fund so that I don’t have to rely on debt was a massive goal. Because my partner works casual, when he has a day off work, he does not get paid. I’ve used my emergency savings to ensure we don’t fall behind on bills and rent if he doesn’t get paid enough.” 

Mo: “I was motivated by Sorted. I’m a single parent and can’t afford to be unprepared for surprises. When I had a dental emergency, it came in handy.” 

Laura: “I read Tales from a Financial Hot Mess by Frances Cook and it really inspired me. It showed me that even small steps are better than nothing. Saving for an emergency is easier than just trying to save in general, without a goal. I've used my emergency money for new car tyres and new glasses after my previous pair were damaged.” 

Sau: “My motivators are: 1. My late mother, who was a saver for rainy days with possibly no equal! 2. My time working for a major bank. I saw so many customers who self-destruct for one reason or another, which gave me many sobering lessons. 3. I was determined to be financially independent as soon as possible, so I made that my goal.” 

Tracey: “I had $5000 in my emergency fund, then had to pay $4500 in vet bills, so it turned out to be a lucky amount! Now I have one happy dog and I’m working hard to save again.” 

Sue: “I was left with three children and literally no money, and struggled financially for many years. An emergency fund gave me peace of mind when things broke down. I’m proud of my achievements as I have now retired and feel good. I’ve maintained my different bank accounts – saving, emergency, day-to-day – and continue to commit to them. I’d like others to be inspired by the simple philosophy of want versus need. I always supermarket shop with a list so that I’m not tempted. I find joy in the simple pleasures of life, tamariki, flowers and feeling grateful for the abundant blessings we already have in our life. No matter how little you have, start saving today and enjoy watching your money grow. Invest wisely what is saved. Stay away from shops! My kids are so proud of my financial achievements through sheer determination to improve my situation.” 

Judy: “We’ve had to use ours for appliance repairs. My tip is to keep putting money into it as often as you can for as long as you can. Have a set goal, then if you save more than that, you’ll feel more comfortable dipping into it when you need to.” 

Kathleen: “We’ve had great budgets for many years, but they don’t work without an emergency fund because there’s always unexpected stuff happening. It feels really good knowing that we have that safety net. We’re in control and prepared.” 

Samantha: “Due to Sorted I had kept rainy-day money aside in a bank account. Out of the blue, my extremely fit and healthy partner suffered a serious medical event. In the end, I didn’t need to access it but it was so helpful having it there. I knew I had ready access to money if I needed it and could focus on my partner rather than financial concerns.” 

Sarah: “I’m motivated by anxiety! And the need for feeling a sense of financial security. I’d advise others to set up automatic payments for whatever they can afford to go into an account with a good interest rate at a bank that you don’t have easy digital access to – ie, don’t download their app.” 

Tralee: “A vehicle mishap for which we had to scramble to find funds really kicked us into gear, and now we deposit into it each week.” 

Ondrej: “My emergency fund has many functions. It ensures my investments in low-cost index funds will be left to compound, even in an emergency. The fund also enables me to have high excess on all my insurance and would comfortably cover a three-month waiting period on insurance. It’s equivalent to 1.5 years of annual spending.” 

Paige: “Once my debts were managed, I could then set a consistent budget. Once my budget was established, I could start to save money. An emergency fund sounded like a brilliant incentive to save; when I didn't have something to save for before, I’d just spend all my money. After reading almost every handy bit of info on Sorted, it seemed like it would be silly not to have an emergency fund because unexpected things constantly happen and if you’re prepared for that, it’s not gonna have such a negative impact on you.” 

Belinda: “I’m on a single income with children to support and wanted to feel secure if anything unexpected came up. I’ve used my emergency savings fund for vet bills, dental bills, to lend money to my children, to visit my parents overseas. I automatically put savings into it every payday and don’t take money out of it unless it’s absolutely necessary. It builds up very quickly. It’s satisfying to see it there and makes me feel safe.” 

If you’d like to join the conversation and share your own experiences with money, we’d love to hear from you. Fill in this form, and we’ll get back to you. Ngā mihi!