The Murphy’s Law and Your Emergency Fund

We all go through the school of life. For some, it can be more expensive than their formal university or college education. Mistakes are made. Reality sets in. Oftentimes, it is not up to us and it is not even our fault that something bad happened to us or our families. According to Murphy’s Law what can go wrong will.

Think back through your personal experience. Have you ever experienced any of the following:

  • Your car broke down and you needed money for repairs
  • Your paycheck was late
  • You got sick on a trip and needed medical attention
  • Your family needed financial support
  • Your tenant decided not pay rent
  • You needed money for medication or a medication emergency

There are multiple situations each and every one of us go through. These situations are not our fault, and their are inevitable.

What matters is, how we deal with these situations and get through them. The answer is simple – build an emergency fund to address the fact that life can be a b*tch.

Annual financial industry surveys indicate that half of Canadians cannot cover a $1000 financial emergency.

I get it. We got expenses, we got kids to pay for, we have to cover rent, gas, Valentine Day’s presents, Birthday presents, subscriptions to Netflix, Amazon Prime …

Well, it is time that you protect yourself. Here is an example of a simple plan.

Step 1: Build a $1000 emergency fund

Commit yourself to cancelling unnecessary subscriptions, gym memberships, do some extra gigs on a side and save.

Right down the $ amount to contribute to your emergency fund on a monthly basis

Automate your savings via a bank deposit into a separately managed account

Step 2: Build a 6 Month Emergency Fund

Most experts recommend 3-6 months in emergency money.

Calculate your monthly expenses. Go through your credit cards, cash withdrawal data, and other bank statements

Emergency Fund Size = Monthly Expenses *6

Finally, set up an automatic contribution into a separate bank account.


To stay protected, we have to make our sacrifices. No Uber Eats until you build that $1000 emergency fund. No pain no gain.

Get going. If you don’t do it for yourself, then no one will.

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