How Much Should REALLY Be In Our Emergency Fund? 

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Wife and I paid off our home yesterday and I can’t put into words the feeling right now!

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

"The more money you have, the less true emergencies you have." Love that Dave quote, it really shows that money can act as a tool, and having the right tools can prevent you from getting into bad situations.

I've left jobs and when I bumped into old co-workers on the street they bear hugged me and exclaimed! I'm so happy you escaped that awful place!!!!

This is actually an interesting topic. I am now restarting from zero and my salary has halved but I am going to make efforts even if it's 20$ a month in. Better than nothing 💪

Our emergency fund is enough to live on for one year within our usual budget. I also started an upkeep fund & a future car fund.

Emergencies always occur in threes…or more. It’s never the hot water heater broke, the timing belt went, or the refrigerator quit…it’s typically all three within two weeks.

This is a good question, great question really

The savings account being a put and take account is MY LIFE RIGHT NOW

Second part was the best, need to get into the mindset that every dollar you have needs to have it's own purpose.

I'm paranoid so I feel there's never enough

I really feel like 2021 is demanding bigger emergency funds. 🤕

Between $20K-$100K will be enough for emergency funds as long as not spending those on any kind of entertainment or vacationing in other countries.

Good question by the caller, and good explanation. “Retirement” is just an option. Put your money to work, even the savings.

I love what he said about always giving 1,000 percent.

Dave, you just taught me a distinction I did not have yet. I have listened to you off and on for years, and never quite made that distinction in my head, about the difference between special spending and emergencies. I am going to make a change right now on how I categorize and spend my money. That helps a LOT. I am not naturally good with money and I have to mentally work on it all the time.

Dave is so right! Having a mission for your finances essential. I don't think I'll ever have it correct but I like to choose one main task to save for and Chase that until it's done!

I don't know how I just found this show but I love it already!

I love this stuff. Be aware. Have a plan. Have a purpose. It's not about wealth but about being able to decide. Thanks Dave!!!

Maybe in addition to the emergency fund you need a seed fund. Seeds will grow into a new car, bass boat, Christmas, Birthday, Holiday some new toy.

Love savings accounts - definitely do line item breakdowns for various savings pots 👍

I love this man! God bless him and his family

I had attorney advise me to go bankrupt. he said I know what best for you. I fired him.i don't believe in bankruptcy. Everyone was repaid. Thank you 😎

Great Question!!!! and Greater answer!!! Thanks!

Had my brother come visit us a few months ago. I let him drive my 2014 F150 for the week. He couldn’t get over how “smooth and quiet” it runs and how it’s in great shape. I told him simply, no deferred maintenance.

That’s a good question and I learned a lot from this podcast

Love you Dave!

So my EF is going to actually be an Emergency/Transitional fund..Putting away three years of benefits before I take my pensions fully to improve/upgrade my lifestyle.. The second and third years "of benefits" are going into mutual and index funds

I'm making myself get up for work every day. That's a new concept.

@ Dave n Ramsey Show Team..Great analysis and great tips!🎉

I love ur advices always

Great call!

I always thought a strong one year emergency fund is always good to have if everything else is in order financially.

Ive been going about it as I don’t want my lifestyle to change much with my emergency fund (im planning for if I got laid off). So im saving for my rent/mortgage payments, food, spending cash, monthly memberships. I dont want my life to change much when an emergency happens

This was the exact question I had too!!! Awesome!!

"You are not someone who mails it in"... The caller literally said that her performance is an issue there because she doesn't like the job. So, yeah, she's someone who does mail it in. People will tell you and show you who they are... believe them when they do.

Good information

I LOVE THE RAMSEY SHOW!!! :D

I think of it as a 3 accounts. Checking, slush, emergency. The slush should be way bigger than the emergency. It can be moved into the checking. The idea is the emergency fund is TRULY an emergency. And to Dave’s point as you make more and more money it’s hard to envision true emergencies you couldn’t cash flow or “borrow” from your slush fund

The more you save for the monthly expenses, the better off you'll be when youre in the emergency phase. 🙌🤘

I needed to hear this

It’s easy to say what John says.. but really, it’s not like that if you’re in the position

1:90 is great point. I haven't ever used an emergency fund. A $2k cost is just absorbed in the monthly budget

Watching from Kingston Jamaica Thank you

My savings account is don’t touch account.

I was behind Dave Ramsey 100%, right up to the point where he said a bass boat is not an emergency. How dare he!!!! Lol

Oh I love the integrity in this Show !!

If you hear Dave say "bass boat", it's a good clip. 😂😂

I have a two year working capital fund, sounds excessive but my job is always in jeopardy. I have been let go because of corporate downsizing or merger at least five times. Since I am an older worker it seems I am the first to go. I have a high in demand skill set and have been able to make due with contract work during layoffs. Knowing you have two years, plus contract work allows you to look for the "right next job" and not take the first thing that comes along. Also, now that I am on medicare, we don't have to worry about health care insurance. One day I will just do contract work, but I do like having a six-figure job with a stable paycheck. Most firms will let me work out of the home so they often don't notice how old I am.

I love the part about the worth ethic! I always give my 100% no matter what.

Well Yeah! If u have money then it's not an emergency anymore! Especially now where everything u buy or consume is Unreasonable! Everything INFLATES except paychecks.

I'll never understand how you can earn 160k and be in financial trouble

These people calling in with $160000 incomes !!! 😳

I love how she mentioned her nails👍🏼❤️🤗 priorities!!

She hates her job join the club lady.

Dr. D is the bomb

Hahahaha! I need an emergency bass boat! I literally laughed out loud!

If the forced arbitrary shutdown of small business at the whim of some Governors has taught us anything, maybe one to two years of emergency fund may be needed.

Emergency Bass Boat purchase: When you live in a flood zone and you hear heavy storms are headed your way. Just pointing out.....

An overarching theme is "Being Mindful With Your Savings"

So glad I got a 10k emergency fund, the ac went down and its gonna take 2k to fix. Praise the lord 😅

Thank you brother!

3:25 , lol 😂

We just gonna act like they are not describing the “Ally Buckets” 😂

Houston Texas stand up

As much as possible

Good video. Didn’t answer the question however

I love that my savings account has buckets so I can dedicate a bucket to emergencies and then dedicate other buckets to other things.

as much as possible in emergency fund.

I think if it's about to flood, a boat purchase could be an emergency purchase

One income and pay the bills gasoline and groceries account…. One savings for new car account.. one savings for vacation account…. One savings for safety account. One savings for future child account . And one easy/medium index account for your maybe early pension in future. Do it like this and you will be fine.

Does it factor in obtaining unemployment benefits?

Sounds like Dave is saving to build a hospital one day. Fair play 🤝

Good question, but there's no answer to it because it's subjective.

Put and take account is a savings account I like that

my exes are trainwrecks, all my friends moved away. I got a big nest egg tho!

I have a rental property which I never put on rent. I am not going to pay it off. It has 2.7 million INR mortgage at 8.75%. And is worth 6 million INR. Plus, it won't pay me more than 15000 INR in rent per month. But I will still close my loan. I am 29 and totally don't need that property. I am selling it. And will be debt free once and for all. Luckily I don't have other debts.

How much should you keep in your checking account? Aside from having an emergency fund?

Bass boat might be an emergency if a flood comes lol

I wish Dave would talk about this more because so many of his followers think they just need to save $1000 and then they're good to apply their money elsewhere. Every ANTICPATED but not monthly expense needs to be included in the budget. I forecast what future expenses will come up and when. I'll need new tires every 4 years. I expect inflation to increase my gas and grocery bills by some % every year. I'll probably spend $1000 per year for maintenance and repairs on my 20 yr old car. Kids tuition and property tax are paid once a year...etc. Then I prorate that amount into how much to save per month to be ready for those expenses. I have two savings accounts - one for emergencies and one for periodic expenses. That way I don't go screeching into December with a large tax bill looming that will wipe out the cash in checking account normally designated for routine living expenses. (or dip into emergency fund)

I recommend every household saves up 50k emergency fund before anything else!

I sold my laptop and phone for a total of 850! I'm getting somewhere!

Step 7 in 4 months. Think I’ll wait a little while before becoming too giving. Still need to be better at budgeting.

I have an 85 month emergency fund

Don't think I don't see that M1 MacBook Air over there 😜 yep I have one... And yep!! Am debt free and bought it CASHIOLA BABY!!

Sounds good more accounts 😐 with reasons 👍 for it

AMAP

A bass boat purchase is only an emergency once you find out your mother-in-law is coming to visit.

Dave... What if there is a zombie apocalypse?! The bass boat will be essential! 😂

This show has really empowered me. All the way from Nigeria Thanks Dave

Put & take out & take no get a transition fund sinking fund love that

I'm single no kids active duty and have very little monthly expenses. On top of my head all I have for fixed bills are: $40 cell phone $30 car insurance $13 YT Premium $5 Peacock How much should my EF be in that scenario?

Ok: So you need to work for : 1. Emergency fun 2. 401k to retire 3. Your kids to go to college ( 1 kid maybe) 4.Vacation 5.buying a house I think I'll just die instead

I spend wayyy too many years with savings accounts doing nothing, such a shame, but this was what our parents told us to do: don't invest, it's risky. I wished I had built my portfolio 20 years ago

Great point made here by Dave. I have six months money saved up, and sometimes I’m tempted to put it into my S&P index fund. But then I hear Dave smacking my chops…..”the S&P index isn’t an emergency….are you dumber than a rock?’ Ok…soz Dave.

the emergency fund for people on disability is going to be universal basic income coming up soon

Yes, bare bones

My father in law has always said that he is "saving for the future." He is in his eighties now and very reluctant to spend any of the substantial money that he has acquired because it is "for the future."

Ok, so how much?