Be prepared, because life happens! Having an emergency fund means having one less thing to worry about when the unexpected happens. About First Credit Union First Credit Union is the longest-running credit union in BC, incorporated in 1939. With five insurance branches, five credit union branches, $300 million in credit union assets, and $100 million in wealth management assets, the organization’s 150 employees serve over 40,000 members and clients across four coastal communities. http://www.firstcu.ca

1. BROUGHT TO YOU BY
Emergency Fund
BOOT CAMP

2. What is an
EMERGENCY FUND?

3. A C A D E M I C D E F I N I T I O N
An account that is used to set aside funds
to be used in an emergency, such as the
loss of a job, an illness or a major expense.

4. R E A L - W O R L D D E F I N I T I O N
An easily accessible stash of money for use
only in case of an emergency.

5. 6 STEPS TO BUILDING
AN EMERGENCY FUND

6. START ONE

7. WHO?
Everyone!
WHY?
Life is unpredictable, and all it
takes is one obstacle to derail
your financial routine.
An emergency fund minimizes
the stress and damage caused by
surprise expenses.

8. KEEP IT CLOSE

9. HANDY
Your emergency fund needs
to be accessible, so when it’s
needed, you can get to it fast.

10. SEPARATE
An interest-bearing savings
account is the perfect place
for your emergency fund.

11. GET TO KNOW
YOUR UNKNOWNS

12. VS.
UNKNOWN
UNKNOWNS
KNOWN
UNKNOWNS

13. UNKNOWN
UNKNOWNS Unknown unknown expenses
are the expenses that are
truly unpredictable.
You don’t know when they will
happen, what they will be or
how much you’ll need.

14. UNKNOWN
UNKNOWNS Unknown unknowns are the
motivation for creating an
emergency fund.
E X A M P L E S
• Sudden unemployment
• Health emergencies
• Accidents
• Bereavement travel

15. KNOWN
UNKNOWNS
Known unknowns are
expenses that are somewhat
predictable.
You don’t know exactly when
they will happen, but you
know that it’s only a matter
of time.

16. KNOWN
UNKNOWNS Known unknowns should be
budgeted for separately, outside
of your emergency fund.
E X A M P L E S
• Major car repairs
• Pet care
• Home repair
• Replacing a major appliance

17. DEFINE EMERGENCY

18. Emergencies
come in many
different forms.
Any situation that
threatens your cash flow
is appropriate for your
emergency fund to step in
and handle.
E X A M P L E S
• Being out of work for an
extended period of time
• Needing to take care of a
loved one
• Waiting for an insurance
reimbursement

19. CALCULATE YOUR GOAL

20. EMERGENCY
Monthly
Expenses
Emergency
Fund Size
$ 500 $ 3,000
$ 1,000 $ 6,000
$ 1,500 $ 9,000
$ 2,000 $ 12,000
$ 2,500 $ 15,000
Monthly
Expenses
Emergency
Fund Size
$ 3,000 $ 18,000
$ 3,500 $ 21,000
$ 4,000 $ 24,000
$ 4,500 $ 27,000
$ 5,000 $ 30,000
SIX MONTHS OF EXPENSES

21. STICK WITH IT

22. Six months of expenses is
an intimidating target.
Set incremental
benchmarks—$500,
then $1,000 and so on.
SMALL STEPS

23. A healthy emergency fund
takes time to build.
Be patient, keep reaching
for that goal and only touch
your fund if there’s a true
emergency.PATIENCE

24. Source: Canadian Living, Get Rich Slowly, Investopia
It’s a Money Thing is a registered trademark of Currency Marketing
BROUGHT TO YOU BY