Your S.W.A.N. Number
How Much is Enough?
How Much is Enough? This is a question many wrestle with, wondering how much they should save in their emergency funds. Online advice varies greatly, and it’s easy to feel overwhelmed. What’s “right” for one person may not be right for you.
The truth is, both extremes—saving too little or too much—can create stress, and as we know, stress of any kind can lead to negative health consequences. That’s why your financial foundation shouldn’t be built on rigid benchmarks. It should be built on clarity, peace, and personal alignment.
This is exactly what the S.W.A.N. approach offers. It’s a peace-centered way to determine our unique financial foundation numbers. The number that will enable you to Sleep Well At Night. It isn’t just about dollars. It’s about confidence, calm, and knowing you’ve prepared wisely.
How to find your S.W.A.N. Number
Begin by saving for your cash emergency fund until you reach a point of discomfort. This is your S.W.A.N. number for your cash emergency fund. Keeping enough cash on hand for emergencies, but not so much that it would be devastating if it were lost, destroyed, or stolen.
Next, build your fully funded emergency reserve in an interest-earning account with quick access, but be mindful of risks, such as losing value to inflation and the reliability of your banks. Save until you reach a point where you feel secure but not overly exposed to potential risks such as value loss, potential bank failures, or FDIC/NCUA limitations. This is your S.W.A.N. number for your fully funded emergency reserves.
This approach can be applied to various aspects of your financial portfolio, guiding your decisions on diversifying funds across assets, banks, and even preparing supplies.
*Note: If you share finances with a significant other and are unable to agree on your S.W.A.N. number, usually the one who wants to save the most wins, as the stress of having too little saved is generally greater than the stress of having too much saved. Be sure this is a discussion you are having together, not just once, but regularly. Financial peace can be more than just numbers—it’s about both of you feeling seen, secure, and supported.
Annual Financial Checkup
Finding your S.W.A.N. number is also the central theme behind the Annual Financial Checkup course/workbook I created. Working through this resource will guide you toward finding your personal “Sleep Well At Night” number. One that reflects not just on financial benchmarks, but also on emotional clarity, confidence, and peace.
