I was actually doing both, I owe my mom so thank God she's not a bank. I just managed to save up my first $1000 emergency fund, so from August I will simultaneously be saving 6 months worth of living expenses at $50 a month for 1 year & paying off the $1300 that I owe my mom at $100 a month. After I pay that off then I will channel the $100 towards my 6 months worth of living expenses and put $150 monthly. From little things big things grow 😊
@@yeahdude1986 In this job market, if I lose my job it might take me up to a year to find a new job paying what I make or higher. I've found this to be true in the tech sector. I don't want to be desperate to take the first job that comes my way due to not having enough in savings. Also, I am a risk averse person. I would rather have something and not need it than need it and not have it.
If your under 40 and you live in or near a city & your childless DONT GET A CAR !!! I asked 3 different people today about car cost ALL 3 SAID $800/MONTH 😢.
I bought a ten year old used prius and had a decent down payment. It was about $7500 total when it was all paid off, including all the paperwork it required for purchase and the monthly payment was about $150. My full coverage insurance was about $120 for a long while. I will say that I bought it in 2020, so things have gone up, of course. I tried to pay more than the minimum whenever I could, but the minimum expenses were approximately $270 + $50-$80 per month for gas, when I would fill up completely every two weeks, during which I had to commute 20 minutes every day to get to work. Don't get me wrong, this was absolutely a privilege, but it was doable. A lot of this is influenced by my area, but I was basically in a big city, just outside. Having grown up poor and in a household with no car until after I graduated (not mine if course), it blows my mind that ANYONE would EVEN CONSIDER getting a new car or even one that's a year or two old. Especially ones that aren't fuel efficient because either get don't care, don't consider it, don't really grasp how much you'll use regularly, or, and more specific to my car, "pRiUSeS LoOk StUPiD." That's where you get payments/costs that are like $800. You do have to get oil changes maybe every 3-6 mo, and get car tabs once a year. I have sinking funds for these. I'll for it is synthetic, so at a regular oil place it's about $120 to get done, but I have a regular mechanic I've gone to for years who charges me $65. This can wish be done on your own if you're willing. The tabs come in at just under $200 for me. Is it for everyone, no. It's it available to everyone, no. But it's absolutely possible if you're smart about what you're buying, too get it for WAY cheaper than what they're telling you. My advice: buy a good car that's old, that you plan to pay off. Before this I had my first prius, which was a gen 1 2001 model. It had nearly 300,000 miles on it and it finally died due to poor maintenance. (Ice learned a lot about cars, priuses, and priorities since then). I had it until 2020 and got it for $3000, or about $3500 with all the paperwork. She was a beut, I miss her, and she was a great car to make work for me for several years. Had very few problems over that time, it was literally just the engine that died. I've been told by other prius owners and dealerships that they've seen some of them last up to 400,000 miles, from every gen. Didn't mean to make this into a comment about how great priuses are, I just think it helps my point.
This has helped my husband & I so much! Thank you for your videos! We now have $6500 in our emergency fund. A 3 month emergency fund would be $9000, we are getting closer & will hit that goal in 2 months!
Long time saver/debt free... Lost nearly all of my nest egg in the disability process and had to rebuild my EF after I paid off my existing CC debt and medical bills. It's been 13 years since the benefits kicked in and I have had just a couple of "monthly interest" CC payments as I added $125.00 monthly to the EF/CD Ladder. The ladder was 60 months long and in $100-125 increments at one point.. It came in handy too it paid my share of the cataract surgeries that Medicare didn't cover.. Today I am investing my pensions.. about $400 monthly since I have grown accustomed/tolerant of the frugal lifestyle and in two years have 11K in investments and a 10K EF/CD Ladder. I still add to the EF $125.00 monthly.. but it's only a 1/3rd of what I put into investments
Thanks for increasing my knowledge in personal finance and investment, I recently subscribed to your channel. I want to give a big shout-out to all those working tirelessly to earn a living and build wealth during this recession. My husband and I are both retired and debt-free, and we're living smart and frugal with our money. Despite the recession, we're still earning passive income thanks to our savings and investments in the financial market. Investing lifestyle has enabled us to earn a steady monthly income through passive means, and we're grateful for it."
Congratulations on your early retirement. Right now, I could really use some investment advice or tips on investing. Last year I hesitated until the year ended without making any move. This year I decided to try something because I'm very open to ideas on how I can invest. When I see your comment I believe that you have an experience in it that could be of great help to me. Hope you don't mind sharing?
@@martyedgar4678 That's not a problem at all! I would advise you to determine your investment horizon, but I recommend a long-term plan if you are looking to make a lot of profit on your investment. I created a long term investment plan with Claire Martha Magalhaes who helped me invest and manage my investment while getting on with my job without worry.
@@MariaGarcia-gv8hj Thank you for your advice. It's challenging to find a reliable investment advisor, and I appreciate your input. Seeing the successes you've achieved through investing, I would love to have access to your investment advisor's information if you wouldn't mind sharing it.
@@martyedgar4678 I work with *CLAIRE MARTHA MAGALHAES* ,who is based in the United States. If you would like more information about her, you can conduct a search online.
Working with a skilled financial planner can be compared to having a mentor in the field of finance. I used to struggle to invest on my own and ended up losing money, but things changed once I started working with Claire Martha Magalhaes. She played a pivotal role in helping me improve my financial situation. Previously, I relied solely on my job and salary for income, but now I have found ways to generate additional income with ease, which has allowed me to leave traditional employment. Nowadays, I believe that investing is not a choice, but a necessity for anyone who desires financial independence and a good quality of life.
The timing on this video was just perfect! My husband and I are expecting some major life changes in the next year with jobs and family and want to really focus on our emergency fund savings. I agree that $1000 just is not nearly enough. I just opened up our Ally savings account! It was SO easy to open. We are aiming for $10k-$15 for our savings. (We live in CA and basic living expenses plus our debt payments is just so expensive). I’ve been binging your channel and we are using your budget spreadsheet - with a few tweaks! Thanks so much! ❤️❤️❤️❤️❤️
I have an investment property and my home , both have large mortgages.. the investment property is not profitable yet as interest rates are high.. should I keep it? Or sell it and pay off a big church of my home loan ?
Thank you so much for the information you provide! I have learned a lot so far. I just found your channel today and subscribed. I’m really glad I did. Thank you 🙏💕
I struggle with this. I have money saved up. I have debt. I don't want to wipe out all of my money to pay debt. Emergencies do happen. My HVAC system burned up this Summer. It cost $10,000 to replace.
I’m in the same spot, I’m paying my debt but my E-Fund is 20K. I could use that to wipe out my car but I could easily live off that 20K if I needed to and my job can be unstable during tough economic times.
6 to 12 months Emergency fund? seems like every $1k saved is interest expense through the roof. at least I have tons saved away to HSA account for medical. then Congress went and said Medical doesn't count against credit report. they could not say that to Student loans as well? i know, I went down a long lonely road with this one!
I've noticed that my car repair bill has averaged around $1400-$1700. So, that's my target account to save. How much does your repair place charge you per hour, or how much is the flat fee? This is important to know. Good luck
A laymans perspective.. Keep most of the EF in a CD Ladder.. you don't make as much as investing but the security is absolute.. Lots of little steps too, because emergencies aren't always the same size, and you would only liquidate AS needed...
DANG. This was really good!!Thank you so much for clarity. My sister has currently $1000 emergency saved up, I sent her this video, and she immediately cancelled her extra big debt payments back down to the minimums and my sister put small that extra big funds towards building up her emergency saving even further, bigger, and quicker.. My sister thanked me for sending this video and she feels soooo much better now!! MAN-OH-NAN!!! We do not learn this on school!!!
I'm glad you made this video at this time. I'm debating about which one because doing both at the same time is overwhelming. Plus trying to finance my small business 100% in cash. The debt is decreasing but my emergency fund non-existing no sinking funds. I look forward to watching this video as I am getting ready to budget for March
IMO generalized advice typically isn't good advice. There are a lot of factors that come into play; how consistent is your income? How liquid are your assets? How much interest are you paying on your debt? What's your risk tolerance? In my experience, usually the underlying question here is "Should I focus on paying off my credit cards, or start my emergency fund?" My answer would be to pay off your credit cards because if you do have an emergency that comes up... you can use your credit card as a worst case scenario.
No doubts, a good way of growing and saving your money is through investing . You don't need to have much before you can invest."That little money you have now can make you millions if you invest it wisely". I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made..
😊Generally, investing requires higher knowledge. For this reason, It's important to have a solid support structure (financial consultant) to guide you through especially in asset picking. I operate with (Regina Louise Collaro) an investment advisor who partners with a licensed wealth management firm. For the record, the experience has been the best for my finance.She is quite popular for her services so you might have heard of her. She made me financially stable investing through her help, now I earn on a monthly basis through her passive income strategy... So I’ll advise you do get a good Investment advisor for yourself.
I've come across stories of individuals seeking assistance from investment advisors to enhance their financial stability, so it seems like your investment advisor is quite competent. Could you please share more information about this individual
Savings first is best. You don’t get rewarded by these companies for good payment history, so if anything comes up and you can’t make your payments that month they still penalize you and your broke struggling on top of that.
The thing is: "Normal" debts like a bank credit could be paused/delayed and the only costs are the interest rates that will ad up in this month... Other debt like credit card debt or an unpaid bill will explode! Credit cards (at least over here) have like 15-20% interest, unpaid bills will get high fees, then double (inkasso, I think Foreclosure could be the same thing in US? and when a court gets involved you have to pay like five or ten times the thing...) I once was struggling really bad with money and a 24€ unpaid bill cost me more than 500€ in the end... 🤷🏻♀️
Hopefully the YT channel Under the Median can help! They have lots of very creative ways to cut expenses May not be comfortable for awhile but provides a little more security!
40 seconds in and it’s a dipshit who had everything paid for them. “Stop paying down debt and save” in the opening was a massive red flag to this person giving horrible financial advice
have you actually watched his videos on this? if you are actually smart, you would know he says 1k is a STARTING EMERGENCY FUND, not for people to live on
There are a lot of different opinions about what an emergency fund should be. Expenses or salary? I tend to side with the opinion that the emergency fund should be a minimum of 6 months of SALARY as opposed to simple expenses since a job loss is perhaps the greatest emergency, and having the salary considered as opposed to just expenses offers a bit more cushion. Granted, if you have any bill you must pay on a regular basis, that's an expense and should be part of what's in your emergency fund. IMO expenses are all monthly expenses you will incur, not just select ones. I hope that helps.
If you lose your job before you’ve managed to save that emergency fund, your fund isn’t going to cover your debt repayments because they’re not being accounted for as you never included any debt repayments in your first goal, the math doesn’t add up. My advice would be polar opposite to what your video suggests, pay off interest incurring debt first, doing this actually saves you money in the longer term. Focus on being debt free first and foremost, I can’t stress how important this is. An emergency fund doesn’t prevent you from getting into debt if you’re already in debt. Pay your debts first.
As Caleb Hammer likes to say, "Not having an emergency fund IS an emergency!"
Totally
I like how it didn’t take you 5 minutes to get to the point. Thanks for saving time
Had 10k left in debt and 12k in savings just decided to pay off the debt definitely weight off my shoulders and am gonna re build my e fund.
smart! still have 2k left
@@alaska340 thanks! Been debt free for 5 months now! Almost back to the 12k in my savings for the e fund. Cheers!
@@Jedislayer_ congrats!!🎉
I was actually doing both, I owe my mom so thank God she's not a bank.
I just managed to save up my first $1000 emergency fund, so from August I will simultaneously be saving 6 months worth of living expenses at $50 a month for 1 year & paying off the $1300 that I owe my mom at $100 a month.
After I pay that off then I will channel the $100 towards my 6 months worth of living expenses and put $150 monthly.
From little things big things grow 😊
Yes sir....remember Tsunami's that roll over entire countries start as ripples in the middle of the ocean 🙌🏾💪🏿🇺🇸
A months rent here locally ,for a one bedroom is between 1250 to 2000 a month rent alone not including car groceries etc
I have an 18 month emergency fund. I think I will drop it down to 12 months. I am not willing to go any lower.
just wondering, why so much?
@@yeahdude1986 In this job market, if I lose my job it might take me up to a year to find a new job paying what I make or higher. I've found this to be true in the tech sector. I don't want to be desperate to take the first job that comes my way due to not having enough in savings. Also, I am a risk averse person. I would rather have something and not need it than need it and not have it.
rent is $1800, internet is $180, etc.. my numbers are so high!
Exactly!!!
If your under 40 and you live in or near a city & your childless DONT GET A CAR !!! I asked 3 different people today about car cost ALL 3 SAID $800/MONTH 😢.
Or just buy it outright. Don't have car payments.
I bought a ten year old used prius and had a decent down payment. It was about $7500 total when it was all paid off, including all the paperwork it required for purchase and the monthly payment was about $150. My full coverage insurance was about $120 for a long while. I will say that I bought it in 2020, so things have gone up, of course.
I tried to pay more than the minimum whenever I could, but the minimum expenses were approximately $270 + $50-$80 per month for gas, when I would fill up completely every two weeks, during which I had to commute 20 minutes every day to get to work.
Don't get me wrong, this was absolutely a privilege, but it was doable. A lot of this is influenced by my area, but I was basically in a big city, just outside.
Having grown up poor and in a household with no car until after I graduated (not mine if course), it blows my mind that ANYONE would EVEN CONSIDER getting a new car or even one that's a year or two old. Especially ones that aren't fuel efficient because either get don't care, don't consider it, don't really grasp how much you'll use regularly, or, and more specific to my car, "pRiUSeS LoOk StUPiD." That's where you get payments/costs that are like $800. You do have to get oil changes maybe every 3-6 mo, and get car tabs once a year. I have sinking funds for these. I'll for it is synthetic, so at a regular oil place it's about $120 to get done, but I have a regular mechanic I've gone to for years who charges me $65. This can wish be done on your own if you're willing. The tabs come in at just under $200 for me.
Is it for everyone, no. It's it available to everyone, no. But it's absolutely possible if you're smart about what you're buying, too get it for WAY cheaper than what they're telling you.
My advice: buy a good car that's old, that you plan to pay off. Before this I had my first prius, which was a gen 1 2001 model. It had nearly 300,000 miles on it and it finally died due to poor maintenance. (Ice learned a lot about cars, priuses, and priorities since then). I had it until 2020 and got it for $3000, or about $3500 with all the paperwork. She was a beut, I miss her, and she was a great car to make work for me for several years. Had very few problems over that time, it was literally just the engine that died. I've been told by other prius owners and dealerships that they've seen some of them last up to 400,000 miles, from every gen.
Didn't mean to make this into a comment about how great priuses are, I just think it helps my point.
Just fully funded my 12,000 emergency fund!!! No debt and starting to save for a house!
Great job Antonio!! You will have your home for sure!!
Let’s go!
Now that's an Emergency Fund ❤! 💪
This has helped my husband & I so much! Thank you for your videos! We now have $6500 in our emergency fund. A 3 month emergency fund would be $9000, we are getting closer & will hit that goal in 2 months!
Once I get my debt paid down, I want a whole year's worth, which is around 11,000. I should have all my student loans paid off by next May
Long time saver/debt free... Lost nearly all of my nest egg in the disability process and had to rebuild my EF after I paid off my existing CC debt and medical bills. It's been 13 years since the benefits kicked in and I have had just a couple of "monthly interest" CC payments as I added $125.00 monthly to the EF/CD Ladder. The ladder was 60 months long and in $100-125 increments at one point.. It came in handy too it paid my share of the cataract surgeries that Medicare didn't cover..
Today I am investing my pensions.. about $400 monthly since I have grown accustomed/tolerant of the frugal lifestyle and in two years have 11K in investments and a 10K EF/CD Ladder. I still add to the EF $125.00 monthly.. but it's only a 1/3rd of what I put into investments
Being in debt is an Emergency !!!! Get Rid Of It !!!!
I followed Dave Ramsey's baby steps. Life changer
Thanks for increasing my knowledge in personal finance and investment, I recently subscribed to your channel. I want to give a big shout-out to all those working tirelessly to earn a living and build wealth during this recession. My husband and I are both retired and debt-free, and we're living smart and frugal with our money. Despite the recession, we're still earning passive income thanks to our savings and investments in the financial market. Investing lifestyle has enabled us to earn a steady monthly income through passive means, and we're grateful for it."
Congratulations on your early retirement. Right now, I could really use some investment advice or tips on investing. Last year I hesitated until the year ended without making any move. This year I decided to try something because I'm very open to ideas on how I can invest. When I see your comment I believe that you have an experience in it that could be of great help to me. Hope you don't mind sharing?
@@martyedgar4678 That's not a problem at all! I would advise you to determine your investment horizon, but I recommend a long-term plan if you are looking to make a lot of profit on your investment. I created a long term investment plan with Claire Martha Magalhaes who helped me invest and manage my investment while getting on with my job without worry.
@@MariaGarcia-gv8hj Thank you for your advice. It's challenging to find a reliable investment advisor, and I appreciate your input. Seeing the successes you've achieved through investing, I would love to have access to your investment advisor's information if you wouldn't mind sharing it.
@@martyedgar4678 I work with *CLAIRE MARTHA MAGALHAES* ,who is based in the United States. If you would like more information about her, you can conduct a search online.
Working with a skilled financial planner can be compared to having a mentor in the field of finance. I used to struggle to invest on my own and ended up losing money, but things changed once I started working with Claire Martha Magalhaes. She played a pivotal role in helping me improve my financial situation. Previously, I relied solely on my job and salary for income, but now I have found ways to generate additional income with ease, which has allowed me to leave traditional employment. Nowadays, I believe that investing is not a choice, but a necessity for anyone who desires financial independence and a good quality of life.
I've saved $1000. I'm going to pay off my credit card before savings 3 months of expenses solely because I can pay off the credit card in 2 months.
The timing on this video was just perfect! My husband and I are expecting some major life changes in the next year with jobs and family and want to really focus on our emergency fund savings. I agree that $1000 just is not nearly enough.
I just opened up our Ally savings account! It was SO easy to open. We are aiming for $10k-$15 for our savings. (We live in CA and basic living expenses plus our debt payments is just so expensive). I’ve been binging your channel and we are using your budget spreadsheet - with a few tweaks! Thanks so much! ❤️❤️❤️❤️❤️
I like this. You have to start somewhere and everyone’s income and expenses are different.
I am aiming for 5k in my emergency fund, which would be 3 months of living expenses for my husband and I. I am about halfway there 🎉
3 months ? Where you living lol smh
@@jeromeharris5197Somewhere nobody else wants to apparently lol
I’m aiming at 9600. That’s three months for me and I’m using my part time jobs to fund it
What about high interest debt? Aren’t you paying more in the long run the longer you don’t pay those off?
Yes
I have an investment property and my home , both have large mortgages.. the investment property is not profitable yet as interest rates are high.. should I keep it? Or sell it and pay off a big church of my home loan ?
Thank you so much for the information you provide! I have learned a lot so far. I just found your channel today and subscribed. I’m really glad I did. Thank you 🙏💕
All the money fees you mentioned are DOUBLE what you say costs are!!!
I’m aiming for 3-6 months of Emergency Funds.
I’m shooting for $20k in my e-fund to cover an HVAC unit needing to be replaced.
I struggle with this. I have money saved up. I have debt. I don't want to wipe out all of my money to pay debt. Emergencies do happen. My HVAC system burned up this Summer. It cost $10,000 to replace.
I’m in the same spot, I’m paying my debt but my E-Fund is 20K. I could use that to wipe out my car but I could easily live off that 20K if I needed to and my job can be unstable during tough economic times.
Get rid of the debt coward
The best advice i heard
great video, I like to keep 5,500 in a savings account and would like to get to 8,500
If you don't need brick and mortar locations, SoFi has some pretty decent APYs right now. 2.5% for checking and 3.75% for savings.
Brilliant!😀
6 to 12 months Emergency fund? seems like every $1k saved is interest expense through the roof. at least I have tons saved away to HSA account for medical. then Congress went and said Medical doesn't count against credit report. they could not say that to Student loans as well? i know, I went down a long lonely road with this one!
I've noticed that my car repair bill has averaged around $1400-$1700. So, that's my target account to save. How much does your repair place charge you per hour, or how much is the flat fee? This is important to know. Good luck
This was great video!!
Very informative video. Thank you. Subbed and thumbs up!
Great tips. Would you suggest investing the emergency funds in safe stocks?
Many finance experts suggest keeping your emergency fund liquid so that it is quickly accessible, so usually not in stocks.
No!!!
A laymans perspective.. Keep most of the EF in a CD Ladder.. you don't make as much as investing but the security is absolute.. Lots of little steps too, because emergencies aren't always the same size, and you would only liquidate AS needed...
Do you used Ally money market account?
DANG. This was really good!!Thank you so much for clarity. My sister has currently $1000 emergency saved up, I sent her this video, and she immediately cancelled her extra big debt payments back down to the minimums and my sister put small that extra big funds towards building up her emergency saving even further, bigger, and quicker.. My sister thanked me for sending this video and she feels soooo much better now!! MAN-OH-NAN!!! We do not learn this on school!!!
Thank you
I'm glad you made this video at this time. I'm debating about which one because doing both at the same time is overwhelming. Plus trying to finance my small business 100% in cash. The debt is decreasing but my emergency fund non-existing no sinking funds. I look forward to watching this video as I am getting ready to budget for March
Can you save money while paying off low monthly debt from credit card?
Pay off your debt first and that your rid of that Minus and then go fund your future.
IMO generalized advice typically isn't good advice. There are a lot of factors that come into play; how consistent is your income? How liquid are your assets? How much interest are you paying on your debt? What's your risk tolerance? In my experience, usually the underlying question here is "Should I focus on paying off my credit cards, or start my emergency fund?" My answer would be to pay off your credit cards because if you do have an emergency that comes up... you can use your credit card as a worst case scenario.
This is generalized advice.
I stated with the emergency fund first
No doubts, a good way of growing and saving your money is through investing . You don't need to have much before you can invest."That little money you have now can make you millions if you invest it wisely". I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made..
Nice one Vicahmed,any investment tip?. I would love to know how you made it this far
😊Generally, investing requires higher knowledge. For this reason, It's important to have a solid support structure (financial consultant) to guide you through especially in asset picking. I operate with (Regina Louise Collaro) an investment advisor who partners with a licensed wealth management firm. For the record, the experience has been the best for my finance.She is quite popular for her services so you might have heard of her.
She made me financially stable investing through her help, now I earn on a monthly basis through her passive income strategy... So I’ll advise you do get a good Investment advisor for yourself.
I've come across stories of individuals seeking assistance from investment advisors to enhance their financial stability, so it seems like your investment advisor is quite competent. Could you please share more information about this individual
Uno de los mejores consejos de finanzas, feliz de encontrar
Savings first is best. You don’t get rewarded by these companies for good payment history, so if anything comes up and you can’t make your payments that month they still penalize you and your broke struggling on top of that.
1k wasn't meant to be the only starter emergency fund. It was meant to motivate people to up their fund, not sit on it
$9300 // $12000 -- as soon as i finish will be saving for my roof
The thing is: "Normal" debts like a bank credit could be paused/delayed and the only costs are the interest rates that will ad up in this month...
Other debt like credit card debt or an unpaid bill will explode! Credit cards (at least over here) have like 15-20% interest, unpaid bills will get high fees, then double (inkasso, I think Foreclosure could be the same thing in US? and when a court gets involved you have to pay like five or ten times the thing...)
I once was struggling really bad with money and a 24€ unpaid bill cost me more than 500€ in the end... 🤷🏻♀️
Baby steps, #1 $1k emergency #2 pay debt
@@theinevitableend9412 garage sale and go to work
2 years worth of living expenses set aside ??? Whaaaat.. they don’t need to be watching this video..
$18k is my goal and then automatically take 5% post tax paycheck auto deposit so they don’t close my savings account due to inactivity.
Inflation is eating up my savings
Hopefully the YT channel Under the Median can help! They have lots of very creative ways to cut expenses
May not be comfortable for awhile but provides a little more security!
good luck finding rent for $950 in any decent Canadian city..you can barely rent a room for that price
Do you have any financial expert credentials? Or just someone sharing their opinion because you paid off debts?
40 seconds in and it’s a dipshit who had everything paid for them. “Stop paying down debt and save” in the opening was a massive red flag to this person giving horrible financial advice
Dave Ramsey's $1,000 emergency fund is a total joke. That is not enough for a month for ANYONE.
have you actually watched his videos on this? if you are actually smart, you would know he says 1k is a STARTING EMERGENCY FUND, not for people to live on
Do you include debt in your emergency fund? Like student loan payments?
There are a lot of different opinions about what an emergency fund should be. Expenses or salary? I tend to side with the opinion that the emergency fund should be a minimum of 6 months of SALARY as opposed to simple expenses since a job loss is perhaps the greatest emergency, and having the salary considered as opposed to just expenses offers a bit more cushion. Granted, if you have any bill you must pay on a regular basis, that's an expense and should be part of what's in your emergency fund. IMO expenses are all monthly expenses you will incur, not just select ones. I hope that helps.
If your phone is $70, get a cheaper phone plan. I have unlimited call, text, and wifi for $30 per month.
lol yeah stop paying your debt good idea
That is not what she said... stop
Paying off debt is not cool. Stay in debt and be cool.
😂
If you lose your job before you’ve managed to save that emergency fund, your fund isn’t going to cover your debt repayments because they’re not being accounted for as you never included any debt repayments in your first goal, the math doesn’t add up.
My advice would be polar opposite to what your video suggests, pay off interest incurring debt first, doing this actually saves you money in the longer term. Focus on being debt free first and foremost, I can’t stress how important this is.
An emergency fund doesn’t prevent you from getting into debt if you’re already in debt.
Pay your debts first.
If you have debt payments, you would include them. This fictional person is debt free. I don't see anything unrealistic.
Emergency funds should be stored in PUAs of whole life IBC style life insurance. -@InfiniteVelocityUSA