“By failing to prepare, you are preparing to fail.” — Benjamin Franklin
This page is one of the most important parts of the guide, as it prevents you from ever adding debt you can't afford. Large debt is the #1 reason most poor people are not millionaires [1].
If you skipped the previous page because you don't have any current debt, let's catch you up. John automatically pays 250 dollars a month towards his student debt from his average monthly income of about $1545.
This leaves him with $1295 a month for his monthly expenditures, and he needs clarification on why he needs an emergency fund.
John—and you—need an emergency fund because you never know when tragedy will strike. In the next year, John and/or you might suddenly need to pay for a huge medical bill, a car crash, or even deal with suddenly being laid off.
Additionally, an emergency fund will allow John and you to keep automatically investing in the worst-case scenario so that you become a millionaire with or without luck.
For the above reasons and many more, an emergency fund is essential. With it, John can rest easy at night, knowing that he will be prepared for it no matter what life throws at him. The same should be said for you.
Step 10: Automating your emergency fund
For John, this is what his recommended emergency fund numbers look like:
Since John still lives with his parents and they pay for most of his outings—lucky bastard—he decided to save the minimum amount of $1,500 and complete his emergency fund in two years. That means that John must add about $63 ($1,500 ÷ 24 months ≈ $63) to his emergency fund account every month.
As mentioned before, if you have an unstable source of income or are prone to injury, you should aim for the higher end of your recommended emergency fund amount and complete it faster.
To ensure that John creates his emergency fund within his two-year timeline, he automatically transfers $63 from his checking account to his savings account.
John's emergency fund is in a high-interest savings account, so even though it sits untouched, he still makes money from it.
If you're curious about how he's making that extra cash, go to the 
Storing Your Wealth page and then return here to continue your progress.
If you're happy with your current emergency savings account, keep reading!
An early celebration
In about two years, John will have completed his emergency fund, and in about four years, he will be debt-free in education! As you have also set up your automatic debt and emergency fund payments, you can pat yourself on the back for the joy your future self will feel when debt-free.
Both you and John are now eligible to become millionaires automatically! The time has come for that sweet, sweet compound growth.
5. Automating Your Debt Away
7. Setting Up For Success