Financial Literacy Month Series: Let’s Break Down Buzzwords – What to Save, When to Invest, and How to Be Ready for Anything
by Anoushka Mirchandani, Founder & CEO
It started with a sentence I’ll never forget:
“I have no idea how we’re going to make it through this.”
That’s what my dad said during the 2008 financial crisis. He had a house, three kids, and a stable income—until he didn’t. The recession hit hard, and he suddenly found himself without steady work, scrambling to cover basic expenses.
My dad took a job flying back and forth from New York to St. Martin to stock a store. He was gone 15 days a month. We didn’t talk about it much, but the strain was there—emotional, financial, and very real.
And it stuck with me: You don’t wait for the storm to build your safety net.
So this week, we’re talking about how to be ready for life’s “what ifs.”
Because financial literacy isn’t just about growing your money—it’s about protecting what you’ve already built.
Emergency Fund: Your First Line of Defense
Let’s break it down:
It’s money set aside for the unexpected—job loss, surprise bills, car repairs, or (in my dad’s case) a recession.
Stuff you can’t plan for, but should expect.
Why it matters:
It gives you breathing room. Life is long and full of curveballs—and while you (hopefully) won’t need to sell a kidney, an emergency fund keeps you from draining your savings or going into debt just to stay afloat.
Real-life example:
Lose your job but have three months saved? That’s breathing room—not panic. Just time to regroup.
Top tip
Start with a mini goal: $500 or $1,000. Then build up to 3–6 months of essential expenses.
Keep it in a separate savings account so you’re not tempted to spend it.
Saving vs. Investing: Know the Difference
Here’s the deal:
Saving is for the near future.
Investing is how you build long-term wealth—future you’s dream life.
Why it matters:
You need both. Saving helps you handle today. Investing helps you grow your money for tomorrow.
Real-life example:
That vacation you want to take this year? Save for it.
That retirement 30 years away? Invest for it.
A good rule of thumb: If you’ll need the money in the next 5 years, save it.
If it’s more than 5 years away, invest it.
Top tip
Once your emergency fund is solid, start putting extra money into low-cost investment accounts.
Even $50/month can add up thanks to (you guessed it) compound interest.
Compound Growth: The Quiet Power Move
Let’s simplify it:
Compound growth means your money earns money—then that money earns even more.
It snowballs. That’s why starting early matters more than starting big.
The more time your money has to grow, the more powerful the results.
Real-life example:
If you invest $100/month at a 7% return starting at age 25, you’ll have over $250,000 by age 65.
Wait just 10 years to start? You’ll end up with about half that. Half!
Top tip
Time is your biggest asset. Start now, even if it’s small. Future you will thank you.
Final Thoughts: Three Lessons In, and You’re Building Real Resilience
If you’ve ever felt like saving or investing was overwhelming or “not for you,” you’re not alone.
Nearly half of Americans don’t hold any investment assets—and a third say it’s because they don’t understand how investing works.
But here’s the truth: you don’t have to be rich to be ready.
Start small. Start curious. Just start.
These lessons aren’t just about building wealth—they’re about giving yourself options, peace of mind, and the confidence to handle whatever life throws your way.
Stay tuned:
Next week, we’re tackling the final part of our Financial Literacy Month series—how to actually protect and prioritize what matters most.
Think you’re ready to start investing now?
My work here is done (for this week). But don’t forget—there’s more to learn.
Join the SIMMER waitlist and keep learning about money in a way that actually makes sense.
