MODULE 3
2. Building an Emergency Savings Fund
Planning for Emergencies
Everything will go according to plan… I hope! You need to be prepared for all sorts of situations. In our business, all kinds of things come up that interrupt our seasons. Let’s not forget the pandemic. It’s best to be as prepared as possible. Some people recommend saving up for three months of expenses, but I think it looks different for everyone. As singers, we have to beef up our savings when our income is a little higher in order to pay ourselves in times of drought.
You should look at your emergency savings fund as income for your future. When you have a month with little to no income, you’ll have to draw from your savings to make ends meet. You should plan for slow months, and you should plan for extensive periods of time with no income in case of an emergency.
Questions to Ask Yourself
How much do you already have saved, and have you separated your savings into categories yet? Do you have a specific amount dedicated to an emergency savings fund?
How much do you think you can contribute to an emergency savings fund on a regular basis?
What number would you need to reach in that account in order to feel secure? If an emergency occurred, would you feel safe having that much in your savings account?