Emergency Fund vs Investing in Canada: A Simple Ladder
Most beginners don’t need a perfect formula—they need an order of operations. This ladder helps you decide when to hold cash and when to invest.
The ladder
- Build a starter emergency fund.
- Capture any employer match if available (verify).
- Start recurring XEQT contributions.
- Expand emergency fund based on job/income stability.
- Increase investing rate over time.
Quick rule of thumb
If a surprise expense would force you to sell investments, your cash buffer is probably too small.
Educational only, not personalized financial advice.
Ready to automate both habits?
Use separate recurring transfers for emergency cash and XEQT investing.
Get Your $25 BonusCommon mistakes
- Investing aggressively with no short-term cash cushion.
- Keeping all savings in cash for years due to fear.
- Treating emergency fund and long-term investing as either/or forever.