Chances are that sometime in your life, you’ll have to tap into your emergency fund. That’s okay! My dad, financial expert Dave Ramsey, is here to help you get your emergency fund fully stocked again.
22, full-time college student, part-time worker. $45,000 in savings. Looking forward to hitting $50K in the next 6 months. Oh, and no college debt. Or any debt, for that matter. Thanks Dave Ramsey and Rachel :-)
If you do ROTH just for a few and stop, you will be a millionaire by age 65. Imagine if you do many many more years, you will be a multimillionaire. The power of not having debt. Keep making good choices and Jesus first, of course.
Dave you used what you went through so you could help yourself and many other people. You are one of the few people that found your true purpose in life. Thank you for motivating me and many other people.
My grandmas rainy day fund was scattered throughout her house in cash. She put money in books, shoes, cereal boxes, cookie jars. She collected cookie jars and only one held cookies 😂
I was told my grandma did that too. She also put money in oatmeal box, flower pots and hid money at her spring house the place where she would go each day to fill up buckets with drinking water.
I'm so thankful for my emergency fund. Do to health issues I have had to rebuild it twice. I'm finally at the point I can invest. I'm thankful I was able to get out of debt early on in life. To be honest I look at my emergency fund as having to be rebuilt but it allows me to sink! Living frugally and below means are key. I have learned that a person can have a joyful life despite how much money they make. I'm so thankful for my side hustle that has allowed me to get out of debt!
Rachel, this was BEYOND HELPFUL and an answered prayer. I met and sang for your staff in early 2000s, been out of debt since 2006 and have had fhis question ever since. I can relate to feeling concerned and sad when using my ER fund as I call it. WOW thank you for WHO YOU ARE! Hope to meet you one day.
Hi from Australia! So glad we found you, Dave Ramsey. We had JUST saved 6 months' Emergency Fund before my husband lost his job. Totally unexpected; big shock, but no stress over finances. Another job is lined up, but I can't begin to tell you how knowing the money was there made the biggest difference to us. Thank you for all you're doing. We're educating our kids on the Baby Steps. They will be so far ahead of us!
im on baby step 2 but i had over a $1k emergency fund, (is the only thing im doing different in the baby steps) but since this whole pandemic chaos... i started my 3-6 month emergency fund now because who thought a pandemic would've last 3 (plus) months??? so i would feel more comfortable with an emergency of 3-6months than just 1k.
I was on pre-baby-step one when COVID-19 came. My situation isn't as bad as some, but I still felt peace of mind because I knew what was going on with my money. I used the stimulus check to finally get myself an emergency fund.
I think a lot of people have neglected the idea of saving or they start saving a little too late and now during this crisis it’s hard for them to provide their basic needs. Nobody knows how long this is going to last and a lot has to change whether financially, socially, economically or even politically
I will not stop contributing into my 401k until I retire. I got out of debt using DR's plan with that exception, I'm financially independent and I use credit cards too. I pay off the balance every month or more often however. I think you should not use credit cards if you can't keep them paid off.
My employer use a payroll system that lets employees control their bank accounts for direct deposit. It allows for splitting up your paycheck between multiple accounts. By automatically diverting $50 from each weekly paycheck into a savings account, I had $1k saved in 20 weeks without thinking about it. This might be the easiest route for some people because a lack of self control doesnt get in the way
I think the emergency fund should be refilled every month regardless of whether we had an emergency or not. By refilled i mean a tiny little portion of it but on a monthly basis so that it grows and re grows slowly maybe but regularly
I would love to hear Dave share more on this. I’ve been thinking of your idea all week…wondering how little I can get away with since our income is tight. We used 900 this month of our we fund on car repairs and dental emergency. . Is there a minimum recommended monthly account in your opinion?
Just about to be fully funded and needed all new hvac system. Furnace and A/C yesterday. I was feeling bad about it, but it’s paid for and no financing needed.
Thank you Rachel and Dave..The best two terms I learned was "e/transitional fund" and "lifestyle creep" We don't have to agree on everything.. and I think 6 months e/fund isn't nearly enough..I like 3 years e/transitional because I can't/unable go back to work and HAVE to save if I want to improve my living conditions Fortunately I learn to live on less than I received and trained myself to continue living that way while I was building the e/transitional fund.. which paid for my share of cataract surgeries, a new fridge, and roof for the home.... "Lifestyle creep" ?? When windfalls do happen like the "checks" and a pension starting, I put most of them into the "e/transitional fund" until I can reach that goal of three years of benefits/income
I feel like if your still building it and getting started on the plan it is discouraging but once you have worked through the whole plan and an emergency happens yes it sucks to see the amount go down but you are probably not going to feel as discouraged by it cause your steady.
@Google User agreed. also the $1000 was never intended to be enough. It was intended to get you to hurry and get out of debt so you CAN build an emergency fund that is enough. I think all these people missed the point on that
The point is you replenish it and keep paying off your debt. Before you know it you payed off your debt and ready to build on you emergency fund…3 to 6 months. I would honestly shoot for 6. To have that peace of mind is always good. It’s a marathon and not a race.
I tell you what. I recently had a co worker who is 65 and her husband was in bad health so they had to get immediate care for the treatment they had to pay the deductible for the procedure and they had to come out of pocket $450. They didn’t even have it so they had to put it on their CC. Was so wild to me. I recently had my car battery go out on me and it cost $230 to replace. I was super thankful I had that emergency fund saved up. But crazy part about it. I didn’t even have to touch it. I had $230 I could spend on it and be fine lol. Just crazy how us in the US don’t even have $1k saved up for emergencies
I would like to have more than 1000 as an emergency fund. Because dipping into that will have you at the bottom. You can rebuild it but it will take longer to build than to spend of course. Right now mine can go about 200 below the $1000. But I put it back up.
I guess restarting is a part of the process..But it can be SO discouraging. At least knowing you used it for a very valid emergency helps. But looking at that empty box is making me want to throw caution to the wind for comfort junk food, not rice and beans.
I feel you! Lol My whole fund was wiped. Let's just go buy some veggies and fruit though. It keeps us positive on top of healthy. And make a visual of your rebuilding. We can do this!
Would you consider it an emergency to get a driving license and a car in order to get a new better paid job because you are paid incredibly badly even though you are highly qualified?
I'm watching this video in 2024 knowing that redundancies are going to occur in my workplace. I'm lucky in that I saved up a fully funded emergency fund. I hope I don't get made redundant because it will obviously take time for me to find another job, but at least I won't have to worry about paying the mortgage for the next 6 months, etc.
To be fair, just getting it started, is a very good start. In my opinion 1000 is a good starting point. Then ultimately find a total that is sufficient for you.
@@SherryEllesson it was never intended to be enough. the idea is GET OUT OF DEBT. then build an emergency fund that is enough. the $1000 is simply a buffer so you don't fall back into using credit cards to bail yourself out of a stick spot.
1000 is just meant to be a starting point. More than the math, it’s the mental push to knowing it’s not quite enough therefore pushing to get past step 2
Building the emergency fund is by far the most difficult for me. No doubt about it. Debt reduction and investing are much more exciting but the emergency fund is terribly terribly boring.
The pandemic is not the emergency per se. The pandemic is the catalyst for the emergency job loss or medical bills etc. I am retired living on a plan/budget and my income didn't change. The stuff people were asked to do was my lifestyle anyway. Cooking my own planned meals not running around like a headless chook managing my life and saving money. My TrumpBux got saved.
