Eliminate the confusion

Dear Dave,

I work for a construction company. The closer we get to winter, the more I think about work slowing and my income dropping. I’ve had couple of winters in the past where things were pretty lean. Do you think I should begin building an emergency fund for the slow times?

Carl

Dear Carl,

I love that you’re thinking about the future. I also think it’s great that you’ve learned from past mistakes and are determined not to repeat those mistakes.

You’ve got a smart idea, but you’re going to have to get on your horse to make something happen for this winter. Also, you might want to think about calling it something other than an emergency fund. How about your offseason fund? You might think I’m being silly playing with the name, but hear me out. This sort of saving isn’t really for emergencies, is it? It’s a budget issue, because you’re planning and setting aside cash leading up to something you know is coming.

Remember, we’re not talking about some random amount of money. It’s an exact amount that you can budget for accordingly. This winter you may have to think about picking up a side job, depending on the weather and other circumstances. But after that, it’ll be a simple matter of planning ahead for the down time and setting aside something each month to see you through!

Dave