How to build an emergency fund and still invest
- kellygandpt
- 35 minutes ago
- 2 min read
Your Money Should Do Two Things at Once! If you’re starting late, you’ve probably been told: “Build an emergency fund first. Then invest later.”
Here’s the problem: later has a way of never showing up.
The truth? You need both, cash for emergencies and money growing for your future, working together. Otherwise, you’ll always be catching up.
Why You Can’t Wait on Investing:
Every year you delay investing is a year you lose to compounding growth. And if you started late, time is your most valuable asset. The market doesn’t wait. Neither should you.
At the same time, life will throw curveballs—car repairs, medical bills, job shifts. Without an #emergencyfund, you’ll end up back in debt and out of the market.
The solution is to build both.
Step 1: Automate an Emergency Fund
Open a High-Yield Savings Account (HYSA) like the one we recommend at Ally Bank.
It's safe, earns up to 4.2% APY (rates vary), and grows while you sleep.
Use our referral link to start earning now:
Start with a goal of $500.00, then grow it to 3–6 months of expenses.
Step 2: Begin Investing Now (Even Small)
While your HYSA grows, open a brokerage account at #Fidelity, #Vanguard, or #CharlesSchwab (we prefer Fidelity).Even if it’s just $25/month in an index fund like VTI or VOO, you’re building momentum.
Step 3: DON'T Use the 70/20/10 Formula
They will tell you it's a powerful split for late starters:
70% → Essentials (bills, needs, this percentage will go down as you pay off debt)
20% → Investments
10% → Emergency Fund (until fully funded, then roll into investments)
This is actually an easy way to NOT realize your goals. Re-think what your "needs" are. When KellyG and I started, we determined that our needs were food, four walls and a roof. Knock that 70% for essentials down to 50% or as close as you can. That is 20% more going toward the emergency fund.
Step 4: Reinvest “Found Money”
Cutting a subscription? Sell unused items? Get a bonus?
Put half into your emergency fund and half into investments. That way, both grow without slowing the other down.
Step 5: Let Your Money Hustle Like You Do.
You hustle every day for your paycheck—now your money should hustle for your future. Every dollar in your #HYSA (high yield savings account) protects you, and every dollar invested grows you.
It’s not too late. It’s just time to start.
Recommended Reads to Dive Deeper:
The Total Money Makeover — Dave Ramsey - https://amzn.to/4jUFNbz
Your Money or Your Life — Vicki Robin & Joe Dominguez - https://amzn.to/4dqz0UU
I Will Teach You to Be Rich — Ramit Sethi - https://amzn.to/4kr1MXM
Smart Women Finish Rich — David Bach - https://amzn.to/4dlIpNo
Disclaimer: We are not financial advisors. We share strategies that have worked for us and others we’ve helped. Always do your own research or speak to a licensed financial professional before making investment decisions. Also, Links included in this description may be affiliate links. If you purchase a product or service with the links provided, we may receive a small commission. There is no additional charge to you. Or if you would like to work with us, go to our CONTACT US/HIRE US page at pkentertainmentventures.com.
