"You shouldn't be good with money because you want to be rich. You should be good with money because you want the freedom to live the life that makes you happy." ABSOLUTELY LOVE THAT
For me one of the most important steps in saving an emergency fund was learning not to let perfect be the enemy of the good. I was so poor that it felt pointless to save anything, because there just wasn't much at all to save. Then I was reading a book where the writer was talking about saving and she said something like, "Even if you can only save $20 a month, then at the end of a year, you'll have $240 saved, and that's not nothing." A light bulb kind of went off. Not to saving $20 a month specifically but just the idea that saving whatever amount I could each month was better than saving nothing at all. Sure, it would take a long time to have enough saved to cover a BIG emergency, but having something saved would still be better than nothing at all.
thatjillgirl this is so true. I started saving in March with 20 dollars each pay check. And when i saw myself hit the $200+ mark it motivated me to save $60 a check. I limit my activities to free stuff like walks or hikes. But it's motivating seeing the numbers increase. You can do it just start anywhere !
I started saving for my emergency fund almost a year ago, and thanks to TFD I've saved up 3 months of living expenses including rent. It's not much, but I already feel more freedom. I'm half way there to my 6 months goal!!
I am a student so I am barely making ends meet with my budget, but I put $10 a week away (+ any little bits of money I make from selling things or doing odd jobs) into a savings account which penalises me for making multiple withdrawals. I can make one free withdrawal a month (you can alter the duration to suit you), but I earn interest on my savings if I don't take anything out so I am not tempted. I know $10 a week isn't heaps but it's better to have something in there and build it up slowly than to have nothing at all.
I'm so lucky my parents built my emergency fund with all the money birthday and christmas gifts and government aids I've received over the years, I don't know if I would be able to build one now as a student. It's definitely not possible for every parent to do that, but it sure helps your kid in the long run
I'm only 19, but because I'm a business major and interested in Finance, I've started taking my personal finances much more seriously. This channel is SO awesome, I've sent it around to my parents, my friends, and my younger siblings! It doesn't matter what age you are, these videos are for everyone! So lucky I found you guys and have been applying these helpful tips!! Keep up the awesome videos!
I’m only 18 and have just now found this channel but I’ve been binge watching it like a good tv show simply because I’ve seen so much financial disaster around me and I’m determined to be different. Not to mention a lot of this stuff anybody could use to make their lives better.
No it doesn't (matter). I'm 48, and I think it's just as useful. I'm really glad to see that you're interested. No regrets, but starting earlier will make a huge difference.
Christmas, insurance premiums and birthday gifts etc are NOT emergencies because they are expected expenses. Christmas is no surprise for anyone. it's always in December and you should save for it seperately.
I'm a young adult(20) that has recently moved out, and I've been worrying about expenses. Not only do your videos help give strategies towards financial goals, but they put my mind at ease and make me feel like every one of these goals is easily achievable with a decent amount of effort. When you share your past mistakes but then show how much you've grown and how you're financially stable it makes me as a viewer hopeful and gain respect for you. Seriously, thank you for these videos. I always watch all of your videos and hope to be as savvy as you are!
When I first got a job at 16 my mom made me save about half of my paycheck. Now I have a hefty savings for emergencies because I have gotten into a habit of saving some each check!
Mariana Martinolich only found out about this channel last month. I leave in Portugal, a small southern european country, where the economie is poor, and no knowledge like this is available.
I'm a college student, living at home fortunately, but right now I'm seriously working hard on saving. It's not a lot but I have $25 automatically transferred once a month to my savings so that helps so I don't forget. I only have about 3 months saved up but I'm still going.
It's interesting for me as a german woman in my twenties to watch your videos. For example all those major emergencies you state early on (unemployment, illness, car) neither apply to me to riun myself. Umemployment and illness both happened to me, but as our insurance system is covering a lot of things that didn't put me in debt. I don't own a car because i live in an area with good public transport. I get the impression through your videos, that its way more complicated for people in the USA to sustain financially mainly because of the debt based payment system (in germany we barely use credit cards) and because both education and health is way more exensive. I also have a bit of debt because of studying bout it's nothing in comparison to the circumstances you have; I don't even have to pay interest and they'll only demand the money if you 're capable to pay. Of course there also exist those student loans like you have but you'll not automatically need them unless you want to go to a private university maybe. I hope that was interesting for you to read.:)
This is why I will never live in America again, even though I am an American. I am currently enjoying a foreign healthcare system that paid for my appendectomy last year, which would have cost 5 to 10 times as much in America, but which I both paid for out-of-pocket and after was reimbursed for 95% of anyway.
After 25 years of having my soul sucked out by a Fortune 500 cesspit, I can vouch that financial flexibility is the greatest gift you can give yourself.
At minimum, your emergency fund should equal the deductibles of all of your insurance policies. What happens if you total your car by running it into your home that time you broke your leg? Then save 12 to 24 weeks' living expenses for your recovery time.
Laura Erwin old school, it's in your written policy, which should have been mailed to you. These days, the insurance provider's website should tell you. Easiest of all, call your agent or provider.
Thanks to TFD, I saved up an emergency fund that saved my booty when my car got totaled and I needed a new one. Now I got none banked up but I'm stoked to build it back up. Thanks TFD for your constant great advice! The way I build mine up is at the end of every month, after I've paid all my bills and paid off all my credit cards, I put all the money in my checking (sans $200 which stays) into my emergency fund. It seems to be the strategy that makes the most sense for me. I pretty inevitably end up adding at least a little every month, and some months I add a LOT and it feels great.
I think it is pretty good, at least to start out...Starting Grad school really pushed me to be more independent especially financially! one of the first things I did was watch TFD videos on budgeting so I could start saving. And I would recommend opening a travel rewards credit card, depending on your filed of study ( at least for mine) traveling is going to become a huge expense so I figured I'd start racking up points to put towards that.
Hello there sweet Chelsea, I just came across your youtube channel and it has changed my life completely, from dealing with laziness to understanding my career path to value money much more. You're like my new best friend. I'm a very lonely person and I'm going thro' some depression right now so finding your channel it's helping me a lot. Please keep doing your amazing job xo. Andy.
Right :/ I was nodding along until the part where Taylor talked about rotating areas of reduced spending. I already do all own-brand, and only public transport. That treat sounded like it would cost like £40, my treat's are like £5...
Luke Treherne absolutely! I found this video insulting and patronizing. It glosses over the working poor and goes straight to the privileged and wealthier middle class young adults who have never had to struggle in their life!
Foster The Words haha the same part stopped me too, I already do have an emergency fund, but I also do all four of the things she said we should rotate, and it's not even because I'm trying to save hardcore
After almost 2 years taking control of my finances I finally separated my EF into a totally separate account.. It has been a game changer because I don't dip into it like a regular savings account.. Outta sight outta mind..
Thank you sooo much ---- all real practical ways with flexibility and having fun too .... " You shouldn't be good with money because you want to be rich, you should be good to have the freedom to live the life that makes you happy "
I truly love the fact that you are bringing a true value to young people. I honestly wish I got this sort of knowledge at home, it would save me from a lot of trouble further in life. Thank you once again!!
I learnt the importance of money giving you freedom to live the life you want this past year. I was able to stay home while pregnant and first 8 months but I had to go back to work as we had not adequately planned for more time off. Love your channel.
I like the different challenge every month thing! Far less daunting than saying "I'm not going to spend any money on xyz for 12 months" or "ever again"!! Thanks!
I've been using Digit per the recommendation of TFD to save up an emergency fund as well as start saving properly. It's been extremely useful! I feel a lot better knowing the money isn't in my savings (which I kept moving money out of) and that it will take small incremental amounts (for me usually anywhere between $1 and $25) up until I reach my minimum. The only downside so far is I haven't figured out how to move funds between the different savings goals set up on Digit.
There is nothing more liberating than an emergency fund. I recently had a $1200 car repair. I was able to pay it right there, without a thought, using my level 1 emergency fund (the extra $1000 I keep in my checking account). I didn't even need to touch my actual emergency fund (24 months of living expenses) I have never once lost sleep worrying about money. I have never once had an unexpected expense I couldnt immediately deal with. The quality of life my emergency fund gives me is better than ANY purchase
I worked for a year after school before attending university while still living with my parents. All the money I earned went into savings/ emergency fund. While this is not a possibility for everyone, it is probably worth considering, if you have the oportunity.
Yes yes and yes! Quite possibly the most important video you have ever made. Financial know how is so important and an emergency fund is essential. I have mine in a high interest but easily accessible account. I love TFD. Terrific channel.
I have my savings account at the same bank as my checking. I have it set up that on the 1st of every month $5 automatically moves into savings. I did this when I wasn't making much so I need to reset the amount. I don't miss it and it's an easy way to do it without having to think. I also make it a priority to "pay myself" every pay check by putting something into savings.
I am now 22 and have a good emergency fund, because saving was something I started when I got my first job. (did it before too, but not specifically for emergencies etc.) I already had to use it once, because my computer had a problem and letting it be repaired was quite expensive. I was glad that although spending money for this was annoying, it wasn't a problem financially, because of my emergency fund. I should be back to 3 months of my monthly income in my emergency fund soon and I think this is going to be enough.
I keep my savings in a different bank than my daily checking account! This was a helpful reminder to keep saving and keep adding to my emergency account as it's really not where it should be.
Hey, could you maybe do a video on how to manage the work load post grad once you have your first job? In other words, the long hours,being taught new things,keeping up with the others who have worked for years and how not to feel overwhelmed by it all??
I've seen some negative comments, the info she's giving is for everyone, save what you can, $5 or $50, just start, be diligent and after 3 months, assess it and continue, it's a process but achievable, side hustle if you have to, remember, you're doing this to create a better financial future for yourself.
This is great advice... if you're on a monthly salary, you could include it along with your direct debits for your outgoings. For example, I get paid at the end of every month and on the 1st of the following month I have all my important DDs go out - bills, rent etc. I include a DD to my savings account in that too. A small amount that I won't miss. Having your 'necessary' cash go out at the beginning of every month means you don't think about it after. Occasionally I've had to transfer some back at the end of the month if I've spent a lot and I get overdrawn, but usually I'm pretty careful. Doing it this way is a really easy way to save *first* and and not *after* - treat it like a bill!
I have a separate savings at a different bank, and it was a very good idea. It helps that this bank is farther, so it's way easier to deposit than withdraw. $400 away from my minimum savings goal.
My emergency fund is instantly accessible and I never touch it. Self control and not spending recklessly all my life goes a long way. So does living in Canada were you have free healthcare and most people have access to sick days.
Samantha P honey living in canada is heaven itself. im currently in a place where mid-class person has to decide on payday its buying toilet paper this month or eating potato.
Americans spend more of their tax dollars on health care they don't actually receive then Canadians do (and they get free health care.) Also our income tax rates are comparable or lower then yours are.
Strange. Who pays for it, then? Scandinavians pay very high taxes for 'free' healthcare, higher education, etc. (45% in Denmark). It's got to come from somewhere. But, then, you certainly don't have the get-involved-in-everybody's-business Military costs that the US does.
I was about to say we don't put billions into military. We pay for it but because it's for all and long established and a bunch of other reasons it's less costly then medicare costs in the US which only covers certain people. Oh and our university isn't free, but it's a hell of a lot cheaper then in the US as well (an average tuition cost of less then 7K per year for undergrad)
Love this video! And its true, once you change your behavior with money then everything starts to make a shift! i used to live paycheck to paycheck and have no reason why i couldn't save any money. I made more than my expenses were and once i woke up, made a budget and started cutting daily coffees out etc, i now am one month shy of hitting my 12 month EF! We all can do it, we just have to want it bad enough :)!
Thank you so much for this! After years of running through my savings over mini emergencies (and because it's so simple to transfer money now), I finally opened an emergency savings account yesterday! Went to the credit union down the street from my primary one and didn't set up mobile banking. Only got an ATM card so I can deposit the money I make from selling like half my possessions. Starting out with my unemployment payments and I'm already a tenth of the way to my goal. I won't be able to reach the ideal amount since I have to move out of California this year, but it'll be amazing to finally have that security. I seriously would not be doing any of this without your videos. Finally realizing that financial stability and independence is an actual possibility for me. It's gonna be hard to budget & save for everything and to leave my home state, but it's gonna lead to a much better future.
It's fundamental for you. This year for me it is. My emergency fund or my safety net was always the stupid credit cards. You pay and if you pay late. You open the window and trash it (interest). For now I just use KOKO Visa Rechargeable Credit Card. It has no fees and no interest. You load it with the amount that you spend per month. I put 100,00 $ per month. It's more easy than having a separate chequing account. You also get some cash back. It help me control my spending.
@ TFD team/ anyone who knows a little more about this topic: should this fund be 3-6 months of living and then you're good or should we add on top another few hundred for other smaller emergencies? Because there's never just ONE thing that goes wrong at a time
Experts disagree. More cushion is always nice, but the more money you're keeping in an emergency fund making almost no interest, the less money you have invested in retirement accounts with decent returns.
Well, I've been unemployed for 10 months & have spent around $5k over living expenses on retraining. So, around $25k? Having blown through my emergency fund last year when I broke my leg, I'm dipping into 401k savings. Stuff happens! At least three months plus all of your insurance deductibles for a start.
I wish you guys would upload more often. Also, can you please talk more about investing and whether it is a good idea to buy real estate and if yes, in what parts of the country.
Most “unexpected” expenses that people use their emergency fund for can been foreseen and budgeted for. Cars and appliances have a limited life, and require regular services and part replacements. You should factor those things in and start putting money aside when the item is new. Most people don’t even budget for registration, insurance, services and new tyres for their vehicle. You shouldn’t need your emergency fund for those things. You can also have a smaller emergency fund if you work out what your fixed expenses are for a 3-6 months rather than going off your income. If it is an emergency then you can go a few months without eating out or getting your nails done haha
This is a great video. I did not realize that an emergency fund is different from an actual savings. I always put away money for savings but having emergency fund requires something more aggressive but it does makes sense to have one. Thank you.
Thanks for this video. Its very helphul. Im starting new job in september and I decided that I want to strat save some money for my future.And I decided not to buy any new clothes or shoes until the end of the winter, because I have enough of them from previous year so this could save me some money. So thank U for your tips! :)
Thank you for the tips I never thought of saving first your emergency fund, and then pay your debt. But you are right you need a little cushion for any unexpected emergency👍🏻
Thank you so much financial diet. I am from India, we have altogether a different point of view regarding Saving and investment...but emergency fund is an universal truth.... being a college graduate this video really motivated me to take a first step towards my saving Thank you so much mam ,😊
Can you do a detailed video on how to balance large debt payments and saving for an emergency fund? I have trouble finding a happy medium between these two huge goals!
What make it difficult for you to make decision around pay your debt and build your EF? For me, always prioritize your EF, at least have 1-3 months of expenses. In the process building your EF, keep your debt payment on minimal payment. Once you have your EF set, you can throw everhthing to pay your debt.
Another thing I think people should know is that it is possible to have too much in an emergency fund/savings. Unless you're saving up for some specific reason (like a down payment on a house), if you have more than about 9 months of expenses in your savings and checking accounts you should transfer the extra to some mid-long term investments so that it can start making interest.
Hello ladies! I was wondering if you could do a video on safe ways to transfer money. Whether that be through apps or via a website. For example, if you go out and have to split the bill w/ a group of friends or you just have to pay someone back but they aren't a business partner and you don't have cash.
I don't physically know how people do this! I work a professional job 43 hours a week, and I spend almost half what I make every month on rent :( The vacancy rate in my city is .4%, and I can't move. I only spend money on bills, food, and rent, and I still only have two grand saved away from taking 10% of my paycheque every month that I can from saving since January. How do people do this?? Tips?
My full time job I work 40 hours then I work 16 hours at another part time job per week. In my free time, I may sell something on eBay or look up any civil lawsuits that I qualify for (there are lots and many people qualify for many). I live in the northeast where things are expensive and live pretty plain and frugal right now but I've been able to put aside 8 months worth of expenses and pay off my student loans. I was pretty crazy in the beginning (eat and sleep the debt free life 24/7) and it drained me but it was so worth it.
I've saved up 1 year of emergency funds to pay the mortgage & expenses. But the Main reason I have my savings at a different bank is if someone ever steals my account info they can only steal from my checking/ Debit card and not have access to my savings. I also never use my saving account ATM card in case of skimmers, I go directly into the bank.
I have one slight point I don't think I agree with, which is make the emergency fund before paying down credit card debt. The reasoning is that the interest rate is so high, you really want to pay as little to credit cards as possible. If an emergency comes up while you're in the phase of paying off your credit card, you can use your credit card. As scary as that may sound, it really isn't much different from the alternative, but in the end you've paid less interest with this strategy since you've focused on paying it down. Just my two cents. Otherwise this is great advice, and that's a pretty minor point.
Want to know more about emergency funds? Check out this 3-Minute Guide: ruclips.net/video/-OAUpu9nhMU/видео.html.
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"You shouldn't be good with money because you want to be rich. You should be good with money because you want the freedom to live the life that makes you happy." ABSOLUTELY LOVE THAT
I'm actually going to frame that and hang it on the wall of my office.
That's it right there.
Kat May l absolutely luv it 2. I can cry just thinking about it. So inspirational
What if I DO want to be rich though? :P
Kat May that really hit me!
For me one of the most important steps in saving an emergency fund was learning not to let perfect be the enemy of the good. I was so poor that it felt pointless to save anything, because there just wasn't much at all to save. Then I was reading a book where the writer was talking about saving and she said something like, "Even if you can only save $20 a month, then at the end of a year, you'll have $240 saved, and that's not nothing." A light bulb kind of went off. Not to saving $20 a month specifically but just the idea that saving whatever amount I could each month was better than saving nothing at all. Sure, it would take a long time to have enough saved to cover a BIG emergency, but having something saved would still be better than nothing at all.
thatjillgirl this is so true. I started saving in March with 20 dollars each pay check. And when i saw myself hit the $200+ mark it motivated me to save $60 a check. I limit my activities to free stuff like walks or hikes. But it's motivating seeing the numbers increase. You can do it just start anywhere !
So helpful, thanks for the post.
I love this, thank you so much!
I started saving for my emergency fund almost a year ago, and thanks to TFD I've saved up 3 months of living expenses including rent. It's not much, but I already feel more freedom. I'm half way there to my 6 months goal!!
I am a student so I am barely making ends meet with my budget, but I put $10 a week away (+ any little bits of money I make from selling things or doing odd jobs) into a savings account which penalises me for making multiple withdrawals. I can make one free withdrawal a month (you can alter the duration to suit you), but I earn interest on my savings if I don't take anything out so I am not tempted. I know $10 a week isn't heaps but it's better to have something in there and build it up slowly than to have nothing at all.
Adele Parli good job! Even $10 a week adds up and you're ahead by not living pay check to pay check!
So true!
I'm so lucky my parents built my emergency fund with all the money birthday and christmas gifts and government aids I've received over the years, I don't know if I would be able to build one now as a student. It's definitely not possible for every parent to do that, but it sure helps your kid in the long run
yup i'm in the same position doing the same, it feels great to see the money bulking up and knowing i have this if i have an emergency
That's 480 per year give or take. Slow and steady! Great job!
Having an emergency fund gives such a piece of mind; it's a total game changer. It's helps inconveniences from becoming crises. Great video!
so true! Emergency funds are so important!
Agreed
Ah damn it this sucks is better than what am I going to do now
I'm only 19, but because I'm a business major and interested in Finance, I've started taking my personal finances much more seriously. This channel is SO awesome, I've sent it around to my parents, my friends, and my younger siblings! It doesn't matter what age you are, these videos are for everyone! So lucky I found you guys and have been applying these helpful tips!! Keep up the awesome videos!
You should read their blog as well, glad they've been able to make videos now to reach more people.
I’m only 18 and have just now found this channel but I’ve been binge watching it like a good tv show simply because I’ve seen so much financial disaster around me and I’m determined to be different. Not to mention a lot of this stuff anybody could use to make their lives better.
No it doesn't (matter). I'm 48, and I think it's just as useful. I'm really glad to see that you're interested. No regrets, but starting earlier will make a huge difference.
Christmas, insurance premiums and birthday gifts etc are NOT emergencies because they are expected expenses. Christmas is no surprise for anyone. it's always in December and you should save for it seperately.
I love the tip on alternating different items in your budget to cut each month. It makes living on a tight budget not feel so terrible.
I'm a young adult(20) that has recently moved out, and I've been worrying about expenses. Not only do your videos help give strategies towards financial goals, but they put my mind at ease and make me feel like every one of these goals is easily achievable with a decent amount of effort. When you share your past mistakes but then show how much you've grown and how you're financially stable it makes me as a viewer hopeful and gain respect for you. Seriously, thank you for these videos. I always watch all of your videos and hope to be as savvy as you are!
When I first got a job at 16 my mom made me save about half of my paycheck. Now I have a hefty savings for emergencies because I have gotten into a habit of saving some each check!
Yo mama is the G.O.A.T
PREACH. Yes, an emergency fund is like paying yourself first - so important!
This might be the most helpful channel on RUclips. Thank you!
this is one of my favourite channels! so inspiring :)
Mariana Martinolich agreed!
Mariana Martinolich only found out about this channel last month. I leave in Portugal, a small southern european country, where the economie is poor, and no knowledge like this is available.
I agree 340%
Totally agree!
I'm a college student, living at home fortunately, but right now I'm seriously working hard on saving. It's not a lot but I have $25 automatically transferred once a month to my savings so that helps so I don't forget. I only have about 3 months saved up but I'm still going.
Great job keep going!!!
GREAT IDEA to rotate your sacrifices month to month!
It's interesting for me as a german woman in my twenties to watch your videos. For example all those major emergencies you state early on (unemployment, illness, car) neither apply to me to riun myself. Umemployment and illness both happened to me, but as our insurance system is covering a lot of things that didn't put me in debt. I don't own a car because i live in an area with good public transport.
I get the impression through your videos, that its way more complicated for people in the USA to sustain financially mainly because of the debt based payment system (in germany we barely use credit cards) and because both education and health is way more exensive. I also have a bit of debt because of studying bout it's nothing in comparison to the circumstances you have; I don't even have to pay interest and they'll only demand the money if you 're capable to pay. Of course there also exist those student loans like you have but you'll not automatically need them unless you want to go to a private university maybe.
I hope that was interesting for you to read.:)
EiLeiter ::::: Es ist nicht genau so! Leben fur Luete hier ist sehr schwer!
That’s because you’re taxed to death to pay for it.
it was interesting. It is more complicated in the United States.
@@wlonsdale1 i don't think they are complaining, tax works for them.
This is why I will never live in America again, even though I am an American. I am currently enjoying a foreign healthcare system that paid for my appendectomy last year, which would have cost 5 to 10 times as much in America, but which I both paid for out-of-pocket and after was reimbursed for 95% of anyway.
After 25 years of having my soul sucked out by a Fortune 500 cesspit, I can vouch that financial flexibility is the greatest gift you can give yourself.
financial flexibility is my biggest dream!
justalurkr I'm sorry you worked in a cesspit.
Sipho Mudau thank you. I'm sorry I worked there long enough that I literally couldn't afford to quit.
Amen
At minimum, your emergency fund should equal the deductibles of all of your insurance policies. What happens if you total your car by running it into your home that time you broke your leg? Then save 12 to 24 weeks' living expenses for your recovery time.
justalurkr yea I have no idea what my deductibles are tho
@laura, it'd be a good idea to figure those out
Laura Erwin old school, it's in your written policy, which should have been mailed to you. These days, the insurance provider's website should tell you. Easiest of all, call your agent or provider.
Wow! This is neat, I have never heard of this one before. Thanks for the tip and where to find the insurance info.
I thought contacting your insurance company would be a logical first step for any adult.
I need a Financial Diet podcast!! Does it exist??? It should
Thanks to TFD, I saved up an emergency fund that saved my booty when my car got totaled and I needed a new one. Now I got none banked up but I'm stoked to build it back up. Thanks TFD for your constant great advice!
The way I build mine up is at the end of every month, after I've paid all my bills and paid off all my credit cards, I put all the money in my checking (sans $200 which stays) into my emergency fund. It seems to be the strategy that makes the most sense for me. I pretty inevitably end up adding at least a little every month, and some months I add a LOT and it feels great.
I have 6 months of expenses saved. Wish it were more, but it's hard to save on a grad student stipend.
Literally same... But I know it is important so I'm cutting down on going out/eating out to save the extra 50-70$ a month.
that's actually a really good amount for an emergency fund
I think it is pretty good, at least to start out...Starting Grad school really pushed me to be more independent especially financially! one of the first things I did was watch TFD videos on budgeting so I could start saving. And I would recommend opening a travel rewards credit card, depending on your filed of study ( at least for mine) traveling is going to become a huge expense so I figured I'd start racking up points to put towards that.
Great job for saving that much! Keep up the good work!
Elizabeth okafor I've been doing that too.
Hello there sweet Chelsea, I just came across your youtube channel and it has changed my life completely, from dealing with laziness to understanding my career path to value money much more. You're like my new best friend. I'm a very lonely person and I'm going thro' some depression right now so finding your channel it's helping me a lot. Please keep doing your amazing job xo. Andy.
Can we have a video targeted towards us minimum wage workers rather those on a middle income salary?
Right :/ I was nodding along until the part where Taylor talked about rotating areas of reduced spending. I already do all own-brand, and only public transport. That treat sounded like it would cost like £40, my treat's are like £5...
im on a fied low income being disabled and ive been building an emergency fund so even poor people can do it, and it gives you a sense of security
Luke Treherne absolutely! I found this video insulting and patronizing. It glosses over the working poor and goes straight to the privileged and wealthier middle class young adults who have never had to struggle in their life!
Foster The Words haha the same part stopped me too, I already do have an emergency fund, but I also do all four of the things she said we should rotate, and it's not even because I'm trying to save hardcore
@@traceej4685 That sounds like a problem with you, and not this video.
After almost 2 years taking control of my finances I finally separated my EF into a totally separate account.. It has been a game changer because I don't dip into it like a regular savings account.. Outta sight outta mind..
Thank you sooo much ---- all real practical ways with flexibility and having fun too .... " You shouldn't be good with money because you want to be rich, you should be good to have the freedom to live the life that makes you happy "
I truly love the fact that you are bringing a true value to young people. I honestly wish I got this sort of knowledge at home, it would save me from a lot of trouble further in life. Thank you once again!!
Coming back to this because I'm starting my EF over again. It's going to be a very long process, but it'll be worth it.
i ESPECIALLY loved the rotation tip! thatll make it so much more an engaging challenge and that definitely aligns with my personality!
im looking at this process right now after im done paying off my medical debt. i really needed this today, thank you!
I learnt the importance of money giving you freedom to live the life you want this past year. I was able to stay home while pregnant and first 8 months but I had to go back to work as we had not adequately planned for more time off. Love your channel.
I like the different challenge every month thing! Far less daunting than saying "I'm not going to spend any money on xyz for 12 months" or "ever again"!! Thanks!
This channel deserves more recognition, they do such amazing work
I've been using Digit per the recommendation of TFD to save up an emergency fund as well as start saving properly. It's been extremely useful! I feel a lot better knowing the money isn't in my savings (which I kept moving money out of) and that it will take small incremental amounts (for me usually anywhere between $1 and $25) up until I reach my minimum. The only downside so far is I haven't figured out how to move funds between the different savings goals set up on Digit.
Bless you for talking about money the way you do.
These videos saved my life ! When I left work my emergency fund is what kept me above water!
There is nothing more liberating than an emergency fund. I recently had a $1200 car repair. I was able to pay it right there, without a thought, using my level 1 emergency fund (the extra $1000 I keep in my checking account). I didn't even need to touch my actual emergency fund (24 months of living expenses)
I have never once lost sleep worrying about money. I have never once had an unexpected expense I couldnt immediately deal with. The quality of life my emergency fund gives me is better than ANY purchase
I worked for a year after school before attending university while still living with my parents. All the money I earned went into savings/ emergency fund. While this is not a possibility for everyone, it is probably worth considering, if you have the oportunity.
Yes yes and yes! Quite possibly the most important video you have ever made. Financial know how is so important and an emergency fund is essential. I have mine in a high interest but easily accessible account. I love TFD. Terrific channel.
I have my savings account at the same bank as my checking. I have it set up that on the 1st of every month $5 automatically moves into savings. I did this when I wasn't making much so I need to reset the amount. I don't miss it and it's an easy way to do it without having to think. I also make it a priority to "pay myself" every pay check by putting something into savings.
Loved this video! Great ideas, my favorite was rotating the places you are saving from! Real advice for real people!
I always look forward to Tuesday evenings, thanks to everyone at TFD.
I am now 22 and have a good emergency fund, because saving was something I started when I got my first job. (did it before too, but not specifically for emergencies etc.)
I already had to use it once, because my computer had a problem and letting it be repaired was quite expensive. I was glad that although spending money for this was annoying, it wasn't a problem financially, because of my emergency fund.
I should be back to 3 months of my monthly income in my emergency fund soon and I think this is going to be enough.
I keep my savings in a different bank than my daily checking account! This was a helpful reminder to keep saving and keep adding to my emergency account as it's really not where it should be.
Hey, could you maybe do a video on how to manage the work load post grad once you have your first job? In other words, the long hours,being taught new things,keeping up with the others who have worked for years and how not to feel overwhelmed by it all??
I've seen some negative comments, the info she's giving is for everyone, save what you can, $5 or $50, just start, be diligent and after 3 months, assess it and continue, it's a process but achievable, side hustle if you have to, remember, you're doing this to create a better financial future for yourself.
This is great advice... if you're on a monthly salary, you could include it along with your direct debits for your outgoings. For example, I get paid at the end of every month and on the 1st of the following month I have all my important DDs go out - bills, rent etc. I include a DD to my savings account in that too. A small amount that I won't miss.
Having your 'necessary' cash go out at the beginning of every month means you don't think about it after. Occasionally I've had to transfer some back at the end of the month if I've spent a lot and I get overdrawn, but usually I'm pretty careful.
Doing it this way is a really easy way to save *first* and and not *after* - treat it like a bill!
I have a separate savings at a different bank, and it was a very good idea. It helps that this bank is farther, so it's way easier to deposit than withdraw. $400 away from my minimum savings goal.
I love your channel Chelsea. I am constantly inspired by your advice, most of which i NEVER received when i was in my 20s. Thanks again.
My emergency fund is instantly accessible and I never touch it. Self control and not spending recklessly all my life goes a long way. So does living in Canada were you have free healthcare and most people have access to sick days.
Samantha P honey living in canada is heaven itself. im currently in a place where mid-class person has to decide on payday its buying toilet paper this month or eating potato.
I don't think it's actually 'free', is it? Don't you pay much higher taxes that go towards national healthcare?
Americans spend more of their tax dollars on health care they don't actually receive then Canadians do (and they get free health care.) Also our income tax rates are comparable or lower then yours are.
Strange. Who pays for it, then? Scandinavians pay very high taxes for 'free' healthcare, higher education, etc. (45% in Denmark). It's got to come from somewhere. But, then, you certainly don't have the get-involved-in-everybody's-business Military costs that the US does.
I was about to say we don't put billions into military. We pay for it but because it's for all and long established and a bunch of other reasons it's less costly then medicare costs in the US which only covers certain people. Oh and our university isn't free, but it's a hell of a lot cheaper then in the US as well (an average tuition cost of less then 7K per year for undergrad)
This is an unbelievably good and helpful video. Thank you for this.
Great advice! I have a 6 month emergency fund and this was achieved with regular savings and side hustles.
“Not as a punishment, but as a gift your giving yourself” I like that. 👌🏼
Love this video! And its true, once you change your behavior with money then everything starts to make a shift! i used to live paycheck to paycheck and have no reason why i couldn't save any money. I made more than my expenses were and once i woke up, made a budget and started cutting daily coffees out etc, i now am one month shy of hitting my 12 month EF! We all can do it, we just have to want it bad enough :)!
Thank you so much for this! After years of running through my savings over mini emergencies (and because it's so simple to transfer money now), I finally opened an emergency savings account yesterday! Went to the credit union down the street from my primary one and didn't set up mobile banking. Only got an ATM card so I can deposit the money I make from selling like half my possessions.
Starting out with my unemployment payments and I'm already a tenth of the way to my goal. I won't be able to reach the ideal amount since I have to move out of California this year, but it'll be amazing to finally have that security.
I seriously would not be doing any of this without your videos. Finally realizing that financial stability and independence is an actual possibility for me. It's gonna be hard to budget & save for everything and to leave my home state, but it's gonna lead to a much better future.
It's fundamental for you. This year for me it is. My emergency fund or my safety net was always the stupid credit cards. You pay and if you pay late. You open the window and trash it (interest). For now I just use KOKO Visa Rechargeable Credit Card. It has no fees and no interest. You load it with the amount that you spend per month. I put 100,00 $ per month. It's more easy than having a separate chequing account. You also get some cash back. It help me control my spending.
@ TFD team/ anyone who knows a little more about this topic: should this fund be 3-6 months of living and then you're good or should we add on top another few hundred for other smaller emergencies? Because there's never just ONE thing that goes wrong at a time
Experts disagree. More cushion is always nice, but the more money you're keeping in an emergency fund making almost no interest, the less money you have invested in retirement accounts with decent returns.
Well, I've been unemployed for 10 months & have spent around $5k over living expenses on retraining. So, around $25k? Having blown through my emergency fund last year when I broke my leg, I'm dipping into 401k savings. Stuff happens! At least three months plus all of your insurance deductibles for a start.
I wish you guys would upload more often. Also, can you please talk more about investing and whether it is a good idea to buy real estate and if yes, in what parts of the country.
“So I can sit there alone, and cry in the dark, it’s ah-may-zing.” 😂😂😂👏🏽👏🏽👏🏽 you redeemed any judgements i had of you.
Most “unexpected” expenses that people use their emergency fund for can been foreseen and budgeted for.
Cars and appliances have a limited life, and require regular services and part replacements. You should factor those things in and start putting money aside when the item is new.
Most people don’t even budget for registration, insurance, services and new tyres for their vehicle. You shouldn’t need your emergency fund for those things.
You can also have a smaller emergency fund if you work out what your fixed expenses are for a 3-6 months rather than going off your income.
If it is an emergency then you can go a few months without eating out or getting your nails done haha
This is a great video. I did not realize that an emergency fund is different from an actual savings. I always put away money for savings but having emergency fund requires something more aggressive but it does makes sense to have one. Thank you.
Thanks for this video. Its very helphul. Im starting new job in september and I decided that I want to strat save some money for my future.And I decided not to buy any new clothes or shoes until the end of the winter, because I have enough of them from previous year so this could save me some money. So thank U for your tips! :)
After saving my first $1,000, I treated myself to a $1,000 vacation!
Am I doing it right?
Antenox :::: 😀😅😂..!!!!!
No
Sounds like a valid emergency to me!
Hmmmm sounds fine to me, enjoy !!
I’m in love with this channel! I binge watch ALL the videos!!! 😭😭😩😩
Thank you for the tips I never thought of saving first your emergency fund, and then pay your debt. But you are right you need a little cushion for any unexpected emergency👍🏻
Having an emergency fund boosts up your overall confidence!
I started a fund a few months ago and kinda stalled out, this was a timely video to reignite my motivation :)
Great tips - love changing up each month what your doing to help save.
I'm really happy that I saved most of the money i got as gifts when I graduated as my emergency fund
Love your idea of giving yourself a treat when you reach a savings goal 😊 I love this channel!
I really love this one. Also to rotate what I cut off in my budget would help a lot.thank you
I am Chelsea when she has that salted popcorn and crying in an indie cinema.
Thank you so much financial diet. I am from India, we have altogether a different point of view regarding Saving and investment...but emergency fund is an universal truth.... being a college graduate this video really motivated me to take a first step towards my saving
Thank you so much mam ,😊
Can you guys do a video about what a reasonable closet should have? You guys seem to have a minimalist style and I'd like to hear your ideas :)
Ok, I need an emergency fund. Right now! I'm so hyped up!!!
Can you do a detailed video on how to balance large debt payments and saving for an emergency fund? I have trouble finding a happy medium between these two huge goals!
What make it difficult for you to make decision around pay your debt and build your EF? For me, always prioritize your EF, at least have 1-3 months of expenses. In the process building your EF, keep your debt payment on minimal payment. Once you have your EF set, you can throw everhthing to pay your debt.
I've had to use my Emergency Fund twice in the past year. Thanks TFD:)
Another thing I think people should know is that it is possible to have too much in an emergency fund/savings. Unless you're saving up for some specific reason (like a down payment on a house), if you have more than about 9 months of expenses in your savings and checking accounts you should transfer the extra to some mid-long term investments so that it can start making interest.
Where do you guys live? Everything looks great. The couch, the windows the buildings outside...Chicago?
your skin looks awesome in this vid! please share your routine :D
Working on a second emergency fund, and coming back to this video.
So motivating!!! Thanks!!
Raine Anne agreed!
Great stuff! I started contributing to my non-invested TFSA a year ago and made it up to 4 months savings already.
Financial diet, you have really great videos, love them. Chelsea is a great video host 👍
I love your videos, and I love that you put the ads at the end of the videos so I don't have to watch them :P
I was waiting for this - thank you as always! Best wishes from Berlin :-)
Hello ladies! I was wondering if you could do a video on safe ways to transfer money. Whether that be through apps or via a website. For example, if you go out and have to split the bill w/ a group of friends or you just have to pay someone back but they aren't a business partner and you don't have cash.
Your videos are helping me a lot! Thanks for sharing your thoughts and ideas ❤️
Thanks a lot! I'm studying financial and English in one time. I'm from Ukraine.
I don't physically know how people do this! I work a professional job 43 hours a week, and I spend almost half what I make every month on rent :( The vacancy rate in my city is .4%, and I can't move. I only spend money on bills, food, and rent, and I still only have two grand saved away from taking 10% of my paycheque every month that I can from saving since January. How do people do this?? Tips?
squeekytoy123 roommate to split the rent with?
already all over it :(
It sounds like you live in a place with very high cost of living. The solution may be to move to a location with lower cost of living.
Extra job. Sorry to say it but it's true
My full time job I work 40 hours then I work 16 hours at another part time job per week. In my free time, I may sell something on eBay or look up any civil lawsuits that I qualify for (there are lots and many people qualify for many). I live in the northeast where things are expensive and live pretty plain and frugal right now but I've been able to put aside 8 months worth of expenses and pay off my student loans. I was pretty crazy in the beginning (eat and sleep the debt free life 24/7) and it drained me but it was so worth it.
This is such a helpful video, thank you Chelsea!
Mini bottle of wine & salty popcorn. 😂 I love. Chelsea♥️
I just want to thank you! Thanks to you I'm learning a lot and putting my life together :) you are amazing
SHE IS AMAZINGGGGG
I love this channel so much omg
Thank you Chelsea. I wish I knew this earlier. Nevertheless, better late than never.
I've saved up 1 year of emergency funds to pay the mortgage & expenses. But the Main reason I have my savings at a different bank is if someone ever steals my account info they can only steal from my checking/ Debit card and not have access to my savings. I also never use my saving account ATM card in case of skimmers, I go directly into the bank.
I would love some input on (or a video on) how to determine the size of your emergency fund.
I'm gonna keep watching this to remind myself how important this is haha.
I have one slight point I don't think I agree with, which is make the emergency fund before paying down credit card debt. The reasoning is that the interest rate is so high, you really want to pay as little to credit cards as possible. If an emergency comes up while you're in the phase of paying off your credit card, you can use your credit card. As scary as that may sound, it really isn't much different from the alternative, but in the end you've paid less interest with this strategy since you've focused on paying it down. Just my two cents. Otherwise this is great advice, and that's a pretty minor point.
Great video!!!!! Thanks Chelsea!!