My dad taught me this but it was so hard as a single parent of 3 with 2 at a time in college. I am now retired and it is still hard to keep money earmarked when so many have real needs. Others know you have money and want it. Hard not feeling guilty keeping money in a fund when there are real needs from friends and neighbors in this time. I am not rich but have multiple revenue streams due to working 3jobs all my working life and not having debt. Thank you for all your support and reminding us it is necessary not selfish to have emergency funds.
I live in the USA. My emergency fund is in a savings tool known as a CD or certificate of deposit. I get more interest than in just a regular savings account. And only taxed on the interest when withdrawn. I have a 2 year emergency fund. It might sound like a lot, but as a single person it gives me peace of mind. I do sinking funds in a separate account just like you. My dad didn’t call it a sinking fund, but he taught me about that when I was in college. So grateful for wise parents and their example! Great video 😉
This is the best one yet, so helpful and informational. The amount of emergency fund depends on your household, but is very important to have. We just 6 months 😀 not going to stop ever!! One of the BEST Furgal Channels on RUclips!❤
I'm in Virginia US, 55 yr old debt and mortgage free. I have been unemployed for almost a year. I had a 12 month emergency fund which is what I recommend everyone strive for.
Great video again! I’m on a very low income but I’ve managed to put £1000 into an instant access account as my emergency fund. I’m going to stop paying into while I’m not needing it, so that I can put that monthly amount off my credit card. Once that’s clear I will be debt free. I’ll go back to paying into my emergency fund then. I’ve done this because I’ve been watching your fab videos so thank you both so much. 😍 xx
When you said you don't like to give bad news - I don't look at it as bad news, I look at it as a weather forecast. If it's going to rain, you prepare and bring an umbrella. With finances, it will "rain" in the form of a lost job or illness or whatever, so you save money to prepare. Weather forecast. I keep my emergency fund in a separate savings account from my other sinking funds and my checking account. 3 accounts in total. And I would recommend building up to 1 year worth of money for an emergency fund - I don't have 1 year's worth yet, but I am working on it. Thanks.!
Jane, I loved this video. I was widowed at age 49. I put back into the work force. It was so scary. Thank goodness that we were debt and mortgage free and had a small life insurance. Today’s was spoken with so much truth as to what happens in life. A little preparation makes transitions bearable. Bless you for sharing. LeAnne
I found this the clearest description I have read or heard of an emergency fund. Thank you Jane. There were always a lot of blurred lines here- and although I have been slowly building it, still was not too sure what it’s real purpose was- I threw in an emergency car repair, etc into the purpose. But now it simple and clear!!!!
Thanks for explaining this Jane, I found it a little confusing before, I am working on trying to establish sinking/emergency funds but am on a low income so it's tough, but saving something is definitely better than nothing and will make things that little bit easier if/when these things happen- I loved the chickens at the end of the video too 😊🐔
I didn’t take it as click bait. It’s Wednesday, and that when they talk about money. I knew exactly what it was going to be about. I don’t think they are into playing games with people. They truly want to help.
Loved the talk! Was not mislead by the title. Your smiling face would not have been there if something bad happened. Yes, saving for emergency is what I started doing.. I’m chronically ill, my husband had unexpected health issues last month so yes one starts thinking about things that could happen that are not pleasant. All went well, good insurance that paid most of the surgery.and hospital costs. But in order to feel relaxed for the future, and from a realistic point of view: I am happy to have started such an emergency plan! Thanks for the great tips as always! Rainy greetings from Dordogne to you! 🌺🌺🤗
Hi Jane thanks for your video iv recently had a spell of sickness and realise how important it is to have an emergency fund I’m going to start working on it now back at work
Another very excellent video today, Jane and Michael. Emergency v. Sinking Funds are confusing, but you did a nice job of clarifying which is which, how to build an emergency fund, and when to use it. Definitely passing this on to my younger friends who struggle with budgeting.
Great video! I agree. We have an emergency fund of 5 months that is just for job loss. We put that in an online savings account. Our other savings account is with our local bank and it’s for sinking funds. Our AC breaking, car repairs, medical deductibles, house repairs, education fund, new car fund, etc. We are on baby step 6 and once our mortgage is paid, we will probably build our emergency fund to 12 months.
Great video! Thank you for doing it. I had to use some of my emergency fund to have a dangerous tree cut down. I’m now trying to work on building it back. Slowly but surely.
LOVE the musical chickens and your dog at the end. Instead of having multiple bank accounts we keep all of our sinking funds, emergency and savings ( not bills ) in one account. I have the desired amount for each written down in my Household Planner so it is in sight and in mind! This works well. During Covid and the first lockdown we used our emergency fund when work was temporarily stopped. I thought we had six months worth. It was only enough for three. Luckily work started again and we were ok. My two cents worth is that you probably need more than you think. It was an eye opener and I will be doubling the amount. At least our emergency lasted 3 months. Almost everyone we know dipped into their Super funds (regulated retirement funds in Australia). We didn't. Or any of our other savings.
I live in an area where power loss occurs frequently- my emergency fund is split between cash at home (for when a debit is not able to be used) and savings. I use 3 months for my measure
Here in Australia and in our current situation we have our emergency fund in a mortgage offset account. The mortgage is for an investment property (our mortgage is paid off). Having the offset reduces the interest we pay on the loan, but as it’s in a separate account we have easy access to the money if needed. We have 12 months of expenses held in there.
Here's something to consider according to what is provided in your country and whether or not you are a homeowner. This is what happened to a 50 year old single man I know. His long work contract in a country town finished and he was ineligible to receive the social security payment for the unemployed as his savings account was too large. He had been saving for 12 years since his divorce to get a large deposit for a house. Because it took him 6 months to find a job (not many jobs in his profession came up in his region and because he was highly skilled no-one would even give him an interview for a low-paid job - he applied for everything going) he ended up spending all of his savings to live on and now has no deposit for a house. This is a desperate situation to find yourself in when you are in your 50s, single, and housing prices are skyrocketing. I guess the moral of the story if you live in Australia and countries with similar rules is to get your foot on the property ladder ASAP and then save like crazy to build your emergency fund. I am all for looking after ourselves when we can, and in fact didn't apply for government benefits during the pandemic lockdowns even though I was eligible. But I think this man's situation is devastating when he did all the right things to try and ensure a secure future for himself. If you have a fantastic social security system, perhaps more money could go into retirement savings, plus a fund for the inevitable repairs and breakdowns that occur.
My parents prepaid their funeral expenses with a funeral home. When they passed, everything was decided and paid for. Took a huge load off the family. It was really a “gift”.
My emergency fund is on the good old bankbook with low interest. I can access the money anytime at the bank office, when I show them my passport. But I can't get it in online banking, which is good. My bank is open from Monday to Saturday.
thank you so much for a great video. I live in South Africa and use a one day notice account in my bank for the emergency fund. That way I cannot access it so easily if I wanted to draw with immediate effect. I have to put notice 24 hours before getting my funds, and it works perfect for me.
My goal is $100K in the emergency fund - five years worth of expenses, bare bones budget with a little wiggle room, in the US. We live in the south, so heat in the winter is the major utility expense. During the summers, we get many 100+ degree days, we acclimate to the heat as it builds through the summer, we ventilate the house, use ceiling and floor fans (just like when we were young), we do not use A/C. In truth, we are quite comfortable because we acclimate - it is not like jumping from refrigeration to sweltering heat, back and forth. It is probably better for our health, as well. We have sinking funds that we set aside monthly, as well, which look remarkably like your list. Thanks for a great video.
We keep some money in an account for easy access, but the rest is paid in advance on our mortgage. We can redraw the mortgage and have the money in our account in less than 24 hours. We save much more in interest on the mortgage than we would earn in any savings account. We do this for our emergency fund as well as all our sinking funds for anything we pay less than once a year. Once our mortgage has a zero balance we will save an amount to cover emergencies and sinking funds before we close our mortgage.
Australian? I am 100% offset since December last year thanks to my emergency fund and sinking funds. Apparently I have saved $170k in interest compared to not using redraw/offset.
I live in the US. I have a money market savings account that I monthly contribute to, that is my emergency fund. I have a seperate savings account, that contain my sinking funds. Then I have a checking account for monthly bills. I continuous live off a monthly budget , that includes monthly payments that are filling up sinking funds and adding to my emergency fund. The savings and spending are a continuous cycle. 😁😍 My father used to call an emergency fund, a buffer or a cushion to fall back on when LIFE happens. That was best advice I ever received from my father. One can be less stressed and sleep at night when one knows that they can survive anything that life throws at you. Thank you Jane and Mike for a very informative video. It is nice that you both are spending time making videos to help others from your own experiences. 😀
I have all the funds that you suggest - I have the equivalent of 2 years living costs in my emergency fund - I have long term savings for my next car and multiple sinking funds for all the planned purchases and I also have a superannuation pension that has been paid into for the past 32 years. If I don’t use my emergency fund before I retire in 4 years time - I will keep it to help me live comfortably but frugally - best lesson I ever learned was from my mum - she was good with money and it definitely rubbed off on me but I love watching your videos as they keep me motivated and remind me that I’m on the right path to financial independence and early retirement xx
I live in a very hot humid area is US so an emergency item for me is an air conditioner. As I live alone in a rural area a car repair or replacement is very important. I try to keep funds available as a rule.
I think if you can get together one years worth of basic expenses, that gives peace of mind. This doesn't mean to not continue to fund it during that time, and just sit back and use it all up. But it does mean it gives you a chance to right your unfortunate circumstances. I have my retirement account in place that is invested, I have social security (US) I can claim any time, and I have 2 years worth of expenses in a saving account I can access at any time. This all came about because my husband did pass away several years ago, and I sold our home for a great profit. We were always good with our finances, always preparing for the future.For years others would call us cheap, and say things, but now, my children and I are in a much better place financially then they are. Your video was full of great advice. tfs ✝🥰💗💐🌷🌱🌞🌛☀
I'm from Australia and I use an Everyday account with ING currently for our emergency fund. It's separate to my internet banking so it can't be seen and accessed as readily, but it's there when I need it. I also have an extra credit card that costs $30 for the year as a back up in our retirement. I've never used it but it's peace of mind especially if we are travelling. We previously had a line of credit for our home loan and it was too easy to use I must admit. So I've only had emergency and an actual savings account for about 2 years, but I've always had sinking funds for car, holiday, etc.
Great video, Jane. It's interesting isn't it that Dave Ramseys Baby Step #1 - the beginner emergency fund - has been 1000 £/$/€ since the dude began 30 years ago - I'm pretty sure that 1k won't get you out of the same hole now it would then? So I feel like, as you say, something is always better than nothing, but you now need about a £3k buffer, before you start clearing debts, or thinking of it as a multiple of your living expenses? A lot of real life emergencies top £1-2k these days. Boilers, car write-offs etc?
I just have our emergency fund in a regular savings account that I can have quick access to if there is an emergency. Thank you Jane for teaching me about sinking funds. It’s amazing how less stressed I’ve been since having them in place and funded. I don’t have to juggle things around to fit pet expenses etc. in our monthly budget, as I have the money already set aside in our sinking fund! Still working on funding a 6 month long term savings which will go into a money market account.
I like to have 6 months living expenses set aside. When I was a single parent with a mortgage, I put every spare penny I had onto the mortgage as a form of savings. My mortgage had a no-penalties redraw facility, I think you could redraw up to AUD $10,000 per year. Saving this way also allowed me to reduce the interest on my mortgage. Now that I am married again and mortgage-free, we save in an online account that gives a bit more interest than the pitiful almost-zero our bricks and mortar bank gave us. Thanks for mentioning funerals, that's one we haven't saved for yet.
So relieved you and Michael are okay. I am about 1/2-way to a 6 month emergency fund. Since I'm single and don't have a partner's income to also rely on, I feel more secure with a larger emergency fund. That's on top off my annual rolling sinking funds which I like to think of as protectors of my emergency fund. I keep the funds in an online savings account which is liquid but does pay me 4% on some of the money and 1% on the rest.
I'm not brilliant at saving but about a year ago I started saving the change with my bank which rounds up payments going out to nearest pound.. I'm a pensioner I've now saved over £500 (put into a separate account )but used some of it on an outing so guess nearer 600 initially may help some I think
My emergency fund is strictly for job loss/strike or major illness or injury. I have enough for 6 to 9 months of bare bones expenses. Anything else is covered by my sinking funds. It lives in a tax free savings account so it's liquid if and when I need it. No taxes on it what's so ever. I keep all savings separate from my chequing account.
In the 3 months, 6 months etc emergency fund, when you’re calculating you don’t mention cash needs, food etc, I assume you would have to include it, even if you have a stockpile that would tide you over for a little while. My sinking funds and emergency funds are accessible via online banking to transfer to my everyday account in an emergency.
For my husband and I, we think three months of living expenses is an adequate emergency fund. We do follow Dave Ramsey, but when the virus started we realized a $1000 emergency fund was just not enough. It's not easy to do. It's a sacrifice but it give us some peace to know we can make it for three months if either of us needs to be out of work for illness.
I would suggest premium bonds in the UK as they are quick to cash and there is also the monthly prize draw so a chance to win each month, I put my tax money in as I a self employed this ensures I have it when the bill is due.
🇺🇸 Jane, I am aware of your use of the word redundancy, but many other Americans wouldn’t be. To my fellow Americans, it essentially means you are being laid off, or let go. You are no longer needed for your position because you/it have been made redundant. I hope that helps.
I run my daily expenses through an Amazon cc. I try to save the points for Christmas/ birthday for my daughter. It’s always paid on time. However, the cost of Amazon prime has gone up and I don’t know if it’s really worth it anymore
I'm still confused. I have sinking funds for Christmas, birthdays, car repairs, etc. and I'm beginning to put money aside for an emergency fund. However you also say that a long term fund is the sinking funds? Are they not different?
An emergency fund is a fund you don’t touch unless you have a financial emergency. You need smaller sinking funds for things like Christmas or birthdays. A long term fund is for the bigger things that takes a long time to save for like a car. It can also be for something like a house deposit which can take ten years to save for.
I had actually been wondering why your emergency fund was so large when you have a guaranteed lifetime income via pensions. I am single and have always been financially self-sufficient so I'd never considered the death of a spouse as a financial emergency for most people.
Loss of one pension and one income would plunge either of us into poverty. The survivor would have to find alternatives income, a year’s emergency fund would give the survivor time to adjust.
I am mortgage debt free living in a pension I have 12 emergency fully funded in bank the I have another account I keep savings and another fund sinking funds so far so good I am trying to live off a written budget am becoming a crucial money saving thrifty person not for greed out of necessity
My dad taught me this but it was so hard as a single parent of 3 with 2 at a time in college. I am now retired and it is still hard to keep money earmarked when so many have real needs. Others know you have money and want it. Hard not feeling guilty keeping money in a fund when there are real needs from friends and neighbors in this time. I am not rich but have multiple revenue streams due to working 3jobs all my working life and not having debt. Thank you for all your support and reminding us it is necessary not selfish to have emergency funds.
I live in the USA. My emergency fund is in a savings tool known as a CD or certificate of deposit. I get more interest than in just a regular savings account. And only taxed on the interest when withdrawn. I have a 2 year emergency fund. It might sound like a lot, but as a single person it gives me peace of mind. I do sinking funds in a separate account just like you. My dad didn’t call it a sinking fund, but he taught me about that when I was in college. So grateful for wise parents and their example! Great video 😉
Thanks for sharing
You’re so lucky! No one taught me how to manage money.
Thank you so much, Jane and Mike! Your videos are so very helpful and encouraging. I rewatched this and took notes. Time to get serious!
You can do it!
Thank you so much for your efforts in making these videos. I like being reminded about finances so I can stay on track.
You’re welcome
This is the best one yet, so helpful and informational. The amount of emergency fund depends on your household, but is very important to have. We just 6 months 😀 not going to stop ever!!
One of the BEST Furgal Channels on RUclips!❤
Thanks for watching and your lovely comment
I'm in Virginia US, 55 yr old debt and mortgage free. I have been unemployed for almost a year. I had a 12 month emergency fund which is what I recommend everyone strive for.
Good luck with your job hunt
Great video again! I’m on a very low income but I’ve managed to put £1000 into an instant access account as my emergency fund. I’m going to stop paying into while I’m not needing it, so that I can put that monthly amount off my credit card. Once that’s clear I will be debt free. I’ll go back to paying into my emergency fund then. I’ve done this because I’ve been watching your fab videos so thank you both so much. 😍 xx
Well done that’s a fab achievement in todays cost of living crisis !
Massive achievement there Marianne.
When you said you don't like to give bad news - I don't look at it as bad news, I look at it as a weather forecast. If it's going to rain, you prepare and bring an umbrella. With finances, it will "rain" in the form of a lost job or illness or whatever, so you save money to prepare. Weather forecast. I keep my emergency fund in a separate savings account from my other sinking funds and my checking account. 3 accounts in total. And I would recommend building up to 1 year worth of money for an emergency fund - I don't have 1 year's worth yet, but I am working on it. Thanks.!
Thanks for watching and commenting
Jane, I loved this video. I was widowed at age 49. I put back into the work force. It was so scary. Thank goodness that we were debt and mortgage free and had a small life insurance.
Today’s was spoken with so much truth as to what happens in life. A little preparation makes transitions bearable.
Bless you for sharing.
LeAnne
Sorry for your loss and thanks for sharing
Very useful Jane and Mike Thank you 😊
Glad it was helpful!
I found this the clearest description I have read or heard of an emergency fund. Thank you Jane. There were always a lot of blurred lines here- and although I have been slowly building it, still was not too sure what it’s real purpose was- I threw in an emergency car repair, etc into the purpose. But now it simple and clear!!!!
Thanks very much
Thank you Jane. That's definitely food for thought.
Thanks for explaining this Jane, I found it a little confusing before, I am working on trying to establish sinking/emergency funds but am on a low income so it's tough, but saving something is definitely better than nothing and will make things that little bit easier if/when these things happen- I loved the chickens at the end of the video too 😊🐔
Thanks Bex
Excellent video Jane, thank you!
Great job explaining emergency funds Jane & Mike👍 All sinking funds in place, aiming for 12 months emergency fund 🙂🏴
Hi Jane and Mike great vlog you explained emergency funds perfectly, thank you Anna. 😊
I didn’t take it as click bait. It’s Wednesday, and that when they talk about money. I knew exactly what it was going to be about. I don’t think they are into playing games with people. They truly want to help.
I too thought the same, especially after last week's video. Slightly confused with some of the negative comments I have come across.
Loved the talk! Was not mislead by the title. Your smiling face would not have been there if something bad happened. Yes, saving for emergency is what I started doing.. I’m chronically ill, my husband had unexpected health issues last month so yes one starts thinking about things that could happen that are not pleasant. All went well, good insurance that paid most of the surgery.and hospital costs. But in order to feel relaxed for the future, and from a realistic point of view: I am happy to have started such an emergency plan!
Thanks for the great tips as always!
Rainy greetings from Dordogne to you!
🌺🌺🤗
Hi Jane thanks for your video iv recently had a spell of sickness and realise how important it is to have an emergency fund I’m going to start working on it now back at work
Thanks for the feedback and I hope you are ok now
Another very excellent video today, Jane and Michael. Emergency v. Sinking Funds are confusing, but you did a nice job of clarifying which is which, how to build an emergency fund, and when to use it. Definitely passing this on to my younger friends who struggle with budgeting.
Thanks for the feedback
Thank you Jane and Mike!
Great video! I agree. We have an emergency fund of 5 months that is just for job loss. We put that in an online savings account. Our other savings account is with our local bank and it’s for sinking funds. Our AC breaking, car repairs, medical deductibles, house repairs, education fund, new car fund, etc. We are on baby step 6 and once our mortgage is paid, we will probably build our emergency fund to 12 months.
Great and thanks for sharing
thanks for the information. In the USA and my fund is in a saving account.
Great video! Thank you for doing it. I had to use some of my emergency fund to have a dangerous tree cut down. I’m now trying to work on building it back. Slowly but surely.
Thanks for sharing Lynn
Oh Jane, i do love your videos, been watching for over a year now, well done on all your great content, extremely helpful. Lots of love 😊🐥
Thanks for watching
So glad you are okay, I was worried! Yes, an emergency fund is essential, we started with 1000.
LOVE the musical chickens and your dog at the end.
Instead of having multiple bank accounts we keep all of our sinking funds, emergency and savings ( not bills ) in one account. I have the desired amount for each written down in my Household Planner so it is in sight and in mind! This works well. During Covid and the first lockdown we used our emergency fund when work was temporarily stopped. I thought we had six months worth. It was only enough for three. Luckily work started again and we were ok. My two cents worth is that you probably need more than you think.
It was an eye opener and I will be doubling the amount. At least our emergency lasted 3 months. Almost everyone we know dipped into their Super funds (regulated retirement funds in Australia). We didn't. Or any of our other savings.
I agree that we all need more than we think we do
I live in an area where power loss occurs frequently- my emergency fund is split between cash at home (for when a debit is not able to be used) and savings. I use 3 months for my measure
Here in Australia and in our current situation we have our emergency fund in a mortgage offset account. The mortgage is for an investment property (our mortgage is paid off). Having the offset reduces the interest we pay on the loan, but as it’s in a separate account we have easy access to the money if needed. We have 12 months of expenses held in there.
Ready with a cup of tea, hoping all is well 😊
Here's something to consider according to what is provided in your country and whether or not you are a homeowner. This is what happened to a 50 year old single man I know. His long work contract in a country town finished and he was ineligible to receive the social security payment for the unemployed as his savings account was too large. He had been saving for 12 years since his divorce to get a large deposit for a house. Because it took him 6 months to find a job (not many jobs in his profession came up in his region and because he was highly skilled no-one would even give him an interview for a low-paid job - he applied for everything going) he ended up spending all of his savings to live on and now has no deposit for a house.
This is a desperate situation to find yourself in when you are in your 50s, single, and housing prices are skyrocketing. I guess the moral of the story if you live in Australia and countries with similar rules is to get your foot on the property ladder ASAP and then save like crazy to build your emergency fund. I am all for looking after ourselves when we can, and in fact didn't apply for government benefits during the pandemic lockdowns even though I was eligible. But I think this man's situation is devastating when he did all the right things to try and ensure a secure future for himself. If you have a fantastic social security system, perhaps more money could go into retirement savings, plus a fund for the inevitable repairs and breakdowns that occur.
Another brilliant video, thank you for making it. Never thought about it being used for a funeral before.
So many people end up borrowing money for a funeral
@@FrugalQueeninFrance that is very true.
My parents prepaid their funeral expenses with a funeral home. When they passed, everything was decided and paid for. Took a huge load off the family. It was really a “gift”.
Great video. Thank you. Love from Sweden 😀❤
You’re welcome
Thanks fot a great video. I look forward to them x
Thanks for watching
Thank you for doing this video.
Very helpful.😊
I couldn’t find the link below to how you manage emergency funds.
ruclips.net/video/HkLR3Sh2yrA/видео.html
My emergency fund is on the good old bankbook with low interest. I can access the money anytime at the bank office, when I show them my passport. But I can't get it in online banking, which is good. My bank is open from Monday to Saturday.
Good advice for counting in Down payment of debt! I never seen it before👍
thank you so much for a great video. I live in South Africa and use a one day notice account in my bank for the emergency fund. That way I cannot access it so easily if I wanted to draw with immediate effect. I have to put notice 24 hours before getting my funds, and it works perfect for me.
Thanks for sharing
Low income people can be entitled to a LEP account with their bank. Much higher interest and funds available.
My goal is $100K in the emergency fund - five years worth of expenses, bare bones budget with a little wiggle room, in the US. We live in the south, so heat in the winter is the major utility expense. During the summers, we get many 100+ degree days, we acclimate to the heat as it builds through the summer, we ventilate the house, use ceiling and floor fans (just like when we were young), we do not use A/C. In truth, we are quite comfortable because we acclimate - it is not like jumping from refrigeration to sweltering heat, back and forth. It is probably better for our health, as well. We have sinking funds that we set aside monthly, as well, which look remarkably like your list. Thanks for a great video.
Thanks for watching and sharing
We keep some money in an account for easy access, but the rest is paid in advance on our mortgage. We can redraw the mortgage and have the money in our account in less than 24 hours. We save much more in interest on the mortgage than we would earn in any savings account. We do this for our emergency fund as well as all our sinking funds for anything we pay less than once a year. Once our mortgage has a zero balance we will save an amount to cover emergencies and sinking funds before we close our mortgage.
Thanks for sharing
Australian? I am 100% offset since December last year thanks to my emergency fund and sinking funds. Apparently I have saved $170k in interest compared to not using redraw/offset.
@@michellehiggins8980 yes Australian
I live in the US. I have a money market savings account that I monthly contribute to, that is my emergency fund. I have a seperate savings account, that contain my sinking funds. Then I have a checking account for monthly bills. I continuous live off a monthly budget , that includes monthly payments that are filling up sinking funds and adding to my emergency fund. The savings and spending are a continuous cycle. 😁😍 My father used to call an emergency fund, a buffer or a cushion to fall back on when LIFE happens. That was best advice I ever received from my father. One can be less stressed and sleep at night when one knows that they can survive anything that life throws at you. Thank you Jane and Mike for a very informative video. It is nice that you both are spending time making videos to help others from your own experiences. 😀
Great tips and thanks for sharing
Good job explaining emergency funds. I have one month bare bones budget saved. Working on my second month.
Brilliant and thanks for sharing
I have all the funds that you suggest - I have the equivalent of 2 years living costs in my emergency fund - I have long term savings for my next car and multiple sinking funds for all the planned purchases and I also have a superannuation pension that has been paid into for the past 32 years. If I don’t use my emergency fund before I retire in 4 years time - I will keep it to help me live comfortably but frugally - best lesson I ever learned was from my mum - she was good with money and it definitely rubbed off on me but I love watching your videos as they keep me motivated and remind me that I’m on the right path to financial independence and early retirement xx
You’re doing great
I live in a very hot humid area is US so an emergency item for me is an air conditioner. As I live alone in a rural area a car repair or replacement is very important. I try to keep funds available as a rule.
We live in the Southern US. Agree 💯about air conditioning.
Those are essential
I think if you can get together one years worth of basic expenses, that gives peace of mind. This doesn't mean to not continue to fund it during that time, and just sit back and use it all up. But it does mean it gives you a chance to right your unfortunate circumstances. I have my retirement account in place that is invested, I have social security (US) I can claim any time, and I have 2 years worth of expenses in a saving account I can access at any time. This all came about because my husband did pass away several years ago, and I sold our home for a great profit. We were always good with our finances, always preparing for the future.For years others would call us cheap, and say things, but now, my children and I are in a much better place financially then they are. Your video was full of great advice. tfs ✝🥰💗💐🌷🌱🌞🌛☀
Thanks very much for sharing
I'm from Australia and I use an Everyday account with ING currently for our emergency fund. It's separate to my internet banking so it can't be seen and accessed as readily, but it's there when I need it. I also have an extra credit card that costs $30 for the year as a back up in our retirement. I've never used it but it's peace of mind especially if we are travelling. We previously had a line of credit for our home loan and it was too easy to use I must admit. So I've only had emergency and an actual savings account for about 2 years, but I've always had sinking funds for car, holiday, etc.
Praying that you both are safe and well.
❤❤❤Thank you so much Jane for this vid . it's exactly what I needed x
You’re welcome
We are on our way to save an emergency fund for at least 6 months. At the moment we have saved for three months. Your tipps are great❤!
Congratulations
Great video, Jane.
It's interesting isn't it that Dave Ramseys Baby Step #1 - the beginner emergency fund - has been 1000 £/$/€ since the dude began 30 years ago - I'm pretty sure that 1k won't get you out of the same hole now it would then?
So I feel like, as you say, something is always better than nothing, but you now need about a £3k buffer, before you start clearing debts, or thinking of it as a multiple of your living expenses?
A lot of real life emergencies top £1-2k these days. Boilers, car write-offs etc?
I just have our emergency fund in a regular savings account that I can have quick access to if there is an emergency. Thank you Jane for teaching me about sinking funds. It’s amazing how less stressed I’ve been since having them in place and funded. I don’t have to juggle things around to fit pet expenses etc. in our monthly budget, as I have the money already set aside in our sinking fund! Still working on funding a 6 month long term savings which will go into a money market account.
Thanks for sharing
I like to have 6 months living expenses set aside. When I was a single parent with a mortgage, I put every spare penny I had onto the mortgage as a form of savings. My mortgage had a no-penalties redraw facility, I think you could redraw up to AUD $10,000 per year. Saving this way also allowed me to reduce the interest on my mortgage.
Now that I am married again and mortgage-free, we save in an online account that gives a bit more interest than the pitiful almost-zero our bricks and mortar bank gave us.
Thanks for mentioning funerals, that's one we haven't saved for yet.
So relieved you and Michael are okay. I am about 1/2-way to a 6 month emergency fund. Since I'm single and don't have a partner's income to also rely on, I feel more secure with a larger emergency fund. That's on top off my annual rolling sinking funds which I like to think of as protectors of my emergency fund. I keep the funds in an online savings account which is liquid but does pay me 4% on some of the money and 1% on the rest.
Thanks very much
That's a great interest rate. I just got my statement and the interest rate is .05%
I'm not brilliant at saving but about a year ago I started saving the change with my bank which rounds up payments going out to nearest pound.. I'm a pensioner I've now saved over £500 (put into a separate account )but used some of it on an outing so guess nearer 600 initially may help some I think
You have done well
My emergency fund is strictly for job loss/strike or major illness or injury. I have enough for 6 to 9 months of bare bones expenses. Anything else is covered by my sinking funds. It lives in a tax free savings account so it's liquid if and when I need it. No taxes on it what's so ever. I keep all savings separate from my chequing account.
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In the 3 months, 6 months etc emergency fund, when you’re calculating you don’t mention cash needs, food etc, I assume you would have to include it, even if you have a stockpile that would tide you over for a little while. My sinking funds and emergency funds are accessible via online banking to transfer to my everyday account in an emergency.
Yes I did, it was in screen , a monthly amount for food.
Sorry, I missed the screen bit
For my husband and I, we think three months of living expenses is an adequate emergency fund. We do follow Dave Ramsey, but when the virus started we realized a $1000 emergency fund was just not enough. It's not easy to do. It's a sacrifice but it give us some peace to know we can make it for three months if either of us needs to be out of work for illness.
It is a sacrifice but very necessary
In Canada we have a tax free savings account.
I would suggest premium bonds in the UK as they are quick to cash and there is also the monthly prize draw so a chance to win each month, I put my tax money in as I a self employed this ensures I have it when the bill is due.
Thanks for sharing Claire
🇺🇸 Jane, I am aware of your use of the word redundancy, but many other Americans wouldn’t be.
To my fellow Americans, it essentially means you are being laid off, or let go. You are no longer needed for your position because you/it have been made redundant. I hope that helps.
I run my daily expenses through an Amazon cc. I try to save the points for Christmas/ birthday for my daughter. It’s always paid on time. However, the cost of Amazon prime has gone up and I don’t know if it’s really worth it anymore
Amazon has bank ?
I cancelled my Amazon prime. Wasn't worth it anymore. You can still get free shipping when you spend $25. But I can use my kids' accounts, if need be.
I'm still confused. I have sinking funds for Christmas, birthdays, car repairs, etc. and I'm beginning to put money aside for an emergency fund. However you also say that a long term fund is the sinking funds? Are they not different?
An emergency fund is a fund you don’t touch unless you have a financial emergency. You need smaller sinking funds for things like Christmas or birthdays. A long term fund is for the bigger things that takes a long time to save for like a car. It can also be for something like a house deposit which can take ten years to save for.
@@FrugalQueeninFrance I consider that all sinking funds and I have separate accounts for each need. I definitely need to increase my emergency fund
Hoping the emergency is about emergency funds.
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I had actually been wondering why your emergency fund was so large when you have a guaranteed lifetime income via pensions. I am single and have always been financially self-sufficient so I'd never considered the death of a spouse as a financial emergency for most people.
Loss of one pension and one income would plunge either of us into poverty. The survivor would have to find alternatives income, a year’s emergency fund would give the survivor time to adjust.
I am mortgage debt free living in a pension I have 12 emergency fully funded in bank the I have another account I keep savings and another fund sinking funds so far so good I am trying to live off a written budget am becoming a crucial money saving thrifty person not for greed out of necessity
You both are ok?why you have that title;
I think 3 month emergency fund to start. A good place to put funds is in a fire/water proof safe.
In a bank.
Dramatic title, should of been Emergency Funds surely but i guess it gets the viewers in
Thanks for watching
@@FrugalQueeninFrance Sorry Jane i didn't after the first few mins, there was no need to get people worried and you know that too
@@kazlee9213 All you had to do was look on the community page. Had something awful happened I think there would have been a post there.
@@UnStrungHero Please tell others that then, its ok i've unsubscribed, have a wonderful day bye
@@kazlee9213 Common sense. I shall have a wonderful day.