My wife and I had a 3 month emergency fund and then she got cancer last year. Our savings would not have made a dent in that. Thank God for Health insurance and Credit cards. (BTW she is in remission and we have completely paid off our credit cards)
A few years back we had a similar situation, and yeah. Cash savings wasn't going to put a dent in those bills. A lot went on credit cards for 2 years. And thankfully we managed to pay them off within a year. Sure, credit card rates are awful... But I called around and got several thousand at a lower fixed rate for a period of time, and that ended up being much more reasonable 6% instead of 20%+ Was it ideal? Oh, heck no. But a very viable option during a very extreme time when I didn't have much in the way of assets yet. I was more interested in how long my savings could sustain the minimum payments than paying for all of the bills out of pocket. If/when we have simalar events in the future I hope to be much more prepared.
Hope she reaches her 5 year remission. We're retired and also hold a 6-month income emergency cash savings. Sure you can invest it, but that will take longer for access, we have 3 vehicles all over 15 years old. It's great to have cash when you have a breakdown.
Honestly, I really do think this is a mindset problem for many Americans, not a measure of financial strain. I remember one of Caleb Hammer's guests literally got so confused when he brought up the idea of having $1000 just sitting in an account as a basic emergency fund. She literally did not understand the concept of having money sitting around that wasn't already assigned for spending. Like, she could grasp it when she knew a future expense was coming, but the idea of trying to preempt an emergency by having money set aside just didn't make sense in her mind.
This was the very mindset I used to have (not long ago). I have always had excellent credit, so I became dependent on the idea that I could always fall back on credit cards. You’d be shocked how hard it is to break free from this mindset for someone who is stuck in it. It’s less about knowledge, and instead it manifested almost like an addiction.
I hope you guys realize how much you have changed my life even though I started at 25 now 28 I’ve seen returns that are noted in my head. Thanks for keeping me educated on finances.
love you guys. you keep me on track. I fit the stereotype perfectly, born 1962: I take $400 cash every two weeks to pay for everything; gas, food, incidentals. i dont like being tracked everywhere i go. Zero debt; Retire this July; can go the next 16 years (includes every single expense, every dime) on SS & pension (& cash) before ever (having to) touching my fat & happy TSP.
That federal retirement tho! I'm a bit earlier in my journery, but am also looking to get out at 57 instead of 62, Other than the 10% bump, what made you want to do the later retirement?
Quick comment on insurance shopping: at least for car insurance, premiums are skyrocketing this year. After being quoted for our new policy, we did shop around, but everything was even more than what we were quoted. They actually informed us that the only reason ours wasn't even more of an increase is because we have stayed with them for 10+ years.
The other thing to think about with the health care question is if you have siblings. I got my first professional job at 24, I was on my parents plan. My dad’s plan charged a lump sum for dependents and he had 3 dependents. My other siblings were younger (under 18), so there was no extra cost to keep me, and no benefit to drop me. It just made sense to remain on as I contributed to family deductible (which my sister always met with her health issues). (Also it was the same insurance for me as I worked for a sister company).
Health insurance varies so wildly. Some blue collar workers pay 100$ a month for great insurance, some pay multiples of that. It largely depends on how much your company subsidizes the cost.
I was watching you guys before and on the day you hit 100,000 subscribers. Thrilled to see that you've grown so much! You both provide so much good information in an accessible way.
The number of people I know that I wish would watch this channel and follow the FOO is crazy.. so many ppl have no idea what they are doing or what is possible. I see mistakes made by family/friends but don’t want to be annoying and constantly tell ppl what they should be doing.
Totally. My wife’s cousin makes 170 as a household and just bought 2 new teslas for like 130k, financed of course, and they are 34 and 35. Meanwhile they basically don’t save anything.
It’s best to stay out of it. But I like to drop hints about my own priorities. About how great I feel driving around a crappy van because I don’t owe a penny to anyone. How liberating I feel about it. They can view it as a mirror reflecting back on themselves, or they can disregard it, as something their quirky friend does. Either way, you’re happy being you, and they’re doing their own thing.
Talking about the non financial decisions is crucial. Time, family and I would add your health. Non of your financial butt-clinching matters if you can’t get these other factors in your life lined up.
Yeah, this is why the FIRE movement has pretty much crashed and burned. You can only work yourself that hard for so long before your body, mind and relationships start falling apart. Slow and steady wins the race. Medical bills, alimony and child support will all eat away your progress if you only prioritise money and not wellbeing.
I served 30 years in the Army and planned my IRA retirement asif the Army paid me nothing. You will be glad you did. Trust me. I won't even need the pension, so I'll invest it for the next generation.
@adamgriffith768 Do understand there are real life and death consequences. People do die and/or get permanently injured physically and emotionally. Do it from a heart posture of serving your Nation and you won't be disappointed. If you do it just for the benefits, it will break you. I loved serving even during war. I was purposed and designed for that, but most were not.
Watching Bo's face as Brian talks about "a good pounding...." PRICELESS. Let's protect both of these men at all costs in order to keep us all laughing as we build our legacies together!
The guy who has the government-job will also have retirement healthcare (which is the second biggest expense in retirement). No one really takes that into consideration. That is the next best thing to having a pension :)
Most local government employees still buy into the "retiree" healthcare. I've spoken to several and it is above $1,500 monthly premium. I will admit that I have no idea how much monthly premiums are outside of the retiree benefit. Keep in mind that there are still deductibles beyond those premiums. Government compensation is still typically lower than private employment, benefits are starting to lack as well. Best benefit for government employee is vacation and sick time.
@@shantvincent782 Not true for San Mateo, Santa Clara and the majority of the counties in CA. Also, Kaiser Permanente (which is a big HMO hospital system) offers retirement-health non-contributory and free, in addition to pensions (this applies to counties as well). How do I know, you ask? LOL i'll let you take a big fat wild guess........
@@angieharris8015 Haha, point taken. I'm in Georgia, which seems to be quite a bit different from a retirement benefits standpoint. However, my knowledge is limited to my little bubble.
I'm so glad you brought up that point at 41:41. People don't consider that location matters so much when buying/renting. And I feel like people get enamored with the idea of a giant McMansion. People overestimate how much space they actually need. They're not considering commutes, amenities, whether you get access to things like museums, public transit, street fairs, etc, the maintenance required to upkeep these huge houses. Driving everywhere will suck the life out of you. I lived in a suburb for a year and could not wait to move back to the city. Now that I live in a city, I sold my car and am saving so much more money; I'm enjoying being able to walk to the grocery store or other mom & pop stores.
I'm 40. I have $600 at home. Keep some in case internet (really the electricity) goes down for a couple days (credit cards don't really work when the machines can't communicate outside of the local area). Has never happened here, but better safe than sorry.
I’ve kept a few hundred of cash in my house since 2003 when the entire power grid crashed in the Northeast. We couldn’t put gas in our cars or buy food for days without cash. Lesson learned.
We generally get local cash for our vacations, but the last trip, we found we were actively looking for situations to use the cash we brought. More and more places (and this was international) are no cash. Not to the point that we couldn't use the cash we took, but it feels like it's getting there... That said, there was one guy in London who loved that we used cash, as "they" track everything you do with plastic... (Which I don't disagree with from a data warehouse perspective, but I got the feeling he was more worried about it than that...)
My husband and I draw $80 cash each month for each of us, mostly for tips and occasional taxi fares (we live in Singapore at the moment and sometimes the drivers prefer cash). But that is it. We grew up in South Africa though. So we learnt early that flashing cash/bling around just made you look like a nice target…
I keep some cash for the exact events Brian talked about. There’s also something nostalgic about cash in the house. That paper currency represents nights from my teen years where my parents had an event or something and I was allowed to stay home and order a pizza with the $20 they left for me. The days of ordering pizza and paying with cash have passed along with video game fueled all nighters but the feeling remains.
For the person with the public pension, research if the benefit will be static or does it grow with inflation. If it doesn’t automatically grow, the benefit will get destroyed by inflation over 25-30 years.
You should have cash in an emergency go-bag. Recall if you get hit by a tornado are other event where cell phones and banks or down for days you may need to have physical cash for those events we keep enough for a week worth of expenses just in case in case
@@Captaine_Crunche I was in a hurricane and money still came handy once grocery stores and gas stations came back after 1-2 days. Banks and cell phones were out for over a week. If it was worse than that then we are talking ammo and guns
@@Captaine_CruncheThat's not even a little bit true. You can look at any similar event in history and see that for yourself. But if you don't want to be prepared, that's on you.
I’m 30 and ALWAYS have cash! Always. I worked in banking for a handful of years. The amount of people that would get stranded on the weekends without cards (lost or fraud,etc.)… I always make sure I have enough to get by for a few days. I am also a believer in trying to tip in cash, so I do think it’s essential to have cash while traveling - domestic or internationally.
I used to travel to Europe and the UK from the USA 2-3x per year to visit friends and family, as well as travel; I did not ever need physical cash. Even back in 2015.
Yeah, I’m from the uk and can confirm the last time I withdrew cash was about a decade ago. No one except old people use cash and even they are giving up. Everyone uses contactless for everything, especially since coronavirus as a lot of places stopped accepting cash during the pandemic.
I think it's common to compare to people better off than us which people will always be better off than you but if instead you look down to see how far you come it can make a big difference. For example most people are probably aspirational wanting to save a million dollars but the median is only 71 k fro 55 to 64 which is terrifying but if you save more than that your already doing better than half of everyone in the US. This perspect8ve changed helped a lot in my late 30s where I feel super behind but in fact I am doing better than average
I used to never keep cash on hand or on me but then when the Christmas Day bombing in Nashville happened it took out credit card machines even into Kentucky and I was traveling back and needed gas. I had very little cash to even get gas but no one could take a credit card so now I keep a little cash for those rare times.
(see below); I need to say this: I emerged from a past of drinking and gambling. I WAS the "can't scrape up $1k" people. One day I decided: If you're in a hole, Stop. Digging. Listen to The Money Guys. They're not just talking. You really can do this. I did. I sleep very well at night.
A lot of people get into addictions because they hate their lives and need an escape. Improving your quality of life means you have nothing you want to escape from and you have the best chance of staying on the wagon permanently.
I'm in my 30s and keep some (under $100) cash on hand for gas and girl scout cookies. This summer at the fair, the POS system went down, so it was either pay in cash with what you had on hand or wait in line and pay a big fee to use the ATMs on site. Also, thank you for bringing up the emotional and time factors for having kids and where you live. Cost is of course a big factor, but there's other factors that money can't buy.
We have had a couple of instances here in the Bay Area where someone cut the internet lines. It took out land lines for businesses and the internet of course. That means that no credit cards could be used as well. It was a mess. I am glad that I had a bit of cash.
working class folks, where I come from, use a lot more cash - I use it to pay my yard guy, some minor handyman repairs on my house, cleaning help, flea markets, and some artisans prefer cash over cards to avoid processing fees
Gotta love that optimism. Sure, the markets were great in the 23/24 tax year but there was also a cost of living crisis and high inflation. It was a great year for existing investments but an awful year for putting aside savings.
I once had my purse stolen so I now have a emergency cash at home. In various denominations in case I need a tip for pizza delivery or some random situation. Part of being prepared with a few bottles of water, extra food, candles, etc
We have a lot more than $1000 saved in our emergency fund, make good $$ but we still go through our subscriptions regularly, side hussle from time to time & meal prep every Sunday and bring lunches to work daily! Those things are not for broke people, they’re for smart people 😬
Hard mode challenge: Find a financial topic Bo isn't excited about. "I'm so excited for today's topic - finding pennies in the gutter after a big storm!!!!!!!!!!!!111111111111"
I still keep a little hidden cash in the house... But I have never touched it. I add $100 every 3-4 years, but the closest I have come to using it was during the pandemic when supplies were short so I was going to buy some eggs and vaggies off of a neighbor... But we did some bartering for IT help instead. So if I didn't use it then... I can't think of when I would use it. But most things I want don't take cash. I mean, they take money, but most things I buy for fun are only available online. So unless I can email cash, there is little point to holding cash.
No way would I be keeping that much cash. My local area has a fairly high crime rate and has storms every year that risk all kinds of damage to my property. Unless the entire country's banking system went down, I have plenty of family that would loan me money for a few days until I could get access to a frozen account or replacement card.
1000$ shouldn't be the target after the last few years. What 1000$ covers since you started tracking this in 2015. I could get most car repairs for done for about 1000$ in 2015 but now I'd be willing to bet they would be substantially higher. Same would have to be said about just about any emergency
American credit cards are not always accepted overseas, as I found out when ai tried to get gas in Greece and they declined my CC. Remember that famous story of Madonna being unable to pay at a restaurant because her UK cards didn’t work?
I also learn that 100% stocks (vs 60/40) performs better, even for retirees, who are not still DCA. A, is this true. And B, if true (Yes, i get "risk tolerance V risk capacity"), is there not an exception for someone like myself, who doesn't Have To withdraw from investments? I really don't understand.
Always keep cash in case there is an earthquake and ATMs are down. Yes, you still can’t pump gas but if you need to buy something from the store, they may let you transact in cash.
I dont think they understood the question at 1:05:00 i dont think theyre saying that roth and savings have are the same. They're saying, "look. I've got $10 I could blow right now on starbucks, but I want to set it aside for an emergency instead" -- the opportunity cost is starbucks, the same regardless of if it goes to roth or cash. The question is, if my emergency fund is last resort and I hope to never need it (I'm seperately budgeting for when I need new tires, for all my appliances when they go out, etc)... why not keep it in the roth? If I need it, I can break the glass. If I dont, it grows tax free.
On the kid, the guys are wrong. Daycare is 800/month/kid. And that’s if your getting a deal. 2 kids in daycare in the summer is 1600/month. You cannot contribute to Roth etc… because if your household income is 120k/year your take home is about 8k/month. Mortgage probably 2k. Childcare 2k. Your half your income and all you’ve done is got a roof on your head and paid for daycare. You haven’t bought groceries, diapers, turned the lights on, saved 25%, put gas in the car, and possibly have student loans. It’s massive. buying 2 cars at 50k each and finance at 10% is better as a financial decision than kids. I have 2 kids, I know, don’t lie to people.
Team Brian. Always carry cash because you dont know when you need it. Several times I have been with a group of friends and had to pay for everyone because "shocked face" credit cards were not accepted or the system was down or whatever. If you never use it then you just carry the same $500 for years. As Brian said, it is about being prepared. And the same for vacations, it is even more unknown.
I'm always stunned by these statistics. If you are older than 19, with a job, and don't have $1,000 then you have some serious spending discipline problems, and I just can't relate.
Me too. I wish I had had another kid, so that my daughter would have had a sibling. Unfortunately, my late husband had Ptsd due to war trauma, so our lives were volatile, which is why I decided on no more kids. Now I’m a Disabled widow, and I hate the fact that I will leave her alone, when I pass. 👎🏼
I only have $1,000 in my safe at home for an emergency but really I only keep it at this point because its a sealed brick of 1's and I just think its cool as shit lmao
I’m under 40 but keep a good Amount of cash on me. I don’t use it for anything bc I’m all about the credit card rewards but I love having it on me just in case
why do you guys show registered trademark symbol ®after CFP but not after CFA, even though CFA is a registered trademark,too? I think the data is skewed and the fact the analysis made no mention about things like people finally having to pay rent, student loan payments etc. The analysis says people polled used inflation as an excuse why they are saving less, even though the government has been forgiving debt and giving away free money since the pandemic. What is interesting is that the analysis of the key statistics mentions zero about people's lifestyle choices. The sheer denial of personal responsibility by respondents is disgusting.
Hey Money guy show, this stat of Americans with less than $1000 savings which is from the Bankrate survey is an unreliable stat. The median deposit is about 8k according to the survey of consuner finances (Fed). This would mean at least half have 1k, but probably way more.
Also people won't use money in the bank because of no reason at all too, even for an emergency just to not have money leave the bank. They just want money in the bank to say they have it and use CC for "points" even though the intrests are at like 20-30%. Math not mathing.
i had $5 in my savings when i found you guys last November. The only thing i was doing right was with my 401k and HSA. I now have $3k in my savings and $2k in the S&P. Turns out setting automatic transfers from my checking to savings and automatic investments from each check is the best way that works for me to grow my wealth. As soon as it became something i didn't have to think about my money started growing. Is this the passive income all the TikTok gurus are talking about? lmao
I hope you have somewhere, other than Chase, to turn them in. A couple years ago, I had a couple hundred bucks in change, and they made me roll everything! - -> for the teller to unroll them when she counted them.
@staceyy6064 my bank just dumps it into a machine. A few years ago i took in about 800 in change and they had it through the machine and cash in hand in about 10 minutes.
I always keep cash on me, not much maybe no more than a $100. I also have petty cash at home. Even my kids have piggy banks at home. One puts money in the piggy bank and never looks at it again, the other counts his money, once in a while. Every few years, when it gets too much, I pull out some funds and invest it for them so they know about compounding. Once in a while, one of them will ask how much their money has grown. I have a spreadsheet to show them when they are a bit older and interested in really looking at how much they've made over the years just by investing in the market since they were born.
Well it depends on miles. What miles you bought the car at and what miles you drive per year. Generally few cars last over 300k miles. Most cars make it to 200k miles. I use a 200k mile rule. If you buy a used car at 150k you may only have 50k easy miles left.
We keep 60 in my wife's wallet for gas or a bite to eat if she forgets lunch and 200 in my wallet because I travel every month for business and would rather not charge all those meals on the road.
Brian, I'm not sure what these kids you hire are doing, every financial mutant knows that you always keep the extra traveler's cheques you don't use when traveling. Just put them in your sock and underwear drawer. Please, poll your staff and see how many can actually explain the purpose of a traveler's cheque....😂😂😂
Ahhhh what are you talking about, Apple is THE BEST streaming service right now. Everything I watch from them is a banger. Silo, Severence, Masters of the Air, Schmigadoon, Ted Lasso. They have soooo many great shows. It's netflix and hulu and those others you can cut lol.
I have a sizeable emergency fund but my sister had a major health event and a 2 million dollar hospital bill is out of reach in this case so does that basic formula leave out health care ...it has toce o! Don't laugh about 60% of you audience is over 40 either . I'm 60 and set financially i only watch to reinforce as i get told often why save you can die tomorrow or a million isn't a million anymore.I am trying to help the younger ones who have this frame of mind to show them you can do it with starting early and be disciplined in doing so and tried telling them to watch your show . I get met with comments like those two guys are geeks especially the older one ....not kidding ! and this isn't a slam. My retort was geeks maybe but loaded too!!
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire without any investment. Retirement becomes truly fulfilling when you possess two essential elements: financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement. .
My wife and I had a 3 month emergency fund and then she got cancer last year. Our savings would not have made a dent in that. Thank God for Health insurance and Credit cards. (BTW she is in remission and we have completely paid off our credit cards)
A few years back we had a similar situation, and yeah. Cash savings wasn't going to put a dent in those bills. A lot went on credit cards for 2 years. And thankfully we managed to pay them off within a year.
Sure, credit card rates are awful... But I called around and got several thousand at a lower fixed rate for a period of time, and that ended up being much more reasonable 6% instead of 20%+
Was it ideal? Oh, heck no. But a very viable option during a very extreme time when I didn't have much in the way of assets yet. I was more interested in how long my savings could sustain the minimum payments than paying for all of the bills out of pocket. If/when we have simalar events in the future I hope to be much more prepared.
Hope she reaches her 5 year remission.
We're retired and also hold a 6-month income emergency cash savings.
Sure you can invest it, but that will take longer for access, we have 3 vehicles all over 15 years old. It's great to have cash when you have a breakdown.
Honestly, I really do think this is a mindset problem for many Americans, not a measure of financial strain. I remember one of Caleb Hammer's guests literally got so confused when he brought up the idea of having $1000 just sitting in an account as a basic emergency fund. She literally did not understand the concept of having money sitting around that wasn't already assigned for spending. Like, she could grasp it when she knew a future expense was coming, but the idea of trying to preempt an emergency by having money set aside just didn't make sense in her mind.
You can always get a payday loan if you have a financial emergency
@@Rew123you’re part of the problem
@@cornellcornell1personally i just max out my credit cards and use the payday loans to pay the credit card bills.
Its free money /joking
@@Rew123that's why I want to own a payday company and get 30 percent 😂
This was the very mindset I used to have (not long ago). I have always had excellent credit, so I became dependent on the idea that I could always fall back on credit cards. You’d be shocked how hard it is to break free from this mindset for someone who is stuck in it. It’s less about knowledge, and instead it manifested almost like an addiction.
I hope you guys realize how much you have changed my life even though I started at 25 now 28 I’ve seen returns that are noted in my head. Thanks for keeping me educated on finances.
pretty wild how they've altered the directional mindset of so many people, including me too 😁
love you guys. you keep me on track. I fit the stereotype perfectly, born 1962: I take $400 cash every two weeks to pay for everything; gas, food, incidentals. i dont like being tracked everywhere i go. Zero debt; Retire this July; can go the next 16 years (includes every single expense, every dime) on SS & pension (& cash) before ever (having to) touching my fat & happy TSP.
Congrats pard!
That federal retirement tho! I'm a bit earlier in my journery, but am also looking to get out at 57 instead of 62, Other than the 10% bump, what made you want to do the later retirement?
Very nice! Happy retirement!
Why did you guys stop making that little sound whenever you showed the order of operations? I really really looked forward to that haha
Brian wondering if he could make musical notes with laminating paper is my brain during every meeting I'm forced to go to lol
Vacation cash is a must for tips for housekeeping, valet, etc.
its 56% you're welcome
😂 and thank you
Come for the title, stay for the Guys
yeah but you're not excited, so it's not the same
Doin the Lords work lol
@jsouth489 you could Google it too. So it ain't that deep lol
Quick comment on insurance shopping: at least for car insurance, premiums are skyrocketing this year. After being quoted for our new policy, we did shop around, but everything was even more than what we were quoted. They actually informed us that the only reason ours wasn't even more of an increase is because we have stayed with them for 10+ years.
The other thing to think about with the health care question is if you have siblings. I got my first professional job at 24, I was on my parents plan. My dad’s plan charged a lump sum for dependents and he had 3 dependents. My other siblings were younger (under 18), so there was no extra cost to keep me, and no benefit to drop me. It just made sense to remain on as I contributed to family deductible (which my sister always met with her health issues). (Also it was the same insurance for me as I worked for a sister company).
Health insurance varies so wildly. Some blue collar workers pay 100$ a month for great insurance, some pay multiples of that. It largely depends on how much your company subsidizes the cost.
I keep an "emergency" Benjamin tucked away in a different part of my wallet. comes in handy when you need it.
true, cash still comes in clutch and is very useful at times
🤔…
Where do you live?
Inside your phone case is another good spot
I've always done the same, but it's a Jackson 🤣
I normally keep an emergency £20 in my wallet in case I need to buy something in cash.
I was watching you guys before and on the day you hit 100,000 subscribers. Thrilled to see that you've grown so much! You both provide so much good information in an accessible way.
To support non-chain restaurants, especially while traveling, it can be nice to pay cash vs. credit.
The number of people I know that I wish would watch this channel and follow the FOO is crazy.. so many ppl have no idea what they are doing or what is possible. I see mistakes made by family/friends but don’t want to be annoying and constantly tell ppl what they should be doing.
💯💯💯
basically. We're in the know so we're eager to help those you care about but people don't care sadly.
Totally. My wife’s cousin makes 170 as a household and just bought 2 new teslas for like 130k, financed of course, and they are 34 and 35. Meanwhile they basically don’t save anything.
It’s best to stay out of it. But I like to drop hints about my own priorities. About how great I feel driving around a crappy van because I don’t owe a penny to anyone. How liberating I feel about it.
They can view it as a mirror reflecting back on themselves, or they can disregard it, as something their quirky friend does. Either way, you’re happy being you, and they’re doing their own thing.
Gotta luv Brian's goofiness but a sniper when it comes to anything money issues.😂👍
Talking about the non financial decisions is crucial. Time, family and I would add your health. Non of your financial butt-clinching matters if you can’t get these other factors in your life lined up.
Yeah, this is why the FIRE movement has pretty much crashed and burned. You can only work yourself that hard for so long before your body, mind and relationships start falling apart. Slow and steady wins the race. Medical bills, alimony and child support will all eat away your progress if you only prioritise money and not wellbeing.
The number of tines I saved money by NOT having cash...
I served 30 years in the Army and planned my IRA retirement asif the Army paid me nothing. You will be glad you did. Trust me. I won't even need the pension, so I'll invest it for the next generation.
This is awesome, I never considered military till 27 when I realized if I went at 30 I could guarantee retirement at 50
@adamgriffith768 Do understand there are real life and death consequences. People do die and/or get permanently injured physically and emotionally. Do it from a heart posture of serving your Nation and you won't be disappointed. If you do it just for the benefits, it will break you. I loved serving even during war. I was purposed and designed for that, but most were not.
Watching Bo's face as Brian talks about "a good pounding...." PRICELESS.
Let's protect both of these men at all costs in order to keep us all laughing as we build our legacies together!
If the power goes out you still need some cash to buy stuff. Doesn't happen often, but $50-100 is reasonable
The guy who has the government-job will also have retirement healthcare (which is the second biggest expense in retirement). No one really takes that into consideration. That is the next best thing to having a pension :)
Most local government employees still buy into the "retiree" healthcare. I've spoken to several and it is above $1,500 monthly premium. I will admit that I have no idea how much monthly premiums are outside of the retiree benefit. Keep in mind that there are still deductibles beyond those premiums. Government compensation is still typically lower than private employment, benefits are starting to lack as well. Best benefit for government employee is vacation and sick time.
@@shantvincent782 Not true for San Mateo, Santa Clara and the majority of the counties in CA. Also, Kaiser Permanente (which is a big HMO hospital system) offers retirement-health non-contributory and free, in addition to pensions (this applies to counties as well). How do I know, you ask? LOL i'll let you take a big fat wild guess........
@@angieharris8015 Haha, point taken.
I'm in Georgia, which seems to be quite a bit different from a retirement benefits standpoint. However, my knowledge is limited to my little bubble.
@shantvincent782 No worries, I'm that way too (my bubble)..haha 😁
I'm so glad you brought up that point at 41:41. People don't consider that location matters so much when buying/renting. And I feel like people get enamored with the idea of a giant McMansion. People overestimate how much space they actually need. They're not considering commutes, amenities, whether you get access to things like museums, public transit, street fairs, etc, the maintenance required to upkeep these huge houses.
Driving everywhere will suck the life out of you. I lived in a suburb for a year and could not wait to move back to the city. Now that I live in a city, I sold my car and am saving so much more money; I'm enjoying being able to walk to the grocery store or other mom & pop stores.
I'm 40. I have $600 at home. Keep some in case internet (really the electricity) goes down for a couple days (credit cards don't really work when the machines can't communicate outside of the local area). Has never happened here, but better safe than sorry.
I’ve kept a few hundred of cash in my house since 2003 when the entire power grid crashed in the Northeast. We couldn’t put gas in our cars or buy food for days without cash. Lesson learned.
We generally get local cash for our vacations, but the last trip, we found we were actively looking for situations to use the cash we brought. More and more places (and this was international) are no cash.
Not to the point that we couldn't use the cash we took, but it feels like it's getting there...
That said, there was one guy in London who loved that we used cash, as "they" track everything you do with plastic...
(Which I don't disagree with from a data warehouse perspective, but I got the feeling he was more worried about it than that...)
I went to sweet greens yesterday and they said no cash just card
My husband and I draw $80 cash each month for each of us, mostly for tips and occasional taxi fares (we live in Singapore at the moment and sometimes the drivers prefer cash). But that is it. We grew up in South Africa though. So we learnt early that flashing cash/bling around just made you look like a nice target…
I keep some cash for the exact events Brian talked about. There’s also something nostalgic about cash in the house. That paper currency represents nights from my teen years where my parents had an event or something and I was allowed to stay home and order a pizza with the $20 they left for me. The days of ordering pizza and paying with cash have passed along with video game fueled all nighters but the feeling remains.
For the person with the public pension, research if the benefit will be static or does it grow with inflation. If it doesn’t automatically grow, the benefit will get destroyed by inflation over 25-30 years.
You should have cash in an emergency go-bag. Recall if you get hit by a tornado are other event where cell phones and banks or down for days you may need to have physical cash for those events we keep enough for a week worth of expenses just in case in case
I’m a under 40
if it's that bad your cash would be useless
@@Captaine_Crunche I was in a hurricane and money still came handy once grocery stores and gas stations came back after 1-2 days. Banks and cell phones were out for over a week. If it was worse than that then we are talking ammo and guns
@@Captaine_CruncheThat's not even a little bit true. You can look at any similar event in history and see that for yourself. But if you don't want to be prepared, that's on you.
Thanks to Alexis for opening up and responding! Very helpful!
now thats a reasonnable goal we can get behind, inlike those 25%+ saving targets !
I’m 30 and ALWAYS have cash! Always. I worked in banking for a handful of years. The amount of people that would get stranded on the weekends without cards (lost or fraud,etc.)… I always make sure I have enough to get by for a few days.
I am also a believer in trying to tip in cash, so I do think it’s essential to have cash while traveling - domestic or internationally.
I'm 35, but I definitely still keep cash.
There's just something about tipping in cash that gets better service. Venmo is too impersonal. But I'm an old soul.
@@ellencox8415I worked for tips for a long time in the past and it wouldn't have mattered to me
I used to travel to Europe and the UK from the USA 2-3x per year to visit friends and family, as well as travel; I did not ever need physical cash. Even back in 2015.
Yeah, I’m from the uk and can confirm the last time I withdrew cash was about a decade ago. No one except old people use cash and even they are giving up. Everyone uses contactless for everything, especially since coronavirus as a lot of places stopped accepting cash during the pandemic.
How can I ask a question for the show?
I think it's common to compare to people better off than us which people will always be better off than you but if instead you look down to see how far you come it can make a big difference. For example most people are probably aspirational wanting to save a million dollars but the median is only 71 k fro 55 to 64 which is terrifying but if you save more than that your already doing better than half of everyone in the US. This perspect8ve changed helped a lot in my late 30s where I feel super behind but in fact I am doing better than average
I used to never keep cash on hand or on me but then when the Christmas Day bombing in Nashville happened it took out credit card machines even into Kentucky and I was traveling back and needed gas. I had very little cash to even get gas but no one could take a credit card so now I keep a little cash for those rare times.
(see below); I need to say this: I emerged from a past of drinking and gambling. I WAS the "can't scrape up $1k" people. One day I decided: If you're in a hole, Stop. Digging. Listen to The Money Guys. They're not just talking. You really can do this. I did. I sleep very well at night.
It’s wild just how true that is. No debt with some cash in the bank, it literally transforms your stress levels.
A lot of people get into addictions because they hate their lives and need an escape. Improving your quality of life means you have nothing you want to escape from and you have the best chance of staying on the wagon permanently.
I'm in my 30s and keep some (under $100) cash on hand for gas and girl scout cookies. This summer at the fair, the POS system went down, so it was either pay in cash with what you had on hand or wait in line and pay a big fee to use the ATMs on site. Also, thank you for bringing up the emotional and time factors for having kids and where you live. Cost is of course a big factor, but there's other factors that money can't buy.
We have had a couple of instances here in the Bay Area where someone cut the internet lines. It took out land lines for businesses and the internet of course. That means that no credit cards could be used as well. It was a mess. I am glad that I had a bit of cash.
working class folks, where I come from, use a lot more cash - I use it to pay my yard guy, some minor handyman repairs on my house, cleaning help, flea markets, and some artisans prefer cash over cards to avoid processing fees
Mid 80s baby who loves to have cash on hand and at home at all times
Same here!!
Gotta love that optimism. Sure, the markets were great in the 23/24 tax year but there was also a cost of living crisis and high inflation. It was a great year for existing investments but an awful year for putting aside savings.
I once had my purse stolen so I now have a emergency cash at home. In various denominations in case I need a tip for pizza delivery or some random situation. Part of being prepared with a few bottles of water, extra food, candles, etc
International is the only time I might bring a $100-$200 bucks cash. A $20 US has gotten me out of a pickle a time or two
Love you guys.
I keep enough cash on hand to pay rent. How do you pay for stuff if the power is out?
Charge the phone in your car
We have a lot more than $1000 saved in our emergency fund, make good $$ but we still go through our subscriptions regularly, side hussle from time to time & meal prep every Sunday and bring lunches to work daily! Those things are not for broke people, they’re for smart people 😬
Hard mode challenge: Find a financial topic Bo isn't excited about.
"I'm so excited for today's topic - finding pennies in the gutter after a big storm!!!!!!!!!!!!111111111111"
We set aside $1,000 for an emergency fund, and needed it 2 months later. Now to refill that!
I still keep a little hidden cash in the house... But I have never touched it. I add $100 every 3-4 years, but the closest I have come to using it was during the pandemic when supplies were short so I was going to buy some eggs and vaggies off of a neighbor... But we did some bartering for IT help instead. So if I didn't use it then... I can't think of when I would use it.
But most things I want don't take cash. I mean, they take money, but most things I buy for fun are only available online. So unless I can email cash, there is little point to holding cash.
I'm 32, and I keep a few thousand dollars in cash at home, and I usually carry about $200 on me.
No way would I be keeping that much cash. My local area has a fairly high crime rate and has storms every year that risk all kinds of damage to my property. Unless the entire country's banking system went down, I have plenty of family that would loan me money for a few days until I could get access to a frozen account or replacement card.
Is it better to have a car loan and a 6month emergency fund or no emergency fund and no car loan?
1000$ shouldn't be the target after the last few years. What 1000$ covers since you started tracking this in 2015. I could get most car repairs for done for about 1000$ in 2015 but now I'd be willing to bet they would be substantially higher. Same would have to be said about just about any emergency
It should cover anything up to major engine work or a full on brakes/rotors on all four wheels. I just had a water pump done for 650.
@@caleb2159I'd bet a 1000$ starter emergency fund realistically should be 1500$ instead now.
American credit cards are not always accepted overseas, as I found out when ai tried to get gas in Greece and they declined my CC. Remember that famous story of Madonna being unable to pay at a restaurant because her UK cards didn’t work?
You simply need a “travel credit card”. They are accepted everywhere cards are accepted. I’ve had no issues in Greece
I also learn that 100% stocks (vs 60/40) performs better, even for retirees, who are not still DCA. A, is this true. And B, if true (Yes, i get "risk tolerance V risk capacity"), is there not an exception for someone like myself, who doesn't Have To withdraw from investments? I really don't understand.
There is where I live in Canada. We have hnw older people who don't need their investment income and they are in balanced or balanced growth funds
I have never been to a poker game that takes venmo or credit cards 😂. 💲💲
Always keep cash in case there is an earthquake and ATMs are down. Yes, you still can’t pump gas but if you need to buy something from the store, they may let you transact in cash.
No pounding employees. HR 101.
I dont think they understood the question at 1:05:00 i dont think theyre saying that roth and savings have are the same. They're saying, "look. I've got $10 I could blow right now on starbucks, but I want to set it aside for an emergency instead" -- the opportunity cost is starbucks, the same regardless of if it goes to roth or cash. The question is, if my emergency fund is last resort and I hope to never need it (I'm seperately budgeting for when I need new tires, for all my appliances when they go out, etc)... why not keep it in the roth? If I need it, I can break the glass. If I dont, it grows tax free.
On the kid, the guys are wrong. Daycare is 800/month/kid. And that’s if your getting a deal. 2 kids in daycare in the summer is 1600/month. You cannot contribute to Roth etc… because if your household income is 120k/year your take home is about 8k/month. Mortgage probably 2k. Childcare 2k. Your half your income and all you’ve done is got a roof on your head and paid for daycare. You haven’t bought groceries, diapers, turned the lights on, saved 25%, put gas in the car, and possibly have student loans. It’s massive. buying 2 cars at 50k each and finance at 10% is better as a financial decision than kids. I have 2 kids, I know, don’t lie to people.
Yet people on half or less have kids and survive just fine.....
@@LawrenceTimme if you make half it’s easier. A family of 4 making 60 gets subsidized childcare.
That’s 1600/month saved right there
13:11 yeah I don’t travel with cash on hand…lol
I'm 31 and I don't have a venmo and I keep cash at home.
I am 50 and I keep one month expenses cash in the house and same in checking account this way I sleep better
Lets blaze one up for the MoneyGuy Team! 420k subscribers!!!!
Team Brian. Always carry cash because you dont know when you need it. Several times I have been with a group of friends and had to pay for everyone because "shocked face" credit cards were not accepted or the system was down or whatever. If you never use it then you just carry the same $500 for years. As Brian said, it is about being prepared. And the same for vacations, it is even more unknown.
I'm always stunned by these statistics. If you are older than 19, with a job, and don't have $1,000 then you have some serious spending discipline problems, and I just can't relate.
8 minutes in and Bo is starting to wonder if his co-host has gone senile hahahahaha
I keep 300 dollars in my wallet at all times, and about 10k in cash at home I am 50.
Me too. I wish I had had another kid, so that my daughter would have had a sibling. Unfortunately, my late husband had Ptsd due to war trauma, so our lives were volatile, which is why I decided on no more kids. Now I’m a Disabled widow, and I hate the fact that I will leave her alone, when I pass. 👎🏼
lol I’m 45 and never keep cash but if I’m going on vacation I need a few hundred in cash just in case 🤷🏻♀️😂
Our discretionary spending is with cash. Olllllllllllldddd school.
I only have $1,000 in my safe at home for an emergency but really I only keep it at this point because its a sealed brick of 1's and I just think its cool as shit lmao
So, I think if you adjusted that question for inflation, change 1000 for an emergency, to 1500 for an emergency, you would be back in the 65% rate.
On the petty cash topic, I took out a few hundred bucks for my honeymoon in July. I JUST spent the last amount on girl scout cookies last weekend.
I’m under 40 but keep a good
Amount of cash on me. I don’t use it for anything bc I’m all about the credit card rewards but I love having it on me just in case
And definitely for travel
why do you guys show registered trademark symbol ®after CFP but not after CFA, even though CFA is a registered trademark,too?
I think the data is skewed and the fact the analysis made no mention about things like people finally having to pay rent, student loan payments etc. The analysis says people polled used inflation as an excuse why they are saving less, even though the government has been forgiving debt and giving away free money since the pandemic. What is interesting is that the analysis of the key statistics mentions zero about people's lifestyle choices. The sheer denial of personal responsibility by respondents is disgusting.
Hey Money guy show, this stat of Americans with less than $1000 savings which is from the Bankrate survey is an unreliable stat. The median deposit is about 8k according to the survey of consuner finances (Fed). This would mean at least half have 1k, but probably way more.
But is it savings or do they spend it?
Also people won't use money in the bank because of no reason at all too, even for an emergency just to not have money leave the bank. They just want money in the bank to say they have it and use CC for "points" even though the intrests are at like 20-30%.
Math not mathing.
@@AncientShadow I don't know anyone who uses cc for points who carries a balance with money in the bank.
I'm not surprised look how they live, they spend money like a drunkin sailor !
The sad part is, I'm sure a lot of people said yes when they really don't have $1,000
i had $5 in my savings when i found you guys last November. The only thing i was doing right was with my 401k and HSA. I now have $3k in my savings and $2k in the S&P. Turns out setting automatic transfers from my checking to savings and automatic investments from each check is the best way that works for me to grow my wealth. As soon as it became something i didn't have to think about my money started growing. Is this the passive income all the TikTok gurus are talking about? lmao
I don’t tip with cash, just add it to the bill
...then the server has to pay taxes on it and possibly share it with their coworkers...
I'm 46, but I don't go on vacation without $300 in cash and $200 just around.
Not having 1k is insane to me. I think I have more than that in my change jars.
you should probably start using change if that's the case, that's "free" gas money
@@carpelunam it is one part of a sinking fund for a hunting trip in 2025.
I hope you have somewhere, other than Chase, to turn them in.
A couple years ago, I had a couple hundred bucks in change, and they made me roll everything! - -> for the teller to unroll them when she counted them.
@staceyy6064 my bank just dumps it into a machine. A few years ago i took in about 800 in change and they had it through the machine and cash in hand in about 10 minutes.
I always keep cash on me, not much maybe no more than a $100. I also have petty cash at home. Even my kids have piggy banks at home. One puts money in the piggy bank and never looks at it again, the other counts his money, once in a while. Every few years, when it gets too much, I pull out some funds and invest it for them so they know about compounding. Once in a while, one of them will ask how much their money has grown. I have a spreadsheet to show them when they are a bit older and interested in really looking at how much they've made over the years just by investing in the market since they were born.
But they have enough money to spend in fine dining every restaurant is full even on weekdays
Age 35, we keep cash at home. Always have
Im like Brian, when i watch a movie i Wikipedia all the actors in the movies
If I'm buying a used car that's 10 years old should I still be keeping it for 10 years? What are the expectations here?
Well it depends on miles. What miles you bought the car at and what miles you drive per year. Generally few cars last over 300k miles. Most cars make it to 200k miles. I use a 200k mile rule. If you buy a used car at 150k you may only have 50k easy miles left.
I wouldn't consider buying a car with more than 125k miles
I’m cutting back to single ply toilet paper this year
oh yeah? well I started using my hands
I dug up my grandads used sears catalogs
We keep 60 in my wife's wallet for gas or a bite to eat if she forgets lunch and 200 in my wallet because I travel every month for business and would rather not charge all those meals on the road.
I don't think the people watching your show are the ones that can't come up with $1k :P
Brian, I'm not sure what these kids you hire are doing, every financial mutant knows that you always keep the extra traveler's cheques you don't use when traveling. Just put them in your sock and underwear drawer.
Please, poll your staff and see how many can actually explain the purpose of a traveler's cheque....😂😂😂
Ahhhh what are you talking about, Apple is THE BEST streaming service right now. Everything I watch from them is a banger. Silo, Severence, Masters of the Air, Schmigadoon, Ted Lasso. They have soooo many great shows. It's netflix and hulu and those others you can cut lol.
Wow, how I wish people were required to do 20/3/8. All of a sudden we’d be on the “nude beach” of financial status.
That’s hard to believe 50% of Americans don’t have $1000 in savings.
If I stop eating, it's a multimillion dollar decision
I have a sizeable emergency fund but my sister had a major health event and a 2 million dollar hospital bill is out of reach in this case so does that basic formula leave out health care ...it has toce o! Don't laugh about 60% of you audience is over 40 either . I'm 60 and set financially i only watch to reinforce as i get told often why save you can die tomorrow or a million isn't a million anymore.I am trying to help the younger ones who have this frame of mind to show them you can do it with starting early and be disciplined in doing so and tried telling them to watch your show . I get met with comments like those two guys are geeks especially the older one ....not kidding ! and this isn't a slam. My retort was geeks maybe but loaded too!!
Is the money guy high?
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire without any investment. Retirement becomes truly fulfilling when you possess two essential elements: financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement. .