Q&A: Should I use an emergency savings fund for my side hustle?

Notes from Chris

Episode 1761

Let’s get real! Today’s topic can be expressed in a single sentence: Should I use an emergency savings fund for my side hustle?

I feel like everyone who hears that question already has an opinion. In this ongoing dialogue I try to provide my answer as well as pose any further questions that might be helpful.

"Hi Chris this is Jess from Arcadia and I recently found your show through Spotify. A few years ago, I began to take my finances more seriously and work on a plan to get out of debt. That led me to you and the goal of increasing my income rather than just trying to cut expenses and save more. But I have a dilemma: a business project I'd like to invest in will require some real capital—it's not a hundred-dollar startup. I have an emergency savings fund that I could tap, but this isn't an emergency. I’ve thought a lot about it and I don’t think it’s a gamble; I think it’s a true investment in an idea I believe in. But I’m also pretty sure most financial advisers would say “Don’t touch your emergency fund.” What do you say?"

Listen to today's episode to learn more...

 

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SEE ALSO:

• Q&A: How does a side hustle fit into a savings plan?: How does a side hustle fit into your overall savings plan? That’s what our listener wants to know, in response to some recent comments on different asset classes.
• Q&A: What kind of business can I start with $300?: If you only have a small amount of money, what’s the best side hustle to pursue?
• WEEKLY RECAP: The $0 Startup, Sign Hustles, and Ways to Save Time: In our ninth recap of Season III, we'll highlight the lessons learned in this week. Also: an audio update from a previous case study!

Inspiration is good; inspiration combined with action is better. Now get back to work!

Yours in the revolution,