Why Your “Emergency Fund” Needs a Peace of Mind Upgrade

Jenny Whichello, Bliss + Wealth
4 min readMar 17, 2024

Picture this: a sudden car repair bill lands in your inbox, your pet needs unexpected surgery, or your roof decides to play peek-a-boo with the sky. Panic sets in, your heart races, and that familiar knot of “oh-no” twists in your stomach. Sound familiar?

Enter the trusty “emergency fund,” often viewed as a financial safety net against life’s unpredictable jabs. But what if I told you reframing this very concept unlocks a powerful shift in your relationship with money and fosters true peace of mind? Let’s ditch the “emergency” label and step into the world of the Peace of Mind Fund.

Words Matter, Money Feels

We often underestimate the power of language. But studies by the National Endowment for Financial Education show that framing financial concepts differently can significantly impact our behavior. “Emergency fund” evokes a sense of scarcity, negativity, and the dreaded unexpected. It implies waiting for bad things to happen, putting us in a reactive, stressed-out state.

Have you ever noticed how some people seem to effortlessly attract abundance, while others struggle to make ends meet, even with similar incomes? The secret might lie not just in their financial strategies, but in the very language they use to talk about money. Words, after all, are more than just sounds; they’re powerful tools that shape our thoughts, beliefs, and ultimately, our realities.

Unveiling the Hidden Narratives:

The way we talk about money reveals our underlying beliefs about it. Do you use scarcity-laden phrases like “I can never afford that” or “money is tight”? These statements, while seemingly harmless, can subconsciously reinforce limiting beliefs that hinder your financial growth. Alternatively, using empowering language like “I choose to invest in myself” or “money flows abundantly in my life” reflects a belief system that attracts opportunities and fosters a healthy relationship with wealth.

The Science Behind the Speak:

It’s not just a hunch. Studies by the Association for Psychological Science show that positive self-talk can lead to increased motivation and goal achievement. Conversely, negative language patterns can create self-fulfilling prophecies, limiting your potential and reinforcing financial stagnation.

From Words to Actions:

Your money talk doesn’t exist in a vacuum. It influences your financial behaviors. Saying “I’m bad with money” might lead to impulsive spending or avoidance of financial planning. On the other hand, stating “I am learning to manage my finances wisely” encourages proactive budgeting and responsible spending. Remember, your words have the power to propel you forward or hold you back.

Peace of Mind, Not Just Emergencies

Instead, imagine a “Peace of Mind Fund.” This simple reframe shifts the focus from reacting to emergencies to proactively cultivating security and wellbeing. It signifies preparedness, empowerment, and a positive outlook on your financial future. A study by the University of California, Berkeley, found that people who framed their savings as “for future opportunities” saved more compared to those focusing on “financial security.” The positive, aspirational language fueled their motivation.

Think of your Peace of Mind Fund as a buffer against life’s little surprises too. A leaky faucet, a missed flight refund, or a friend’s wedding invitation with a travel RSVP — these “non-emergencies” can still derail your financial goals and cause stress. Having a buffer allows you to handle these hiccups smoothly, preventing them from morphing into full-blown emergencies.

Consider this: a 2023 study by the Federal Reserve revealed that 40% of Americans wouldn’t be able to cover a $400 unexpected expense. This highlights the need for a readily accessible financial cushion that goes beyond just “emergencies.” A Peace of Mind Fund empowers you to face life’s uncertainties with confidence, knowing you have resources to navigate them without financial strain.

Making the Shift from “Emergency Fund”

Remember, financial stress impacts more than just your bank account. A 2022 study by the American Psychological Association found that financial worries are linked to anxiety, depression, and even physical health problems. By building your Peace of Mind Fund, you’re not just saving money; you’re investing in your overall well-being and reducing stress, contributing to a happier, healthier you.

Ready to upgrade your “emergency fund” mindset? Here’s how:

  1. Visualize Your Peace: Take a moment to imagine the feeling of calmness and security that comes with knowing you have a financial buffer. Let that positive emotion guide your approach.
  2. Set Intentions, Not Just Limits: Instead of focusing solely on “emergencies,” define what “peace of mind” means to you. Is it covering unexpected bills, pursuing a dream vacation, or having the freedom to say “yes” to spontaneous adventures? Align your fund with your specific goals.
  3. Celebrate Small Wins: Every dollar saved is a step towards your Peace of Mind Fund. Celebrate milestones, even small ones, to stay motivated and track your progress.
  4. Language Matters: Talk about your savings with positive, empowering language. Instead of saying “I need to save for emergencies,” say “I’m building my Peace of Mind Fund for a blissful future.”
  5. Spread the Word: Share the “Peace of Mind Fund” concept with friends and family. Encourage them to reframe their savings perspectives and experience the positive shift.

Remember, a mindset shift is just the beginning. Taking action, even small steps, towards building your Peace of Mind Fund is key. By consciously transforming your money talk, you can unlock your true financial potential, shift your limiting beliefs, and rewrite your financial story, one empowered word at a time. Start today, speak abundance into existence, and watch your financial reality bloom!

Want to learn more about how to harness the power of reframing? Enroll in my free 10-day Money Mindset Reset course!

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Jenny Whichello, Bliss + Wealth

On a mission to help the next generation of unstoppable women have blissful relationships with money while building wealth! Free resources @ blissandwealth.com