I see so many of my midwest co workers complaining about being broke, no savings, etc. Yet I see them buying lunch, drinking multiple energy drinks, pack of cigarettes. So 15 bucks for lunch, 4 dollars per Monster, 14 dollars for a pack. 37 dollars a day. 93 dollars a week. $ 4,386 a year!
Actually for $37 dollars a day, 5 days a week, 52 weeks a year, the number is closer to $10k. - which is probably more than 50% or rent or mortgage costs in some midwestern towns
I’m on my way to building my emergency fund. My goal is 15k. I had 3100 in there and just this week I needed emergency vet care for my dog and a new water heater for my house. In total it cost met 2600. I’m so grateful I had that set aside or else I would’ve been screwed. And I felt proud I didn’t have to ask a family member to loan it to me. I’ve got to start over again but that’s what it was meant for.
Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I 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.!!
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.
The professionals presently control the market since they not only have the essential business strategy but also have access to inside information that the general public is not aware of.
The issue is most people have the “I will do it myself mentality” but not skilled enough. Ideally, advisors are perfect reps for investing jobs and at first-hand experience, my portfolio has yielded over 350%, since covid-outbreak to date, summing up nearly $1m.
"Rebecca Nassar Dunne" is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
@@bhaalgorn I'm not smart enough to play individual stock companies or even understand how to read the market in regards to buying and selling. I had heard that if so then it's best to do mutual funds or etfs
When we married, we opened a tax efficient fund that we automatically deposited 50 bucks in every month that has been going on for 25 years. That is our emergency fund. We keep $2500 on hand for an immediate emergency because we can tap the fund in three business days And frankly there are very few emergencies that require more than $2500 or can’t wait for three business days. We finally tapped the account this year for a small emergency of around 7K. It was super convenient to just pay that medical bill with no effect on our budget. We aren’t going to change the structure. We will keep leaving it at the $50 a month to replenish itself. You can’t believe how well you sleep when you know you could lose your job and still be OK.
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Kimberly A. Doran for helping me achieve this
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.
The thing that kills people is wasting money on Starbucks and eating out. For my individual situation, I have a regular day job along with a few side hustles and dividend investment portfolio. My SWAN # is ~ 7.5 months. Already hit the 6 months in an hysa, contributing to a 401k w/ match, Roth IRA (voo + SCHD), health savings account. But rather than increasing towards an “emergency fund” I am going to have a long term sink fund (for any big purchases or life events that are coming). Since a down payment on a house, setting aside cash for replacing a car, etc all needs to be in addition to the emergency fund. Paying cash for everything keeps you out of financial hell.
Agree. What kills people even more is not focusing on the huge things like mortgage, investment fees, car payments etc. You have a great plan in place!
This is by far my FAVORITE methodology on saving. I appreciate your clarification and reiteration of the main concept throughout the video as well as your clear explanation of how to cycle so the dollars are going where they need to go based on the need. Subscribing now and going back to watch other videos as I just found you today!!! THANK YOU!
Years ago, I started with six months expenses. Then increased it to one year. After that, I decided to have one year of my salary saved. Which was $70,000.
I'm one of the people who needed to hear "use it". I've been knocked back to just a bit over six months due to some storm damage not covered by home owners insurance and I'm STRESSING about it. Not what I needed in my first few months of retirement! But I haven't had to touch investments at all yet.
Like this plan. 1k > 1month > 3month > 6month I'm just not fond of how he thinks most people spend "10, 15k a month or more" I have under 4k coming in a month at 85k gross a year.
He likely is trying to appeal to people in places where living simply costs that much, especially when you factor in that most Americans aren't fiscally responsible
@@normabarker8958 for real. My 74k gross with 10% of gross going to retirement nets me 4k on 4 Friday months. At 85k I'd be over 4.5k/mo on 4 Friday months. Salaried would be just about 5k/mo
This is tailored to how much you spend. Which is why is based on your spend. We use examples in the video to hey the point across. It has nothing to do with what everybody is making when we use an example. Hope that helps clarify.
@@mastermoneyco Yes, that does help understand where you're coming from. That said, my point still stands. You listen to one video and they're talking as though everybody is making quarter million dollars a year, and then you listen to Dave Ramsey, and he seems to think let the median income person in America shouldn't be buying a house valued at more than 100,000 unless you can pay cash.
I agree. It makes me leave immediately, since it makes me feel, like this is tailored to ppl with a high income already, so it doesn't make sense for me to follow that. Since I won't be able to follow it.
15,000 month as a family damn I am on the wrong page I live off 1,200 a month budget and I have 4 months of emergency save up! And I just lost my job yesterday
@@mastermoneyco yes it is! 🦾🦾 I had two sons and their mother never helped me when my place burned down! But GOD is good and I was still blessed to do for them!
I have an emergency fund with $2,000. I also have a separate "reserves" fund that currently has 6 fully funded months of expenses and will have 7 months worth before the end of the year. My goal is to eventually have a full years worth of expenses. I also have other sinking funds for car maint, home maint, etc. I did it by keeping the same budget for the last 10 years. Any raises/bonuses go directly to savings. Lifestyle creap is real if you aren't intentional about not spending extra money.
Should a month ahead just be the bare minimum required? Or should it include things like savings and sinking funds? Or should i base it on my current lifestyle?
If you think you have the discipline to only have your baseline (fixed) costs saved, that is ok with me. Most people don’t. They’ll continue with their lifestyle.
Thanks for the information! I'm currently at 2 months due to recently needing to dip in. I keep one month of expenses in my checking account, but i look at it more like budgeting for next month. In a way, all the small emergencies just come out of that and it gets replenished before i start moving money out again. (One of my checking accounts is at 1.3% APY so i don't feel too bad about keeping it there)
That's about what mine is. Also we're a single income stay at home wife/household, I pay child support and have 1 kid in freshman year in college. We also live in GA, for reference. Mortgage, car insurance, utilities, and credit card bills are just about 5k. The house is very modest as well, but property taxes have increased 15% less than 2200 sq.ft.
I’m inspired by this podcast because it gives me an affirmation that I need to prioritize my family’s emergency fund. ❤️ I have a question though, what do I do because I have just started a job and it’s high paying but salary is delayed by two months? How can I manage to save up for the emergency fund?
One thing that most people don't consider for the retiree calculation is that they are talking about a downturn in the market, another great recession. And that is a good point. But it is a great point for the money you have invested... And if a retiree is only pulling from investments, then this is true. But if you have a pension, and/or social security, you really only need to make sure you aren't pulling from your investments. So let's say your investments cover 50% of your retirement income. Then instead of needing 1 year worth of expenses, you would need 50% of one years worth of expenses... And that also assumes you wouldn't cut back on some expenses also... I think the huge amount needed for retirees tends to be stated as much higher than a lot of people need... Now, what is the issue there? Well, the issue is that the number is usually so high that it can appear unattainable. And now these people are super stressed and worried that they don't have enough when they might be OK... Again, if a retiree is getting all their income from investments, then this can be true... But I think it's really important to stress that for a lot of people, it might not be... Of course, if you have the money to spare, then go for it. Everyone would love that... ;-) But jumping from needing 6 months to needing a year can be huge for some people... That could be overwhelming... That might be the difference between when someone chooses to retire. If it took them a year to get to 6 months, it could take them another year to get to that full year. That's eating into their Go-Go years...
I have two savings and thinking of starting a third in addition to my checking. The only method is when I do it. It’s not complicated or a big project.
@@mastermoneyco I use my checking to budget. My checking pays for bills and food. One savings is an emergency fund, second savings account is my car fund I started years ago. I was forced to give up my car in 2010 having no money at all. That car fund plus the emergency savings put together I’m almost to the point of finally getting a car. And I won’t make the mistake again of car leasing. Where I am if you lease you’re forced to get a lot more car insurance than you need. That was my financial downfall. 14 years so far saving. I don’t have a problem with separate accounts. Just glad that my penniless days are far behind me.
@@lisanidog8178if it works, it works, but that's why I like Ally in spite of not having THE highest rate. I have a "bucket" for my emergency fund, a bucket for any cash my kid each of my kids receive, a bucket for when I'm saving for vacation, a bucket for home repairs, and a bucket for car repairs. Granted, within the last couple months I had to deplete all but the emergency fund and my kids savings. But it is incredibly simple to transfer out if multiple things happen at the same time and very easy to keep track of even if I didn't do a weekly budget.
I may have missed this, but are you counting the entire monthly budget including savings, needs, and “wants/discretionary”? Say we spend 50% on needs, 30% savings, 20% wants - how much of this is covered by the emergency fund? Depending on the definition the same amount in the bank could be anywhere between a 3 or a 6 month emergency fund
If you think you have the discipline to only have your baseline (fixed) costs saved, that is ok with me. Most people don’t. They’ll continue with their lifestyle. But, at the bare minimum saving your baseline costs for 6 months should be the goal.
I’m in the same boat 🛥️. I started paying off debt but stopped so I can save up emergency funds. We’re going to make it. If an emergency happens use emergency fund and then start over/keep going. This is my 2nd time starting mine. I watch “getting out debt” videos to keep myself encouraged. We will get there. Take care!
In phase 1 - do you start with a basic emergency fund before you fund one month ahead if you are starting right at the beginning of the journey. Or do you just fund the one month expenses funded as your emergency fund.
Great question- One month would be your basic emergency fund since it’s really not enough to protect you long term. So you would start by funding one month of expenses.
That could help with healthcare costs but doesn’t cover other emergencies that come up so we have the emergency fund funded first. At least until the “3” phase.
HSAs are the best thing going. Max it out yearly and sleep well knowing your healthcare emergencies are covered if needed. I keep like 5k liquid in it, rest after that is always invested.
Think I did this a little backwards. I saved one month of expenses then started paying a little to both my loan at 8% and my credit card that was a balance transfer from another at 0% for 21 months. I also kept putting money in my HYS, now I have about $6k in my emergency fund and will be done paying my Credit card in November, as that’s when the 21 months is up. I’ll still have about $1.5k on that other loan tho. I suppose I should pay that off fully then focus on investing? I contribute 3% to my 401k with a company match each paycheck, have been doing that for 4 years. I guess I’m a bit confused on where to go from here. Thinking about diving into a Roth IRA after consumer debt is paid off by the end of the year.
You need a larger emergency fund or a larger sinking fund for car maintenance, home maintenance, etc. Money for those true expenses. You can invest more but shore up those cash reserves. It doesn’t matter the order, just as long as you get it done.
$5000/mo in expenses?! Where is this hellscape? Family of 5 here and our expenses are only $1700/mo, and that's including an extra $300/mo to the mortgage.
Where do you live? 😅 Rent or mortgages alone are like $2000 at least. Say a 1600 sq ft home for a family of 5 would be $2500/month here were I am. It used to be less than $1000 a month for a 1000 sq ft home in this same area before covid 😭🥺
@@esmeraldaparker2137 1250sq ft, 3BR home in Pennsylvania. $110k @ 3.5% fixed during COVID. It's a beautiful century home, built in 1900. It needs TLC, but we're happy to restore it at a leisurely place, rather than spending $300k on a new construction made of plywood and chicken wire.
5K a month? 😮. I use 1.2k a month and save 20 euro a month from that number to get out the lower life 😅. Most of it goes to rent, incurance and taxes. I had months I lived on oathmeal and water.
Wait, I just realized that I have 6 months of expenses saved, but I split the cost equally with my wife, so if she lost her job it would be 3 months... Oh man.
I make good money, I am officially at 6 months in savings, 60k I am trying to get one full year of 10k a month B4 I start with another savings account, so I want 120k for a year of emergency funds, it's slow, steady process, takes years, but I can see the light at the end, the first 10k was very hard
@@KOOL8MIKE just me the wife and our one child another on the way, but we live in Cali, but I rather have a bigger safety net for just in case, even if I was to cut back everything and only spend 5k a month, but mortgage and property taxes take a lot of money, welcome to Cali lol
no need to talk about retirement ill never do it. of course i would accept social security at 70 and treat it as a bonus while i continue to work full time at least into my 80s
More power to you! My family has some farmers that fit a similar description. The physical labor of farming keeps the body and mind young though, so even working towards 70 doesn’t seem outlandish for them. Not what I’m planning for my future but tomorrow’s never promised.
I have a money market account that holds shares of SWVXX. I can increase it by $500/year by ensuring that, however much I earn each month in interest, I top it off with whatever is needed to increase the deposited amount to $42 each month. If I earn more than $42 interest in a month, that's gravy.
I see so many of my midwest co workers complaining about being broke, no savings, etc. Yet I see them buying lunch, drinking multiple energy drinks, pack of cigarettes. So 15 bucks for lunch, 4 dollars per Monster, 14 dollars for a pack. 37 dollars a day. 93 dollars a week. $ 4,386 a year!
When your income isn’t high enough you have to watch the little things! Well said.
Midwest co workers?
@@udaykhatry yea, the mid west US, where it's fairly cheap to live. Compared to California, Pacific North West, East Coast, etc.
Actually for $37 dollars a day, 5 days a week, 52 weeks a year, the number is closer to $10k. - which is probably more than 50% or rent or mortgage costs in some midwestern towns
it would take me 7 months to save up 2100 which is one months take home pay
I’m on my way to building my emergency fund. My goal is 15k. I had 3100 in there and just this week I needed emergency vet care for my dog and a new water heater for my house. In total it cost met 2600. I’m so grateful I had that set aside or else I would’ve been screwed. And I felt proud I didn’t have to ask a family member to loan it to me. I’ve got to start over again but that’s what it was meant for.
So amazing! Thanks for sharing your story! Let us know when you hit $15k!
Becky’s face in your pic 😂😂
So proud of you! Thank you for sharing!!! I’ll be here for that 15k as well!!!!🤍🤍
@@iamme7664 it’s hectic. 🤭
So you will need a savings fund to protect your savings.
Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I 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.!!
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.
The professionals presently control the market since they not only have the essential business strategy but also have access to inside information that the general public is not aware of.
The issue is most people have the “I will do it myself mentality” but not skilled enough. Ideally, advisors are perfect reps for investing jobs and at first-hand experience, my portfolio has yielded over 350%, since covid-outbreak to date, summing up nearly $1m.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one.
"Rebecca Nassar Dunne" is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip.
So far on a very low income I've managed to save just over $3000.00 and brought a nutual and etf funds. Still climbing
Amazing! 👏👏👏👏
Awesome! 👍🏾
@@mastermoneyco thank you 😀
Dump the mutual funds if you're already aware enough for ETFs. They're borderline scammy.
@@bhaalgorn I'm not smart enough to play individual stock companies or even understand how to read the market in regards to buying and selling. I had heard that if so then it's best to do mutual funds or etfs
When we married, we opened a tax efficient fund that we automatically deposited 50 bucks in every month that has been going on for 25 years. That is our emergency fund. We keep $2500 on hand for an immediate emergency because we can tap the fund in three business days And frankly there are very few emergencies that require more than $2500 or can’t wait for three business days. We finally tapped the account this year for a small emergency of around 7K. It was super convenient to just pay that medical bill with no effect on our budget. We aren’t going to change the structure. We will keep leaving it at the $50 a month to replenish itself. You can’t believe how well you sleep when you know you could lose your job and still be OK.
I love that plan!
Place that emergency fund in a high yield savings account. Great advice! Thank you!
Glad it was helpful!
Well done! Watch the whole video viewers. I agree with his direction. I would only add, "save automatically, or you won't "
Yep 👍
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Kimberly A. Doran for helping me achieve this
Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.
The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills
You trade with Kimberly Doran too? Wow that woman has been a blessing to me and my family .
I'm new at this, please how can I reach her??
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much....
The thing that kills people is wasting money on Starbucks and eating out.
For my individual situation, I have a regular day job along with a few side hustles and dividend investment portfolio. My SWAN # is ~ 7.5 months. Already hit the 6 months in an hysa, contributing to a 401k w/ match, Roth IRA (voo + SCHD), health savings account.
But rather than increasing towards an “emergency fund” I am going to have a long term sink fund (for any big purchases or life events that are coming). Since a down payment on a house, setting aside cash for replacing a car, etc all needs to be in addition to the emergency fund. Paying cash for everything keeps you out of financial hell.
Agree. What kills people even more is not focusing on the huge things like mortgage, investment fees, car payments etc. You have a great plan in place!
This is by far my FAVORITE methodology on saving. I appreciate your clarification and reiteration of the main concept throughout the video as well as your clear explanation of how to cycle so the dollars are going where they need to go based on the need. Subscribing now and going back to watch other videos as I just found you today!!! THANK YOU!
Glad it was helpful!
Years ago, I started with six months expenses.
Then increased it to one year.
After that, I decided to have one year of my salary saved.
Which was $70,000.
👏👏👏
Shouldn’t you invest much of it?
Awesome 👏🏾
That’s my goal
@@M_SC I have over $200,000 invested at Charles Schwab & I have $150,000 in a high yield savings account 5.06% compound daily pays monthly.
I'm one of the people who needed to hear "use it". I've been knocked back to just a bit over six months due to some storm damage not covered by home owners insurance and I'm STRESSING about it. Not what I needed in my first few months of retirement! But I haven't had to touch investments at all yet.
Excited to watch this channel grow. You’re doing great work man. Keep it up!
I appreciate the kind words!
My emergency fund (along with sinking funds) is separate from my income replacement fund. I don’t want to go through and emergency fund and have zero.
I like that too.
Thanks for doing such a deep dive into emergency funds, bedrock of personal finance.
🙌🙌🙌
Like this plan. 1k > 1month > 3month > 6month
I'm just not fond of how he thinks most people spend "10, 15k a month or more"
I have under 4k coming in a month at 85k gross a year.
He likely is trying to appeal to people in places where living simply costs that much, especially when you factor in that most Americans aren't fiscally responsible
@@TheDinosaur82what kind of income tax rate is that! Wow.
@@normabarker8958 for real. My 74k gross with 10% of gross going to retirement nets me 4k on 4 Friday months. At 85k I'd be over 4.5k/mo on 4 Friday months. Salaried would be just about 5k/mo
Having a government job or state job is adequate for having 3 months emergency fund..
I get so annoyed when I listened to People on the internet, and they act as though everybody is making 150k to 200k or more per year.
This is tailored to how much you spend. Which is why is based on your spend. We use examples in the video to hey the point across. It has nothing to do with what everybody is making when we use an example. Hope that helps clarify.
@@mastermoneyco
Yes, that does help understand where you're coming from. That said, my point still stands. You listen to one video and they're talking as though everybody is making quarter million dollars a year, and then you listen to Dave Ramsey, and he seems to think let the median income person in America shouldn't be buying a house valued at more than 100,000 unless you can pay cash.
I agree. It makes me leave immediately, since it makes me feel, like this is tailored to ppl with a high income already, so it doesn't make sense for me to follow that. Since I won't be able to follow it.
Love your motivations coming from your first hand experiences. Worth listening!
Glad you enjoyed it!
I’m currently working on having 6 months saved I loved the video
I love to hear that!
@@mastermoneyco ❤️❤️
15,000 month as a family damn I am on the wrong page I live off 1,200 a month budget and I have 4 months of emergency save up! And I just lost my job yesterday
Praying you will be able to find employment so you can save some on the emergency funds.
@@pamelawalker9056 💐💐
Daycare is expensive my guy.
@@mastermoneyco yes it is! 🦾🦾 I had two sons and their mother never helped me when my place burned down! But GOD is good and I was still blessed to do for them!
It doesn’t matter the amounts. It’s the concept.
5 minutes in and already I have anxiety
You won’t after you have that fat emergency fund built up.
I have an emergency fund with $2,000. I also have a separate "reserves" fund that currently has 6 fully funded months of expenses and will have 7 months worth before the end of the year. My goal is to eventually have a full years worth of expenses. I also have other sinking funds for car maint, home maint, etc. I did it by keeping the same budget for the last 10 years. Any raises/bonuses go directly to savings. Lifestyle creap is real if you aren't intentional about not spending extra money.
Sounds like you are crushing it!
Most people only make 2000 per month. But what you say is possible. It will just take longer
40$… biweekly…1,000 in a year
Thank you, thank you, thank you🙏🏾 Your insight and words of encouragement are very appreciated
I have been following the same methods originally done by Dave Ramsey for years. It works.
We have differences in this approach but Dave is great.
Thank you. I needed to hear this again.
🙌
This was excellent! Thank you
Glad it was helpful!
OMG I love your podcast. I didn't know you had a YT channel.
Thank you so much for the support! I'm glad you enjoy the podcast. We will be doing much more on YT. I'm excited for you to check it out!
1 month for me is $1000
Should a month ahead just be the bare minimum required? Or should it include things like savings and sinking funds? Or should i base it on my current lifestyle?
If you think you have the discipline to only have your baseline (fixed) costs saved, that is ok with me. Most people don’t. They’ll continue with their lifestyle.
Listen to your podcast everyday at work all your tips and advice have been great for me and my financial and investing journey!!!!!!!
I am so glad you are getting value! Thanks so much for listening.
Thanks for the information! I'm currently at 2 months due to recently needing to dip in.
I keep one month of expenses in my checking account, but i look at it more like budgeting for next month. In a way, all the small emergencies just come out of that and it gets replenished before i start moving money out again. (One of my checking accounts is at 1.3% APY so i don't feel too bad about keeping it there)
"It doesnt have to be conplicated."
*me with a money market account, CD ladder, and bonds* 😵💫
😂 I just stick with the HYSA to make it easy.
Really like how this was put together. 1 year it is than E-fund
🙌
Is there a written order of the steps somewhere?
I follow u on Spotify I’m happy I found this page 🌟
I appreciate you!
half my paycheck includes 400 rent 428 car payment 200 car insurance. yes i work fulltime and only bring home 2100.00/mo at a hospital. i’m 58
Get rid of the car payment you will have a ton more money. You are spending more on a depreciating asset than your living situation
That car payment is eating your paycheck
@@Yugiboii tell me about it
5k for a single month expenses?? Wtf are yall spending so much money 😂
Do you have kids?
@@mastermoneyco main reason I refuse to have em
For me just mortgage, food (not eating out) and car insurance is that 5k
That's about what mine is. Also we're a single income stay at home wife/household, I pay child support and have 1 kid in freshman year in college. We also live in GA, for reference. Mortgage, car insurance, utilities, and credit card bills are just about 5k. The house is very modest as well, but property taxes have increased 15% less than 2200 sq.ft.
I’m inspired by this podcast because it gives me an affirmation that I need to prioritize my family’s emergency fund. ❤️ I have a question though, what do I do because I have just started a job and it’s high paying but salary is delayed by two months? How can I manage to save up for the emergency fund?
I would start saving once the salary comes in. 👍
I think a year may well be advisable. After dealing 2009 and Covid.
Also, I need to remember to follow you from my other account.
I keep a year.
I couldn't imagine anyone needing 10k for expenses on a month to month basis...
Very helpful video thank you!
Glad it helped!
One thing that most people don't consider for the retiree calculation is that they are talking about a downturn in the market, another great recession. And that is a good point.
But it is a great point for the money you have invested...
And if a retiree is only pulling from investments, then this is true.
But if you have a pension, and/or social security, you really only need to make sure you aren't pulling from your investments.
So let's say your investments cover 50% of your retirement income. Then instead of needing 1 year worth of expenses, you would need 50% of one years worth of expenses...
And that also assumes you wouldn't cut back on some expenses also...
I think the huge amount needed for retirees tends to be stated as much higher than a lot of people need...
Now, what is the issue there? Well, the issue is that the number is usually so high that it can appear unattainable. And now these people are super stressed and worried that they don't have enough when they might be OK...
Again, if a retiree is getting all their income from investments, then this can be true...
But I think it's really important to stress that for a lot of people, it might not be...
Of course, if you have the money to spare, then go for it. Everyone would love that... ;-)
But jumping from needing 6 months to needing a year can be huge for some people... That could be overwhelming...
That might be the difference between when someone chooses to retire. If it took them a year to get to 6 months, it could take them another year to get to that full year.
That's eating into their Go-Go years...
Great video
Glad you enjoyed it
Above 6% is high interest? You can’t get 6% with stellar credit now?
I have two savings and thinking of starting a third in addition to my checking. The only method is when I do it. It’s not complicated or a big project.
One thing you can consider is getting a savings account that allows you to budget inside so you don’t need different accounts.
@@mastermoneyco I use my checking to budget. My checking pays for bills and food. One savings is an emergency fund, second savings account is my car fund I started years ago. I was forced to give up my car in 2010 having no money at all. That car fund plus the emergency savings put together I’m almost to the point of finally getting a car. And I won’t make the mistake again of car leasing. Where I am if you lease you’re forced to get a lot more car insurance than you need. That was my financial downfall. 14 years so far saving. I don’t have a problem with separate accounts. Just glad that my penniless days are far behind me.
@@lisanidog8178if it works, it works, but that's why I like Ally in spite of not having THE highest rate. I have a "bucket" for my emergency fund, a bucket for any cash my kid each of my kids receive, a bucket for when I'm saving for vacation, a bucket for home repairs, and a bucket for car repairs. Granted, within the last couple months I had to deplete all but the emergency fund and my kids savings. But it is incredibly simple to transfer out if multiple things happen at the same time and very easy to keep track of even if I didn't do a weekly budget.
I may have missed this, but are you counting the entire monthly budget including savings, needs, and “wants/discretionary”? Say we spend 50% on needs, 30% savings, 20% wants - how much of this is covered by the emergency fund? Depending on the definition the same amount in the bank could be anywhere between a 3 or a 6 month emergency fund
If you think you have the discipline to only have your baseline (fixed) costs saved, that is ok with me. Most people don’t. They’ll continue with their lifestyle. But, at the bare minimum saving your baseline costs for 6 months should be the goal.
HOW is regular maintenance on your car or any other predictable expense an emergency?
Depreciate is and put that money aside.
Because it’s an expense the people typically don’t plan for.
Can I do a 1 month refund then focus on retirement for a little while?
I have 3 high debt credit cards and ive been struggle to pay it off but i will tske this advice make minimum payments until i have 1 month saved up
I’m in the same boat 🛥️. I started paying off debt but stopped so I can save up emergency funds.
We’re going to make it. If an emergency happens use emergency fund and then start over/keep going.
This is my 2nd time starting mine. I watch “getting out debt” videos to keep myself encouraged. We will get there. Take care!
Thanks bro!
No problem!
Andrew rocking a new look!
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Great content. Thanks
Glad you enjoyed it!
In phase 1 - do you start with a basic emergency fund before you fund one month ahead if you are starting right at the beginning of the journey. Or do you just fund the one month expenses funded as your emergency fund.
Great question- One month would be your basic emergency fund since it’s really not enough to protect you long term. So you would start by funding one month of expenses.
@@mastermoneyco thank you
very helpful
Glad it helped!
Great video 😊
Thanks! 🙏
Thoughts out there on HSAs for your deductible and other expenses or should all the money be in the emergency fund?
That could help with healthcare costs but doesn’t cover other emergencies that come up so we have the emergency fund funded first. At least until the “3” phase.
HSAs are the best thing going. Max it out yearly and sleep well knowing your healthcare emergencies are covered if needed. I keep like 5k liquid in it, rest after that is always invested.
So you recommend saving to a HYSA before gaining your employers match in a 401K?
Match would be first because it’s free money.
Think I did this a little backwards. I saved one month of expenses then started paying a little to both my loan at 8% and my credit card that was a balance transfer from another at 0% for 21 months. I also kept putting money in my HYS, now I have about $6k in my emergency fund and will be done paying my Credit card in November, as that’s when the 21 months is up. I’ll still have about $1.5k on that other loan tho. I suppose I should pay that off fully then focus on investing? I contribute 3% to my 401k with a company match each paycheck, have been doing that for 4 years. I guess I’m a bit confused on where to go from here. Thinking about diving into a Roth IRA after consumer debt is paid off by the end of the year.
You need a larger emergency fund or a larger sinking fund for car maintenance, home maintenance, etc. Money for those true expenses. You can invest more but shore up those cash reserves. It doesn’t matter the order, just as long as you get it done.
@@nosirrahm thanks, that’s helpful!
$5000/mo in expenses?! Where is this hellscape? Family of 5 here and our expenses are only $1700/mo, and that's including an extra $300/mo to the mortgage.
Expenses are location dependent. Everyone’s will be vastly different.
In the United States?
Where do you live? 😅 Rent or mortgages alone are like $2000 at least. Say a 1600 sq ft home for a family of 5 would be $2500/month here were I am. It used to be less than $1000 a month for a 1000 sq ft home in this same area before covid 😭🥺
@@esmeraldaparker2137 1250sq ft, 3BR home in Pennsylvania. $110k @ 3.5% fixed during COVID. It's a beautiful century home, built in 1900. It needs TLC, but we're happy to restore it at a leisurely place, rather than spending $300k on a new construction made of plywood and chicken wire.
Moving to Pennsylvania
@ adrian, yes we do, especially black men
Im a 55yo female, I have a years cash saved on hand, Im debt free (including home) and have over 600k in investments and I STILL feel Im behind. 🥺🥺
I don't agree with 6 months I agree with 12 months of money saved for emergency
I say 6 months is the minimum not the maximum.
5K a month? 😮. I use 1.2k a month and save 20 euro a month from that number to get out the lower life 😅. Most of it goes to rent, incurance and taxes. I had months I lived on oathmeal and water.
It depends on location, number of people in your family, etc.
How many times will privilege be mentioned? People n d proper financial knowledge regardless of privilege
Which is exactly what I am saying.
Wait, I just realized that I have 6 months of expenses saved, but I split the cost equally with my wife, so if she lost her job it would be 3 months... Oh man.
I know that voice! Shout out to the Personal Finance Podcast!
🙌🙌🙌
I make good money, I am officially at 6 months in savings, 60k I am trying to get one full year of 10k a month B4 I start with another savings account, so I want 120k for a year of emergency funds, it's slow, steady process, takes years, but I can see the light at the end, the first 10k was very hard
You nailed it. It’s a slow process and this is a journey.
Wow 120k for emergency? How big is your family?😂
@@KOOL8MIKE just me the wife and our one child another on the way, but we live in Cali, but I rather have a bigger safety net for just in case, even if I was to cut back everything and only spend 5k a month, but mortgage and property taxes take a lot of money, welcome to Cali lol
How to save more money… make more money, thanks
no need to talk about retirement ill never do it. of course i would accept social security at 70 and treat it as a bonus while i continue to work full time at least into my 80s
More power to you! My family has some farmers that fit a similar description. The physical labor of farming keeps the body and mind young though, so even working towards 70 doesn’t seem outlandish for them. Not what I’m planning for my future but tomorrow’s never promised.
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S L O W D O W N!!
You have finished your RABBITING on without a SINGLE BREATH!!
YIKES😮
Can’t stop the flow state.
Dave Ramsey baby steps😂
It’s absolutely not. We disagree on multiple points here. And I love Dave but they are not the same.
@@mastermoneyco upgraded baby steps.
Jesus christ man, nearly an 8 min intro….please respect our time and JUST GET TO IT!
He has this "one weird trick....." 🤣😂 it's the standard elongated intro youtubers have to do to keep their videos monetized.
Agreed, first time seeing this dude. Probably the last time
Remember guys things starts to spoil when you are unemployed. 👍👍
🌈 🌈 If you are a black person, you will need more emergency funds because of racism.🌈🌈
huh???
I have a money market account that holds shares of SWVXX. I can increase it by $500/year by ensuring that, however much I earn each month in interest, I top it off with whatever is needed to increase the deposited amount to $42 each month. If I earn more than $42 interest in a month, that's gravy.
Love it
My nickname is Swan. So I love the Swan acronym. 🦢
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My nickname is Swan. So I love the Swan acronym. 🦢
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