It’s time to ditch the term “Emergency Fund”

The term ‘Emergency Fund’ is what most of us use to describe the savings account that serves as a safety net, but there are two problems with this.

First - what ‘counts’ as an emergency? A medical crisis - sure. A car accident - also yes. But what about losing your job? What about quitting your job because it’s impacting your health and relationships? The gremlin in your mind will say, “Are those really an emergency?” The term is pretty loaded and doesn’t allow for much space between the black and white of what is and is not an emergency. 

So what ends up happening? You feel a lot of guilt and shame around accessing your ‘Emergency Fund’ when navigating a job search, which is absolutely the LAST thing you need right now. Job searching is hard enough - don’t let the shame gremlin make it even harder.

Second - because these funds are for an emergency, the money is loaded with anxious energy, and by dipping into this account, you begin to believe that you are indeed in an emergency. The scarcity mindset builds, your nervous system goes nuts, and you bring allllll that access energy to your interviews (hint: this rarely works out well).

The problem isn’t with having a safety net, the problem is in the name you give it. My invitation is to shed this outdated designation and replace it with something more nourishing, such as Freedom Fund.

What could a Freedom Fund mean for you instead? It’s money that can support you in taking a work sabbatical, or in getting that new certification, or taking a break to take care of a sick family member, or taking your time in your job search to find the perfect fit, or hiring a coach (heyo!) to help you discover what’s possible with this next phase of your career.

Can you feel the difference?

Freedom Fund > Emergency Fund. Try it on and see what shifts.

(Photo funded by my own Freedom Fund, where I traveled solo through Asia on a work sabbatical in 2019)