Is A 12-Month Emergency Fund Realistic? + How To Save Yours! | Clever Girl Finance
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- čas přidán 15. 06. 2024
- Having a 12-month emergency fund can help prevent stress in the long run. The general advice is to have a 3 to 6 month emergency fund. But depending on your job industry and the current job market, having an expanded emergency fund may be right for you.
Have you thought about having a 12 month emergency fund? How much of an emergency fund have you saved or are you working towards? Share in the comments
In this video, we are going to discuss if a 12-month emergency fund is realistic and how to save yours!
#emergencyfund #12monthemergencyfund
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Working on a 3 month emergency fund right now. Then I will up my investments while working on having 6 months. All the while, I will be keeping debt down and raising my income.
Love this approach!
I have a 12-month EMERGENCY FUNDS!
Nice!
Saving one year of living expense is very important. The 3-6 months is not enough.
I have emergency fund of 3 years. I maintain this in liquid debt funds so that I don't have to worry about my equity investments.
Uuaaauuu 3 years is very Conservative. Congratulations for the uge amount.😊
I got 13k saved up
Well done! That's great!
For anyone who would think this is silly, let me tell you IT👏🏾IS👏🏾WORTH👏🏾IT👏🏾
I got sick in January 2021 and didn’t go back to work until August 2022. My savings is how I paid all my bills.
Same thing happened to my 25 yr old niece. Every time she tried to return to work she ended up back in the hospital. Turns out she had a severe case of POTS. She went back to work and with multiple strategies is living her best life. With the savings, she stayed stable and didn’t go into debt causing more stress.
Thank you for sharing this
I have an emergency fund that is worth 2 months as of now. I hope I achieve 12 month worth soon
You can do it!
Great content
So helpfull🙏🏾
Good stuff! Are you originally from Barbados? I'm picking up a slight accent.
Yes 12 months is way better if the boss hates you tomorrow or you hate the boss tomorrow or you get very sick and can't work for a year
The emergency fund can still be earning money! Keep it in a high-yield savings account. You can get 3-4%. Build a CD ladder so you have a CD coming due every month. I'm now looking into short-term T-bills.
I know we'll-educated people who thought they had secure jobs and were laid off at very short notice. It can easily take 6 months to find another job.
Agreed. That happened to my friend, only 2 weeks notice and took him 3 months for another job.
I never thought about creating a CD ladder.
I think this is especially important for us single people. By year end of 23, im on track to have a years worth saved plus with a little bit of wiggle room built in. 3 months to go and i should get there barring anything unexpected. That peace of mind will be amazing.
Love Love Love Love this chanel
Thanks for being here!
I consider my 6 month pantry to be part of my emergency fund. I'm not a prepper! I don't live in terror of a doomsday event.
However, I keep a reserve of food. Because I have the stockpile, I can wait for sales.
It gives me a sense of security to know that it won't come to choosing between food and say, paying the electricity bill.
I totally agree 👍 I currently have 70k saved between my high yield savings account and checking ✔️, the monthly interest on the high yield savings account alone is enough to cover my monthly property taxes on my home which is paid off, but the peace of mind off having that emergency fund is priceless, I feel like I have choices when it comes down to where I want to work, I'm also thinking 🤔 about purchasing a storage facility
Love this! Well done on having that money in the bank!
I really like this video. I had a stroke with no savings. I am completely starting over from scratch. Eventually I do 12 months but now I working on 1000 emergency fund
I lost my job and my car broke down so my savings are gone so I'm just restarting my 1000 emergency fund again.
I'm just about at 9 months emergency fund, almost 20k in a high yield savings account. I had about 14k at the end of June (it's now reaching the end of September), and have been putting almost every penny of my paycheck that isn't going to cost of living into this account. Once I reach 20k, I'm going to take a break. I just started a new job at the end of June at a place where my job shouldn't be volatile unless a major economic crash happens (I'm a core worker in an understaffed department that can only be dissolved if the branch is dissolved due regulations making my department a legal requirement for my business). I make a decent salary, where, before bonuses, 55% of my income goes to cost of living. The last time I spent a large portion of money on myself, other than moving in June, which was more or less a requirement with how far my job was, was in November of last year. I haven't given myself anything in almost a year, and it will be a year by the time I have enough to buy something nice. After that, back to saving.
Love this update! Well done! Thanks so much for sharing and inspiring others!
I was told I needed to have a Rainy Day Fund and an Emergency Fund. Aren't they the same thing?
Thanks for the question! A rainy "day" fund essentially helps your cover short term situation hence the term "day". Emergency funds are for longer period of time e.g. to carry you through for 3 to 6 months. Both however fall under the same umbrella of having back up savings just in case.
Thank you, this was very helpful
You are most welcome.
Thank you so much not many people go into such detail!
Thanks for tuning in!
Just one thing about signing up for cash back schemes and coupon schemes... these things often data mine, spam and scam you so be careful
How do you save an emergency fund when everything broke you had to use cc and now in scary debt paying minimum and still not a big emergency fund?
Save what you can as you can. Ensure you make your debt payments and then focus on earning more - eg can you find a better paying job, or part time job? Are there things you own you don't need or use you can sell? eg items in your closet, kitchen, electronics, baby/kids items etc? Hopefully this helps.
Years ago , I couldn’t even dream of having one let alone 3-6. Fast forward to now. I feel it should be top priority for every worker. Once I got to the 6 month fund, now I know it’s very possible to have a 12 month EF. Only a few months to go!!
this is very helpful thanks very much for sharing
Keep 3 months in savings account, would pull down from investments if needed more.
Thanks for sharing!
I have a 7-month emergency fund and by February, I will have an 8-month emergency fund. I also have a cushion within my emergency fund, meaning I saved for more than just my core expenses so that I have wiggle room should I need it. My goal is to have a 12-month emergency fund as it would make me feel secure. In my opinon in addition to core expenses, your emergecy fund should also cover expenses for mental health and emotional needs. As a social worker studying for my license to become a mental health therapist, I think it is important, especially during difficult times to maintain your mental and emotional health. I know this is easier said than done, but when you are in the saving phase, it's better to save now, rather than to have an emergency and not have the money.
Thank you so much 👍
I really would like to have a 2 year emergency fund. In the 2008 recession I couldn't get back into my field of work for 2 years. I could only work temporary contracts in another field of work. My brother has been going through health treatment and hasn't been able to work so an emergency fund in place really does help reduce the stress...of not all the stress at least you feel better
Great tips
Great info!
I have 8 months but I will use the 5 months of that to invest when a opportunity arises. Like 2011 housing and covid sell off
Thanks for sharing!
Wow,am always blessed dear.
👏👏👏💖
Love this.
I just started my 12 month emergency fund this wk. Im an artist living in NYC and its definitely necessary
Well done! This is awesome!
I live out of state (8 hours from home) and a 12 month emergency fund definitely makes me feel the safest and most secure. $5,000 is for the move back home and another $5,000 is in the case that I ever need to break my lease. The other $5,000 is to cover the costs of getting a new place back home. My true emergency fund doesn't even start until that. My ideal emergency fund is 50k and that is because I come from a very humble background (maternally anyway) and have already experienced what it is like to have to dip into my emergency savings. Last year I'd reached 18k in savings which took under a year and a half to build. I am a teacher, I live alone, and I am single income, so it took a lot of grit and discipline in order for me to reach that goal. I'd also been making triple monthly payments on my car loan and paid it off more than three years early and enjoyed having no debt with the exception of my student loans which I wasn't making payments on at the time due to COVID-related policies. That lasted for just over a year before I was hit by another driver and my vehicle was totaled.
I had to take out a loan to replace my car and put 7k down to avoid an insanely high monthly payment. I was left with 11k when the accident was all said and done and was set back an entire year as far as savings. I still get calendar notifications on paydays notifying me of how much I would have in my savings had I not gotten into the accident. It gives me anxiety at times although when it does happen, I simply pray and cast it down because I know that fear is not from God and that for whatever reason or another, it was God who allowed me to go through that experience. I sometimes wonder if I was beginning to form a mindset/ mentality that was independent (well less dependent because I could never be truly independent) on God and he simply had to humble me. I plan on working both winter and summer school to get ahead with the rebuilding process. I am projected to be at 23k by the end of the school year and that doesn't even include the extra jobs. God is still good and is worthy of praise! 🙏
Thank you so much for sharing this. Keep going. You've powered through and you will achieve your goals!
@@Clevergirlfinance Thank you for commenting and for the wealth of knowledge that you share on your channel. Definitely motivating!
Yes truly God can humble you when it comes to finances..my current experience makes me want to build a 5 year emergency fund..it allows your brain to think bigger if your not worried about lack of the basics
Praying for you ❤ .I think you are doing awesome in your savings ! Breathe! You are amazing!
@@rachaelnuchols764 Thank you so much! ❤
"To obtain financial freedom, one must be either a business owner, an investor, or both, generating passive income, particularly on a monthly basis." - Robert Kiyosaki. I wasnt financial free until my 40's and I'm still in my 40's, bought my second house already,got a new business my wife is managing, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn't matter if you don't have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made
I understand the fact that tomorrow isn't promised to anyone, but investing today is a hard thing to do for me now because I have no idea of how and where to invest in.l would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.?
Alright Vic, Investing typically demands a good understanding, and that's where having a financial consultant is invaluable. I've had the privilege of working with Regina Louise Collaro, an investment advisor affiliated with a licensed wealth management firm. She's widely recognized for her expertise, so you might have come across her name. With her support, I've attained financial security and now receive a steady monthly income through her successful approach. I strongly advise considering an experienced investment advisor to boost your financial prospects.
That's great, your investment advisor must be really good, I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?
Regina Louise Collaro is based in the United States and can work with anybody wherever they stay. If you would like more information on reaching her, you can conduct a search online.
I was pleasantly surprised to find that you're familiar with her as well. I've had the privilege of working closely with Regina Louise Collaro over the past few months, and she has not only helped me earn substantial profits but has also been an exceptional mentor and advisor. Her ability to navigate various market situations is truly remarkable, and I couldn't be more satisfied with our collaboration.
This is helpful! I’m thinking about getting a seasonal job to increase my emergency fund.
I have actually done seasonal work the last two years in order to increase my emergency savings. It has made a huge difference with my savings goals and hasn’t interfered with my day job, which is a job I enjoy. And the seasonal work isn’t stressful, overwhelming, and doesn’t take a lot of thought. For reference, I work for a park district in the summertime on a flex schedule.
That’s wonderful to hear!
Love this ❤ great idea weather temp saving...sounds like fun! Thank you
Yes it is! It is possible to save for 12 month. If you have to use some of it, replenish it before you invest for that month.
Agreed!
Very very helpful. Thank you very much
As far as I know, my job is pretty stable. I had to use some of my emergency fund this spring for a medical leave. I just finished paying it back but still have a ways to go to fund 6 months. To stop myself from spending some, I invested $10,000 of it in a GIC @ 5.1% locked in for a year. I can still get the money out in an emergency but I would lose the interest accrued. I have sinking funds I could tap into in a dire emergency. I am now motivated to save a year emergency fund. One step at a time.
Thanks for sharing this!
How Much Would You Consider 1 Year Emergency Fund Single Woman
I have an 3 month as of now. Worki g towsrds 12 mth fund. I find that I have to do intentional spending
Keep going!!
Very helpful, saving for emergency 12 mth plan is the best for me
Some say 12 month Emergency fund is a waste because 6 months is over enough and the rest you should invest
It depends on each persons comfort level too
@@Clevergirlfinance yes but 12 month is comfort I need to tune other people out and do what's best for me and listen to the pros like you thanks again
I have a 6 month emergency savings now but worth diligently on 12 months. I will just feel better just in case something happens and I don’t want to liquidate my 401k and brokerage accounts in the case of of an emergency. I read in an article that if you are taking out a 401k loan for unexpected expenses, 1. You are broke 2. You need to cut back and save two emergency funds, first account ~ $5k second account a year’s worth of salary. Once you get the two accounts to the desired account, make to continue regularly to account for inflation and/or withdrawals
Currently, have a little over 6 months in my emergency fund working towards 12 months.
Well done!!
My idea is also 12 month. At 6 month so far and really working towards 12 month now. I also purposely have two funds. One is designated specifically for my car and pets. That came in handy when my oldest cat was diagnosed with diabetes at the end of 2021. I use that fund to cover all of his medical expenses and also used it for scheduled maintenance on my car. Rebuilding that right now too since my cat has dental surgery scheduled for Feb 2023.
I have had a savings account that would cover 6 months of expenses. I like to call it my cache instead of emergency fund. I am so thankful for it because when I needed to make urgent repairs on my home it was there and I didn’t have to go into debt. I decreased my living expenses by limiting eating out and shopping. When we had the stay at home orders, I put my weekly gas budget into savings. I saved all of my stimulus checks and tax refunds. I also got stipends from work and I added them as well.
I have an emergency fund.
But I think need to increase it little more....is $ three months of household expenses cover is a enough...?
I think it depends on your comfort level. I had a really had time finding a job the last time I was laid off, so I'm increasing mine.
Well I know a few people that have a 1 yr emergency fund but they make six figures and help from spouse.
Two years. Very important. Six months is not enough.
8 months. Closing in on 12 months hopefully by 4 more months God willing. Have a very stable and strong secure career. Just want the peace of mind.
Well done! Thanks for tuning in!
I currently have a 4 month emergency fund, but always working on making it longer.
Well done!!
I start out great but I end up going into for something that’s not a emergency. I’m not making enough at my job so I would want a 12 month emergency fund. I definitely would need to start off small and then increase it. You have some good ideas to help. I’ll try it. Thank you
Coming through the pandemic I was out of work almost 3 years. I would rebuild my emergency fund to cover 1.6 years liquid then short term investments to cover another 36 months.
Earlier this year, I had close to 3 months in my emergency fund then had to get an unexpected surgery during the summer so the fund ended up depleted and I kind of gave up for the rest of the year.
Something similar happened to me to except my situation involved a car wreck. I definitely did my own thing for a few months too, but thankfully got back on track and have been making what feels like slow progress, but still progress, nonetheless.
Don't give up - the money you saved served its purpose! Start to replenish it!
@@abbyc.4215 You got this!
@@Clevergirlfinance I never looked at it from that perspective before and instead let anger and anxiety get the best of me, but I think you're right. Thank you again!
What do you do when another surgery may be on the horizon but your fund is practically depleted 😢
I feel like you should smile more 😃