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Financial Planning Checklist: What to Consider When Establishing and Maintaining an Emergency Fund

For many, an emergency fund means saving 3-6 months of expenses — but there’s so much more to consider. We’re breaking down the basics and going beyond the surface to help you build a fund that aligns with your financial goals.

Let’s talk about the basics: your emergency fund.

For many, the concept of an emergency fund starts and ends with the idea of saving 3-6 months of expenses. But the reality is that managing an emergency fund – and defining what it should cover – is more nuanced, especially for individuals and families with complex financial situations. 

What exactly constitutes “expenses?”

How do we balance liquidity, security, and opportunity cost?

These are important questions, and they deserve thoughtful consideration.

As financial planners, we spend a lot of time addressing intricate investment strategies. However, building an emergency fund is a foundational step that can make such a big difference in your financial well-being. 

So, let’s revisit the basics!

This checklist is designed to guide you through the key considerations when establishing and maintaining your emergency fund. It’s a tool to help us have meaningful conversations about a topic that’s often overlooked. It includes:

  • How to properly define an emergency fund that suits your situation.
  • Having a plan to address both expected and unexpected expenses in your emergency fund.
  • The pros and cons of where your emergency fund is located.
  • Understanding how your emergency fund might intersect with other planning goals, and what implications that may carry.

By diving into these areas, we can ensure your emergency fund not only meets the basic 3-6 month rule, but that it also aligns with your unique financial circumstances and goals.

Download the Checklist

If you have any questions along the way, don’t hesitate to reach out. 

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Bautis Financial LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance. 

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