Ok, it’s anecdotal research, but still. As a rule, when you are following YNAB’s Four Rules, you tend to not need as big an emergency fund.
It isn’t that YNABers are inherently lucky, or that they never encounter less-than-ideal circumstances, it’s just that by following Rule Two, planning for long-term expenses and anticipating the unexpected, you can eliminate most things that would have otherwise constituted an emergency.
Things that used to feel stressful,… well, they aren’t stressful anymore. If you are already planning for it—and there is money in the bank, waiting to do its job—it isn’t much of an emergency. This is the power of YNAB.
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Until next time…