THE FOUNDATION #5 - Emergency Fund 101: Why Every Firefighter Needs One

You Wouldn’t Show Up Without Your Turnout Gear.

So Why Are You Facing Financial Fires Without Protection?

In the fire service, we prepare for worst-case scenarios, even if they rarely happen.

We carry bailout bags. We train RIT drills. We back each other up.

But most firefighters don’t carry financial protection when life hits the fan. And when it does?

• Your truck breaks down
• Your kid needs emergency dental surgery
• You get hurt off duty and your side income dries up
• Your spouse loses their job
• Your furnace dies in January

That’s your financial fire.
And if you don’t have an emergency fund, you’re walking in without a hose.

What Is an Emergency Fund?

An emergency fund is cash set aside to cover unexpected expenses or income loss, without going into debt.

It’s not for new tools, vacations, or deals at Home Depot.
It’s for things you didn’t see coming and have to deal with now.

Think of it like your financial SCBA. It’s there to keep you breathing while you sort things out.

Why Firefighters Especially Need One

You might think: “I’ve got a good job, pension, union -  I’m fine.”

But here’s why first responders need emergency funds just as much, if not more, than anyone else:

1. Shift Work = Variable Spending

Long stretches off can lead to unplanned expenses. You’re off more, so you’re out more.

2. Overtime Isn’t Guaranteed

Many firefighters budget as if OT is permanent. But what if your hours drop?

3. High Physical Risk

A back injury, off-duty accident, or surgery can interrupt your ability to earn side income or work second jobs.

4. You Don’t Want to Drain Retirement Early

Raiding your pension, RRSP, or 457 plan early = taxes, penalties, and long-term losses.

An emergency fund keeps you from making panic decisions that cost way more later.

How Much Do You Need?

The answer depends on your situation but here’s a general rule:

Beginner Goal:

$1,000 in a basic starter fund
Enough to stop you from putting emergencies on a credit card.

Next Goal:

3–6 months of essential expenses
This includes:

• Rent/mortgage
• Groceries
• Utilities
• Insurance
• Car payments
• Minimum debt payments
• Child/pet costs

Let’s break that down with an example:

You’d aim for:

• $10,500 for 3 months
• $21,000 for 6 months

Start small. Build fast. Stay ready.

Where Should You Keep It?

Your emergency fund should be:

• Separate from your daily account (so you don’t “accidentally” spend it)
• Instantly accessible (cash or high-interest savings — not tied up in investments)
• Not mixed with your investing accounts

Good options:

• High-interest savings account (Ally, EQ Bank, Wealthsimple Save, etc.)
• Credit union account
• Online bank separate from your main chequing

Avoid investing your emergency fund.
The market could drop right when you need that cash.

How to Build It (Fast)

1. Start With a Target

Pick a real number. Even $500 is better than zero.

2. Use Side Hustle or OT Money

Every extra shift or side job = fuel for your fund. Build the buffer first.

3. Automate It

Set up a recurring transfer on payday. Even $50 at a time adds up fast.

4. Sell Gear You Don’t Use

Got extra equipment, tools, or fitness gear? Convert clutter to cash.

Fireground Example: Emergency Fund Saves the Day

"A captain in our crew blew his transmission right after Christmas. $3,600 repair. Instead of putting it on credit, he had his emergency fund ready. No stress. No interest. No delay. That’s peace of mind."

This Is What Real Financial Readiness Looks Like

You wouldn’t wait until you’re inside a working fire to check your SCBA.
You wouldn’t go on a roof with no ladder for egress.

So stop living paycheque to paycheque with no plan for life’s curveballs.

Build the buffer. Carry the bailout bag. Protect your finances.