Adjust Your Emergency Savings for Financial Independence

Quick Look

Much like you did when you adjusted your savings during the Growth stage, you’ll want to follow the same steps this time. This means…

  • Determine how much you can adjust your savings transfer amount by
  • Determine if your increase will be to a recurring transfer or a one time transfer
  • Go to the account where the transfer is set up to make the update or one time transfer


Calculate When You’ll Reach Your Goal

Since funding your “emergency” fund at the Independence level may mean something slightly different from what it meant before, you may want to take a moment to calculate when you’ll reach your goal based on your existing transfer rate. This may incentivize you to save more if you can.

To do this, simply take the value you would like your emergency fund to be, subtract its current value, and divide the remaining number by your monthly contribution. The result is the number of months it will take to reach your goal.


  • Desired Emergency Fund: $30,000
  • Existing Emergency Fund: $20,000
  • Monthly Contribution: $500

($30,000 – $20,000) / $500 = 20 months to reach your goal.

In the above example, increasing contributions to $750 a month, would reach the goal in 13.3 months, more than half a year earlier.

Don’t forget

The sooner you reach your emergency fund goal, the sooner the full amount of your regular monthly contributions can be used for something else!

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