Your table legs are going to break, your tent is going to crumble in a downpour, or your shelves are going to blow off and get accidentally stepped on before you can fetch them. Shit happens. To deal with these kinds of things, my business has an emergency fund, just like I do. It isn’t much, but it’s enough to handle any one of these kinds of things.

Less Stress

Having this kind of plan in place reduces the worry I have about doing outdoor events 4-5 times per week. It’s handled before it’s even an issue. I figured that a good number to have was to save double the cost of my most expensive piece of equipment. My accounting software allowed me to easily set up an account that holds this money separately, even though it’s all in one account at the credit union. Although I rely heavily on my car, I still don’t consider that “business equipment”, but I do track my mileage for tax purposes.

Making It Work for Me

I have a money market account that holds my emergency funds because it has a much higher interest rate than a savings account. I can access the money if I need it, but they’re not designed to be constantly accessed like other kinds of accounts. It’s not inconvenient for me, earns me more in interest, and I’m a member of a local credit union that has a primary purpose of helping underserved residents, families, and communities; they’re helping provide economic opportunities to them as well as the small business and nonprofits that really power communities. That means that while I’m earning interest, I’m also providing the financial backing my credit union needs to help build my community and serve those people who often get overlooked by traditional lenders.

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Final Thought

If you’re a market vendor who does outdoor events regularly, can you cover the cost of a new canopy tent (between $250 and $400 for a really good one, or $60 for a shitty one that falls apart quickly and just generates unnecessary trash; yes, I’m judging you if you do this) without instantly thinking something like, “oh crap, now I need a really good sales day tomorrow because this tent won’t last more than a couple more markets”?

Imagine having that sucky thing happen and you can order one online or buy it from Costco, Sam’s Club, etc, and get right back into the groove without really having to worry about it! For me, the effort of creating and saving the money to an emergency fund was an obvious choice. You don’t have to save the money all at once, but you need to get it filled as quickly as possible to get all the benefits just as fast!

Lesson: Having money when you don’t need it is a million percent better than the other way around!