1. Murphy’s Law is alive and well. Both my husband and I have worked in consulting (we actually met at work) so we thought we had experienced Murphy’s Law at its harshest. The notion that “if things can go wrong, they will” shifted to an entirely different level when we became parents who owned a business. If I had a hard deadline to meet and limited hours to complete the work, everyone in our family would become violently ill with the flu. If I had an important meeting at a client’s office, our babysitter would cancel at the last minute. It was stunning to watch this law come into play again and again. Know that it will. Which brings me to my second point….
2. Flexibility is crucial. Murphy’s Law ran rampant when I limited my options. When I leveraged the flexibility I had instead, the impact of Murphy’s Law was limited. If my daughter took an extra long nap, I would use that time to catch up on paperwork. After rescheduling several meetings and taking my baby to others after sitters canceled, I changed my childcare strategy and split the week between two sitters. That way even if one sitter had an emergency, I would (most likely) still get a couple of days to work. I also built much more time into my internal estimates for projects. I was accustomed to working at a sprint so estimated my project timelines from that viewpoint. Now I build in time for my children to be feverish and for me then contract their illnesses once the kids are feeling better – real life estimates, in other words. By assuming things will go wrong, their impact is lessened if they do.
3. Boundaries aren’t just for kids. With my office now in my home, the separation between work life and home life was initially, and for several years, very blurred. If I couldn’t sleep, I would drift into my office to “finish up a few things” and end up staying awake for hours. If the phone rang during dinner, I would “take a quick call” and end up motioning for my family to go ahead without me while a client started point number five on her thirteen point agenda. It took me a while to realize I needed boundaries for myself, not just for my kids. Now I have a designated work space and set hours when clients can reach me. When I shut down my computer, work time is done and family time begins.
4. Flowing cash makes for happy families. The first time that paying bills was problematic because a client hadn’t paid me on time was an eye opener. Cash flow can make or break a business! I had read that many times but living it was something else. Don’t paint yourself into a corner – establish an emergency fund or structure your business so cash flow issues don’t clog your financial life.

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1. Our day-to-day stress level is much lower with an e-fund in place. I was shocked when I saw how having an emergency fund in place turned down the volume of my worries about money. The week before payday used to be a time to fret as I nervously watched the mail for checks from clients and calculated what we could and could not buy at the grocery store. Now these weeks are no more stressful than the others. This alone is an incredible benefit!
2. Many individual situations are no longer stressful as well. Before we had money set aside, a “rainy day” was triggered by only a few sprinkles. Now we have an umbrella to keep us dry longer. This means new tires for our car are just new tires, not the beginning of a financial flood.
3. Our emergency fund helps me be a better parent. I’m sure there are parents who can put financial worries aside and turn their full attention to their child; I also know that I am not one of them. When I was worrying about paying each bills, I worried around the clock. Even when playing with my children, my mind was often working to figure out a solution so I was not always fully present. Now when I am with my kids, finances are not fighting for my attention.
4. We enjoy time with our children more. We find it easier to enjoy snuggling up with our kids when that overwhelming feeling of, “What are we going to do?” is not pushing for a seat on the couch. See also points 1, 2, and 3.
5. Cash flow has some help remaining fluid. I’ve mentioned the importance of cash flow in other articles (Four Lessons from Self-Employment). The issue is repeated because it is SO IMPORTANT. Interruptions in cash flow can destroy a business, even one that is chugging along on every other front. An emergency fund can bridge the gaps that can (and do) occur. A client’s accountant can have a family emergency, checks can get lost in the mail, and sometimes clients are having their own cash flow issues so aren’t paying on time. Whatever the case, knowing that you can play the waiting game without experiencing serious financial repercussions is a huge relief.
6. Money in the bank provides confidence. One unexpected but enormous benefit of the emergency fund is that it gives us confidence. Richard knows he can advocate for the right thing in his job, rather than solely being concerned about keeping a paycheck. I know I can turn down work if it is not a good fit, rather than thinking only of the bottom line. Richard and I have compared this to dating – when desperate, you don’t attract the attention you want. Confidence is very powerful. You’ll also feel great when you read financial checklists and can check off, “Build an emergency fund.” Knowing you did what you should do is an enormous boost.
7. Building an emergency fund models great values for your children. Saving money is hard, especially at the beginning. Talk with your family about what you are doing and why. One analogy that may help young children is discussing a first aid kit. You have band aids ready in case of an accident; you also need to prepare for other unexpected situations. Since children pay more attention to what you do than what you say, let them see you make decisions to save money and you’ll make a big impact on their financial future.
8. An emergency fund creates momentum. Studies have shown that self discipline in one area can increase your control in other areas. Since self employment requires lots of self discipline, getting your emergency fund in place can serve as a launching pad to your new life in more ways than one.

* To see the full text of this and other wonderful poems by Elizabeth Barrett Browning, visit http://www.online-literature.com/elizabeth-browning/.

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