Emma admits she recently faced that exact dilemma while out shopping. She found something she really wanted, but the only way to buy it would have been to pull money from her emergency savings. Instead, she paused—and later asked Kayla what the best approach would be if she ever found herself in that situation again.
Kayla’s answer? A simple acronym that can help guide the decision: N.U.N.
The “N.U.N.” Rule for Emergency Funds
Kayla explains that before touching your emergency fund, you should ask yourself three important questions:
N – Is it Needed?
Is the purchase truly necessary, or is it just something you want? Being honest about this question can quickly reveal whether it’s worth using savings meant for emergencies.
U – Is it Unexpected?
Emergency funds are designed for situations you didn’t plan for—like a sudden repair, medical bill, or job loss. If the expense could have been anticipated, it might have been better handled through regular budgeting or saving ahead.
N – Is it Now?
Does the purchase have to happen immediately, or can it wait? If you can delay it, you might be able to save for it instead of using your emergency fund.
If the honest answer to all three questions is yes, Kayla says it may be appropriate to dip into your emergency savings. But if even one answer is no, it’s a sign that you might want to reconsider.
The Power of the 24-Hour Rule
Kayla also recommends another simple strategy: wait 24 hours before making the purchase.
She shares a personal story about seeing a display of Halloween decorations at a home improvement store and feeling the urge to buy them immediately. Her husband encouraged her to pause and ask the N.U.N. questions. After waiting a day, she realized the decorations weren’t needed, weren’t truly unexpected, and definitely weren’t urgent.
By the next day, she had completely forgotten about them—and was glad she didn’t spend the money.
Rebuilding Your Emergency Fund
If you ever do use money from your emergency fund, Kayla emphasizes the importance of rebuilding it as quickly as possible. Ideally, an emergency fund should cover three to six months of expenses, giving you financial security if something major happens, such as a job loss or unexpected life event.
Consider a Sinking Fund Instead
Emma shares that in her situation, she ultimately waited a few weeks until her next paycheck arrived before making the purchase. By doing that, she avoided touching her emergency savings.
Kayla says that’s a perfect example of where a sinking fund can help. A sinking fund allows you to set aside small amounts of money each month for upcoming purchases—like furniture, home items, or holiday expenses—so you’re prepared when the time comes.
More Financial Tips from Kayla
Kayla also mentions that the N.U.N. concept is explored even further in her book. Listeners who want to learn more can find additional financial advice and resources at kaylatenboersipes.com.
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