My Emergency Fund Doesn't Cover My Emergency!

Подписаться 3,5 млн

Просмотров 104 тыс.

50% 1

My Emergency Fund Doesn't Cover My Emergency!
Say goodbye to debt forever. Start Ramsey+ for free: bit.ly/35ufR1q
Visit the Dave Ramsey store today for resources to help you take control of your money! goo.gl/gEv6Tj
Did you miss the latest Ramsey Show episode? Don’t worry-we’ve got you covered! Get all the highlights you missed plus some of the best moments from the show. Watch debt-free screams, Dave Rants, guest interviews, and more!
Want to watch FULL episodes of The Ramsey Show? Make sure to go to The Ramsey Show (Full Episodes) at: www.youtube.co...
Check out the show at 4pm EST Monday-Friday or anytime on demand. Dave Ramsey and his co-hosts talking about money, careers, relationships, and how they impact your life. Tune in to The Ramsey Show and experience one of the most popular talk radio shows in the country!
Ramsey Network (Subscribe Now!)
• The Ramsey Show (Highlights):
www.youtube.co...
• The Ramsey Show (Full Episodes): www.youtube.co...
• The Dr. John Delony Show: www.youtube.co...
• The Rachel Cruze Show: www.youtube.co...
• Anthony ONeal: www.youtube.co...
• The Ken Coleman Show: www.youtube.co...
• The Christy Wright Show: www.youtube.co...
• EntreLeadership: www.youtube.co...

Опубликовано:

13 окт 2024

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 324

@michellerichardson3090 3 года назад

Sometimes emergency funds don't cover the whole cost, but having something is better than having to start from scratch

@MrCander000 3 года назад

You are absolutely correct.

@alexgrinage 3 года назад

This wasn't bad to begin with they make 6500 a month and only need 1700-3500 to live. That's 6k+ in 2 months.

@DaddychiLL6 3 года назад

I’m starting from scratch again cause this dumb pandemic

@DaddychiLL6 3 года назад

Shut up Alex stop scamming

@alexgrinage 3 года назад

@@DaddychiLL6 huh how am I scamming?

@DavidGeorgiaPersonalFinance 3 года назад

Notice in this real life scenario, the emergency fund gave this caller options that would not have existed if he was broke.

@achavez78 3 года назад

100% CORRECT

@sami-9233 3 года назад

But, in this very real life scenario he is still 50% underfunded. Let that sink in..

@msims1081 3 года назад

That is better than being 100% underfunded

@dknowles60 3 года назад

@@sami-9233 but he makes good income. let that sink in

@roberthuster1503 2 года назад

@@sami-9233 10 k emergency fund is kinda low but I see what you are saying. This guy is not in a terrible position. He can cash flow it.

@bphatness3924 3 года назад

"I'm on the roof and I'm about to jump!" Dave: ok what's your household income

@BagsNBaguettes_327 3 года назад

🤣🤣🤣🤣🤣

@Fiiggy 3 года назад

😂😂

@ogj13 3 года назад

omg that's hilarious 🤣

@Executor009 3 года назад

Sell the roof.

@bphatness3924 3 года назад

@@Executor009 🤣🤣🤣 great comment

@MillionaireMindsetClub 3 года назад

Its a very common problem, emergency fund not enough to cover the emergency. Usually people have this issue with their medical bills.

@aplanefliesabove 3 года назад

I appreciate DR's consistency on NOT borrowing money more than anything. I recently toyed with the idea wirh taking out a personal loan... and borrowing money has definitely been my problem in the past. I snapped out of it, knowing that choice is stupid and would take me backwards in my debt freedom journey! Thanks Dave!

@AntwanAhmed 3 года назад

It’s not a sure fire amount for emergencies! But it’s a step in the right direction!

@barnoluk9272 3 года назад

This is glorious. Of course annoying, worrying and upsetting etc but you could owe $20k plus and have no money at all! Well done

@edwardlopez2011 3 года назад

No the emergency fund may not fully cover an emergency. But if there is a brick flying at your face 20mph would you rather have no protection or perhaps a couple pillows?

@alexc5369 3 года назад

I'd rather have an investment 'vehicle' that would move me out of the bricks path

@darthrex6267 3 года назад

I'd rather live in a decent neighborhood and hear about bricks on the news

@Queenieurbane 9 месяцев назад

@@darthrex6267😂😂😂😂

@BrandonMinguez 3 года назад

Just imagine if you weren't even past baby step 1 and this happened! The emergency fund is definitely meant to help in an emergency. Even if it doesn't cover the entire cost of the emergency, it's still better than nothing!

@NiceOCGuy1981 3 года назад

True, but it's better to have it covered.

@ransom182 3 года назад

Saving $4k a month with an $80k income is unrealistic.

@TeKnoVKNG23 3 года назад

Thought the same thing. After taxes and mortgage payment, cost of living/expenses, it will take them closer to 6 months if they are extremely diligent.

@LG123ABC 3 года назад

You should be able to save 30% of your gross if you really focus on it. That would be $2k a month so they should be able to pull it off in 4 or 5 months.

@johnkeeler5 3 года назад

I make $80k and only manage to save $2200/mo on a strict budget

@ransom182 3 года назад

@@johnkeeler5 Same I make $85k and save around $2k a month.

@wewhoareabouttodiesaluteyo9303 3 года назад

@@LG123ABC $6666.66 per month and that is before tax. $6666.66 - 25% (taxes) -Mortgages are at least $1000 and expenses $500. $3499 It is actually even lower if you add in property tax spread across 12 months and homeowners. Judging by John's and ransom's responses; I think we can see that it is not doable.

@JakeM218 3 года назад

Sometimes it’s worth discussing this with a contractor as well. I’m sure many would agree to a payment plan - even splitting the cost over 3 monthly payments wouldn’t be unreasonable.

@barvdw 3 года назад

Yep. Especially if you keep your promises, and pay when you have agreed to, that first time.

@elizabeth96270 3 года назад

Always feel hopeful whenever watching your video. Thanks for your guidance, Sir Dave!

@nleem3361 3 года назад

Great plan Dave! It does take time to get on the contractor's schedule and for them to complete the work too. And, as someone who works in the construction industry, you are also correct, that the fees are not due at the start of the work. They may have an initial retainer, but there should be a schedule of payments due based on project milestones with the biggest sum due once the work is 100% completed, including the project walk through and checklist. I also liked what other people have committed about checking with their homeowners insurance. Hopefully, it'll cover some cost 🙏

@Je.rone_ 3 года назад

That's why i think 9 to 12 month emergency fund is likely better

@edwinl423 3 года назад

💯 percent my kind of preference when it comes to emergency fund which is at least should be 6-12. You can park it some liquid fund so that it doesn't sit and evaporate with inflation. Also it is accessible in 24 hours.

@brockb3692 3 года назад

100%. 3-6 months is just not enough, and I would think that this pandemic would prove it. We have been in this crisis for a YEAR. Some folks have been out of work for almost a YEAR. 3 months would have lasted you until May, if that. I think 9-12 months is much better too.

@alexc5369 3 года назад

But the cost of the wall has nothing to do with what their regular expenses are

@BlueDauntless 5 месяцев назад

So save that much. Yes, Dave recommends 3-6 months. No one is stopping you from saving even more.

@BlueDauntless 5 месяцев назад

@@alexc5369this

@flisfinance5680 3 года назад

This is a challenge. This is why I always have a bit more in the emergency fund then Dave recommends just to feel safe.

@wewhoareabouttodiesaluteyo9303 3 года назад

Year and a half for that warm, fuzzy feeling *picture of a husky smiling with tongue out*

@BlueDauntless 5 месяцев назад

We’re perpetually on baby step 2. But I told my husband end goal is a years worth of expenses saved, not 3-6 months. Though that’s better than nothing.

@nicolemb105 3 года назад

I wouldn't start a construction project without having all the money. Having done alot of remodeling I know you can run into other issues that require more money. Better to be safe than sorry.

@G_Money_ 3 года назад

I already know what Dave is gonna say, but I watch it anyways.

@perotal 3 года назад

"We bought a house and then..."

@TechLeatherCraft 3 года назад

They are on Baby steps 4, 5, 6 according to him. Meaning they should have 3-6 months saved... They make 80K/yr..their Emergency fund should have been 20-40k... Not 10k. If they had actually saved only 3 months for emergency fund, they wouldn't have this problem.

@CyberSlugGump 3 года назад

I agree $10K sounds a little low, but wouldn't the target be more like $12 to 24K? I thought emergency fund was based on living expenses. Gross pay of $80K is probably around $60K net or $5000 take-home a month. This ends up being more like $4000 a month to actually spend due to them saving 15% for retirement as per Baby Step 4, and they could conceivably live on less than that.

@BlueDauntless 5 месяцев назад

@@CyberSlugGumpIt’s supposed to be.

@BagsNBaguettes_327 3 года назад

Dave should really start suggestion 6 month emergency fund minimum. I have no debt and have 6 months. I can’t imagine having 3 months, especially with the year we just went through.

@alexc5369 3 года назад

No, 3-6 is fine, the issue is the caller having inadequate insurance. You don't own stuff if your emergency fund cannot cover the worst possible scenario related to that. That's the same as saying I need $200k emergency fund because I just drove into a Lamborghini

@wewhoareabouttodiesaluteyo9303 3 года назад

He already created the baby steps. That would not be sticking it through with his idea that has been "oh so helpful" to so many people.

@ComputerElectronicTechnology 3 года назад

That is good news. Something is better than nothing. Good call!!

@dannyh9010 3 года назад

This could be a sudden problem that insurance may cover. If their outside water pipe burst, for example. Better yet, if a neighbor (or county/city) recently did some work that caused the water to divert to the caller’s home the neighbor may be liable, etc. A friend of mine had a neighbor that poured a new concrete driveway and it sloped toward my friend’s house causing new water issues in his basement where there were none before, Neighbor had to pay for remediation and damages.

@gregcountryman8770 3 года назад

10,000 seems a little low for his income. He probably just saved only for 3 months I guess.

@Spladoinkal 3 года назад

He probably was in the process of saving up when this happened.

@gregcountryman8770 3 года назад

@@Spladoinkal I rewatched the video since you said that, and he said they're(him and his wife) are on baby steps 4, 5, and 6. I'm assuming since his lady has income too, he probably thought 3 months was enough.

@Spladoinkal 3 года назад

@@gregcountryman8770 Oh wow nice catch! I missed that part.

@BlueDauntless 5 месяцев назад

@@gregcountryman8770If married, the fund is supposed to be 6 months. He definitely didn’t save enough.

@Macdaddy8124U 3 года назад

Finally, been waiting for this one.....

@athenastarbrite2955 3 года назад

Dave “ you will not talk over me, I will talk over you” Ramsey.

@benb7727 3 года назад

He is the one with the show

@pacluv 3 года назад

If you don’t want to hear his opinion, then don’t call his show.

@Executor009 3 года назад

Is his show and the guy called him.

@SeanBaker 3 года назад

Is the equity in my house income? 😂 NO!!

@teaboone 3 года назад

Caller didn’t seem interested in Dave’s answer. He was more interested in hearing himself on the show. The HELOC statement was just silly if you spend just a few days listening to DR and RC.

@ambissing 3 года назад

We just worked with a really great contractor who was willing to let us make payment as each part of the work was completed which allowed us to do everything cash only. It does take trust on both sides but it can be totally worth it

@MyrtleEntertainment 3 года назад

I would say save 3-6 months of emergency fund, then keep saving after that. That way you won't wipe out your emergency fund and have to start over.

@pjabrony8280 3 года назад

Maybe, but after that you need to start taking advantage of investment returns. Whether that's really long term like retirement or sorta long term like saving for college.

@pmc9194 3 года назад

Dave advises saving 3-6 months, after you've paid off your (non-house-related) debts. Otherwise, aside from the longevity of the time needed to save 3-6 months of cash, it's also really just "dead money", while the debt you woudn't have settled continues to incur interest. Ultimately I feel the principle behind the "Step 1" emergency fun is sound so that it ensures focus on removing the debt, and this will help you can move to the more advanced "baby steps" as soon as you can. I do however think the amount itself should be increased in order to account for the inflation that's occurred since Dave first introduced it.

@johnallen3497 3 года назад

@@pmc9194 Not to mention he says $1,000 regardless if you’re a 25 year-old single person, or a couple who is 40 with four kids. He has a one size fits all and it doesn’t make sense

@alexc5369 3 года назад

Logic behind that doesn't make sense, so you have an emergency fund for your emergency fund?

@alexc5369 3 года назад

@@johnallen3497 it does make sense, the $1000 is designed not to be enough, it is not enough in order to motivate you through BS2 and 3 so that you get to the finally having enough

@GunGlutton 2 года назад

how can they save 4000 a month with 80k a year? 15 year fixed? Their mortgage must be a lot!

@wewhoareabouttodiesaluteyo9303 Год назад

lol

@Reidbit 3 года назад

I feel like I'm early. Where are all the comments from all the finance channels trying to get views? Edit: nevermind, they’re here.

@josephcoatofmanycolors 3 года назад

they usually comment within seconds the video is posted, am surprised I ain’t seen their comment yet 😂😂😂

@JakeLesser 3 года назад

@@josephcoatofmanycolors Perhaps if they worked on creating good content, rather than refreshing youtube for Dave vids to spam on, they would have more success.

@djpuplex 3 года назад

Casey must be busy.

@peterszabo7572 3 года назад

@@JakeLesser I'm not sure. It's not easy to get where the algorith on your side. And I'm not even sure it is a bad thing to see new channels commenting. If the comment is not just: come here, I'm new on YT. I can be valueable and if it people like the content, they'll stay.

@ninjablack4347 3 года назад

I hate them. They're jumping on the "Hey if this 22 year old can make a financial channel so can I?" followed by the comments "This is so great, Dave. I am doing the same with my financial youtube channel were i talk about stocks, retirement etc" lolz can you be anymore obvious

@rvh77 3 года назад

We're on baby step 4. Have to admit that I was never down with a 1k emergency fund. More like 1k-per-person in our family emergency fund, which in our case is 5. Thankfully, we're past that now.

@WookieSenshi 3 года назад

Hmm, I think I would add that it might be a smart decision for them to double their emergency fund. For 6 months their current emergency fund is only $1,600 a month for the both of them which probably isn't enough to live off of for 6 months (for most people). I would say $20,000 for the both of them is they healthy emergency fund to have and on top of that it would have covered the entire cost of the repair had they had it.

@matthewodom5012 3 года назад

I would also suggest that he rebuild his emergency fund somewhere in the middle. Refund it at $15k for the peace of mind.

@GaPeach2018 Год назад

We’re in this situation but we have a bigger shovel and a deeper hole - medical and taxes.

@dedrabrown63 3 года назад

I would call his home insurance

@TheMechanicj 3 года назад

Not covered bro insurance covers a event not deterioration over years example if ur car paint job is faided from the sun over 10 years that’s not covered but if someone keys here car it will get painted

@NiceOCGuy1981 3 года назад

@@TheMechanicj exactly, wear and tear is never covered. Only stuff like natural disasters or freak accidents.

@alexc5369 3 года назад

Why would you do it? I think that's the guys problem

@NiceOCGuy1981 3 года назад

@@alexc5369 repair it at all?

@1.5Koreans0.5American 3 года назад

Now I’m wondering if my emergency fund is enough.

@leadnsteel1428 3 года назад

Its never enough especially if you have a house... there's alot more expenses than just a mortgage payment

@Vassle 3 года назад

Ask the chosen contractor what you can do now to make his job easier and therefore cheaper. Chuck a dehumidifier down there, start prepping the area for the work to start etc. No need paying him to move your belongings out the way

@bindingcurve 3 года назад

Exactly, I would have the drywall / carpet anything that holds moisture all ripped out, and beach everywhere.

@zachhawkins5005 3 года назад

He now knows when he rebuilds the fund, aim for 25k instead of 10k. Great question.

@BlueDauntless 5 месяцев назад

$10k seems low for a fully funded emergency fund

@tygastfield613 3 года назад

That sounds like something insurance would pay for...

@MrCander000 3 года назад

I was thinking the same thing. I wonder if he checked with his homeowner's ins first.

@TheMechanicj 3 года назад

Not covered I had a wall leak that rotted out the whole front of the house before we noticed it insurance cited improper construction not covered they cover a single event not a house that is deteriorating over time

@skylarcarlson7745 3 года назад

Sounds like something insurance would not cover.

@JasmineAvril 3 года назад

Not covered under a HO policy unfortunately.

@pimpballer3 3 года назад

This not an emergency fund issue. This is an insurance issue.

@ariv8585 3 года назад

I was thinking the same. At least hold off construction until you have the cash on hand to fund the project.

@mrststreasures9628 3 года назад

This is an "over time" situation. Insurance won't cover it.

@pigpjs 3 года назад

If he has homeowner's insurance he should check if any of the repairs are covered in his policy. I know mine has a condition for the roof and mold removal.

@billmelater6470 3 года назад

There is no fixed emergency cost. The point is to have a reserve of funds that are for emergencies. The proper way to handle it, is to keep growing it. The rest comes down to what you can manage and where you see the cost vs. risk dynamic.

@MrOfficer235 3 года назад

Work with the contractor and see if they can do it for $15k and pay half upfront. Follow Dave’s advice and go super tight on the budget and save up another $6-7k

@alexgrinage 3 года назад

Yes. Probably could get atleast 1k off but also als half up front is a given

@todd2456 3 года назад

The problem with Dave's 3-6 months of expenses is that it covers the expenses, and oftentimes not the actual emergency.

@alexgrinage 3 года назад

It's not supposed to. And that's just at the beginning you should later have a separate savings. On top of that I could stop 15% investing

@todd2456 3 года назад

@@alexgrinage Scammer.

@asymptomatic84 3 года назад

What part of emergency fund don't you understand. It can be for getting laid off, broken hvac, broken car, etc. Having some money saved up is better than none. Use your head

@alexgrinage 3 года назад

@@todd2456 how am I a scammer ?

@todd2456 3 года назад

@@asymptomatic84 because in THIS case, the 3 months of expenses he saved didn't cover the EMERGENCY!! Use your head!

@livingunashamed4869 3 года назад

People should have a 6 month emergency fund and 10K making 80K is too low should be at least 15 preferably 20K.

@alexgrinage 3 года назад

Um no. It's expenses so if they live a frugal life it's gonna be smaller. But also let's them save sooner and do extra investing

@livingunashamed4869 3 года назад

@@alexgrinage Lets say they make 5k a month and at worst they live off half 2.5k x 6 is 15k.

@Peanut-sam-tha-nut 3 года назад

Taxes, Insurance, 401k eat up a ton in peoples paychecks. Highly doubt anyone making 80k is seeing 5k a month unless they have lots of kids and a spouse for deductions to their tax bill. Even then not sure

@alexgrinage 3 года назад

@@livingunashamed4869 let's say 4 months 2.5k is 10k. And it's 3-6 months months of expenses. Also depending how you do it you could cut some expenses. 2k a month is plenty for 2 people to survive. In most of the country Plus you don't know how stable there jobs are.

@alexgrinage 3 года назад

@coco marineblu lol you just live a more expensive life than many especially me. Also they have n emergency fund so they don't have debt. So with 6.5k a month 400 on food 1200 on housing 300 on transportation 400 on insurance 400 for the rest That's 2.7k Saving& investing 3.8

@Josh-by9fv 3 года назад

He was hoping Dave would say it's okay to borrow money in this situation

@sarahsivas1313 3 года назад

Love your show

@rdb0819 3 года назад

I say do a $5k patch job that’ll allow you about 6 months to save for the remaining repairs and emergency fund. Once the job is finished, you should have some emergency money leftover as well

@yolanda5756 3 года назад

Thank God for an emergency fund! EVERY SINGLE TIME I get my emergency fund going, THERE'S AN EMERGENCY!! smh 🤦‍♀️....guess that's what it's for but.....

@bantizzle79 3 года назад

Basements are the worst especially if you live in areas with clay soil. They become money pits fast.

@AscendedRodent 3 года назад

As a foundation repair guy in texas I will attest to this

@bernadettelovespie4734 3 года назад

I looked at several very cute houses with unfinished or partially finished basements when I was house hunting ...the more I looked the louder the cash register bell got in my head. I ended up buying a slab house..no basement and I’m glad.

@yamamancha 3 года назад

Which is I think an emergency fund should be closer to $30k. That said, I had a similar (worse) situation. Bowing, mold, mushrooms growing through the floor, water pipes bursting, floor collapsing, the works! We decided to demolish the house and build a new one. Best decision ever for us. Costly yes, but I won't be worrying about such issues again in my lifetime.

@yamamancha 3 года назад

@Marilyn mc Mushrooms growing IN the house can only occur if there's moisture and nutrition. For us, we eventually learned that the moisture was from a leaking water pipe (that eventually ruptured and caused even more damage) and the nutrition was from rotting wood beneath the floors. Ours was an old house (40+years) made with natural, untreated wood so essentially became a greenhouse for mold due to the house's natural design (Japanese long house) not being sufficient to compensate for climate change (hotter summers, longer rainy season, etc.). You should definitely have your home looked at by a pro. The conditions for mold and mushrooms don't occur overnight, so it could mean you have a long-standing problem, and potentially a sick house. Better safe than sorry!

@wesjimez2941 3 года назад

That's why you need at least 6 months of expenses and another 6 grand.

@Pacificnorthwest181 3 года назад

Does he not have house insurance??

@calvinmiller3044 3 года назад

@@saulgoodman2018 There is a possibility that the basement structure is due to soil movement. In that case, move insurance doesn't cover soil movement.

@jimroscovius 3 года назад

Today's why you want to get out of debt as fast as possible so you can really build up that fund.

@phoebelu8956 3 года назад

I always leave a HELOC which I only use for this kind of issue. But I dont use it unless it is an absolute emergency. I have never used,.becoz I buy only fairly new and reliable houses.

@lady56725 3 года назад

37 year old and my emergency fund is $48K, I think it’s low. I want $600k. No debt.

@keepitreal8939 3 года назад

How much do you have invested or in retirement account? What’s your net worth?

@HowDo-YouDo 3 года назад

I kinda feel the same way. No debt is nice.

@dannyvalencia5224 3 года назад

Hm. Sell your car.

@carlkpsplucky5554 3 года назад

Rice and beans, beans and rice. For 37 more years.

@gennagresham3986 3 года назад

Quit bragging... emergency funds are for emergencies... when are you going to have a 600K emergency?

@stevenporter863 3 года назад

Dave missed the point: sometimes a real emergemcy isn't covered and realistically can't be cash flowed. Example: Emergency Medical bill which isn't reachable and three times yearly income.

@bindingcurve 3 года назад

#1 No medical insurance? #2 Talk to the hospital billing department, you will be surprised how has and fast that bill will come down. #3 Years of income bill? File BANKRUPTCY, and then you will see the bill from the hospital magically drop to a manageable level.

@jeffmorse5599 3 года назад

Med bills don't need to be paid right away so if the emergency fund doesn't cover no big deal. No insurance and the hospital will knock half off. owe after insurance they will take a payment plan.

@JiisTube 3 года назад

You can spend years paying medical bills, that's not urgent

@stevenporter863 3 года назад

The point is medical bills for years is DEBT Opposite what Dave says, no debt. He never said no debt except medical bills. Pointing out there are times when debt is unavoidable.

@bindingcurve 3 года назад

@@stevenporter863What exactly is your point? The point of an emergency fund is to handle MOST situations NOT all situations. And the edge case example you gave can be handled without having 200k in cash on hand.

@acunchevy54 3 года назад

I am all over the place with baby steps, I wish I knew all this when I was in my 20s, I would be in a good position but heck. Gotta try.

@dannyh9010 3 года назад

Going back to BS3 is still better than all the way back to BS 1 by cleaning out savings and going into debt, with the HEL(L)OC.

@mermaidshawna8664 3 года назад

If you have black mold in your home, you need that gone it’s very dangerous

@EoRdE6 3 года назад

It's really not that dangerous at all...

@RestaurantManager101 3 года назад

$34k in equity is nothing

@alexc5369 3 года назад

1 cigarette is nothing

@RestaurantManager101 3 года назад

It’s a lot of your trying to quit. 11 years smoke free

@Santaheckler 3 года назад

I’d love to hear Dave start messing with people and suggest “just buy a new car” as a solution to everyone’s questions.

@jenniferday2051 3 года назад

😂😂😂

@tynation9103 3 года назад

1 year emergency fund is probably the best bet. I rather have a full umbrella on a rainy day than a half one.

@alexc5369 3 года назад

The issue wasn't the emergency fund it was because caller has inadequate insurance. Would you have a 200k emergency fund incase you drive into a lambo? No, you take out appropriate cover

@appleztooranges 3 месяца назад

What happens if you have another emergency during this!

@jeffdorris5321 3 года назад

Nice work 🎆✨🎇

@dayvidsdays5644 3 года назад

3-6 months of expenses saved for an emergency fund. Granted, I heard from people overseas that we don't have enough in our emergency funds.

@kasonedell7228 3 года назад

Definitely don’t have enough. I disagree with Dave’s 3-6 months and would go for at least a years worth. I haven’t even moved out of my parents but I have my 3-6 mo. emergency fund and it doesn’t feel like enough and I don’t even have a place of my own

@dayvidsdays5644 3 года назад

@@kasonedell7228 2020 made 3-6 months seem like a movie trailer. Yeah. I think it's important to be prepared.

@jasonharris765 3 года назад

Curious as to how long the walls have been bad. Maybe able to use Carbon Fiber Strips to fix the wall...it's fairly easy to do and it can save the wall at more than half the cost of replacement...just means no Rebar is not present in the foundation wall currently...probably built before 1940.

@TeKnoVKNG23 3 года назад

80k income? After taxes it will take more than "a few months" to save $9000 after usual living expenses and mortgage payment.

@alexgrinage 3 года назад

Depends if the 80k is post tax witch I think it is. Dave told him to save 4k a month and he said he could with confidence.

@wewhoareabouttodiesaluteyo9303 3 года назад

@@alexgrinage It's not possible. lol $6666.66 per month and that is before tax. $6666.66 - 25% (taxes) -Mortgages are at least $1000 and expenses $500. $3499 It is actually even lower if you add in property tax spread across 12 months and homeowners.

@alexgrinage 3 года назад

@@wewhoareabouttodiesaluteyo9303 you didn't even read my comment. I already addressed your point of about taxes mortgages are not at least 1k. 210k house at 4% is 1003

@wewhoareabouttodiesaluteyo9303 3 года назад

@@alexgrinage "Depends if the 80k is post tax witch I think it is. " You were in doubt. "mortgages are not at least 1k. 210k house at 4% is 1003" $1003 > $1k

@jerome1lm 2 года назад

They caller said he could do it. That is all that matters.

@jessicabixler1658 3 года назад

What do you do when this happens over and over again...for years and years?

@fancycavegaming620 3 года назад

Sewer/Water pipes love to mess up the best laid plans too.

@matthewwilliams9200 3 года назад

just think if you were in baby step two and this happened

@chrisstaub5880 3 года назад

Which is one of the reasons why Dave tells people not to buy a house until after Step 3.

@sarahsivas1313 3 года назад

You're the best

@dacr0708 3 года назад

I don’t understand Dave, you advise him to stop 401k to save the money but he can just continue and get that matched and just borrow it from the 401k and then pay it back quickly.

@Officialsearch21 3 года назад

Mold can grow. Dave is insane with this one.

@cmoore806 3 года назад

probably not an emergency--just save to get your basement waterproofed

@Joseph-xj4ex 3 года назад

It's an emergency. Having black mold in your house, even in the basement, is very bad.

@AussieZeKieL 3 года назад

@@Joseph-xj4ex what does mold do?

@michaelsmith5583 3 года назад

Baby step 1 is an emergench fund. 10k is cute but thats not an emergency fund when you live on 80k. Your emergency fund should be at least 6 months. So 40k in this case.

@millielopez10 3 года назад

I waited and revisited the bids and found a better deal

@DK-lc8gf 3 года назад

Sell it as is

@rsafree1139 3 года назад

If you have the contractor start before you have the money, isn’t that like a debt 🤔 what if you lose your job after he starts

@TheDjcarter1966 3 года назад

And what if you are on baby steps 2 with $1000 and making $50k and it would take you 18-24 months to save that money???

@amandawithlov3908 3 года назад

Dave get excellent advice. Use your entire emergency fund and supplement the rest. Even if he can picks up an extra job temporarily to help supplement faster.

@GazzaDazzle 3 года назад

The title cracks me up

@colt4573 3 года назад

What if it were worse. Like a right now emergency and you only have the $1,000 emergency fund?

@financetruths5264 3 года назад

Assuming his tax rate is 20 % after tax income would be approx 5300 a month. So living on 1300 a month when you don’t know his situation like kids or mortgage payment is realistic ? Ok....

@JakeFromCLE 3 года назад

This was my exact thought. Does Dave assume the figures that people give him are net earnings? 4k a month seems like quite the stretch.

@Iamthenextmultimillionaire4400 3 года назад

Add $100 monthly to emergency fund even if you have met your goal because of inflation. Have a separate savings account for home/car maintenance and add $200 to it monthly.

@onebridge7231 3 года назад

Channel our forefathers. Grab a shovel and dig it out yourself. It will save money, but foundations can be fixed on your own with a little research. At the very least, do prep work to save some money.

@flashoflight8160 3 года назад

4000 a month after tax on an income of 80k not possible. Thumbs down on this advice. He needs more time to save up.

@tylerminix2028 3 года назад

Some folks are dealing with an emergency fund they started 7 years ago. Those dollars are worth at least 14% less than were when they were saved. I think Dave should recommend a $20k emergency fund for folks with a home.

@thisizdub 3 года назад

You're right. This is why it should be put some place that will grow compounded

@alexc5369 3 года назад

Wrong, he doesn't recommend a dollar amount, he recommends a Percentage of expenses, the expenses will rise with inflation, and thus, the emergency fund rises with it. Going by a dollar amount, like your $20k figure will cause the issue that you bring up

@alexc5369 3 года назад

@@thisizdub 🤷wow

@sodeadlike 3 года назад

Wait wait wait Dave is "great!" Not "Better than I deserve!" Something wrong...

@lkj0822g 3 года назад

This is where I part ways with Dave. That $18-20k estimate does not include contingencies, and I guarantee when you open up a basement wall, there will be other things to fix. If you don't fix it right, there will be more issues in the future. Trying to shoestring this repair is going to cause more stress than it deserves. Get a HELOC to cover the delta between your emergency fund and the repair, get your house fixed, and then focus on rebuilding the emergency fund and paying off the HELOC.

@bindingcurve 3 года назад

Take out the HELOC and now they are refinishing the basement. When they are done it should be bare studs and slab until they can save up the money to refinish.

@jeffmorse5599 3 года назад

Everyone with equity should have a HELOC, esp important for those with paid off homes because you might like the piece of mind but in an emergency a paid off house isn't worth anything since it takes time to tap equity if you even can. Problem is HELOC comes with responsibility to not use it. I have a 70k line on my house, never been drawn but i just reupped it for another 10 years.

@bindingcurve 3 года назад

@@jeffmorse5599 There are lots of things everyone should do, and if we did them Dave would be something else in life. Having access to 70K in low interest money can make people stupid.

@alexc5369 3 года назад

@@jeffmorse5599 really stupid advice..

@clockwork9825 3 года назад

I’m sure you have ur own mind lol! Take bits and pieces

@ImVeryBrad 3 года назад

what about insurance?

@IreneZGoodman 3 года назад

This is why I feel the $1,000 emergency fund is nowhere near smart. That's why I have a goal to save $10,000 before I continue my intent payment journey.

@alexc5369 3 года назад

Dave has never said $1000 was a full emergency fund..

@BrokeMillionaire1 3 года назад

Dear Dave, My son is having life-saving surgery next week. They are requiring payment up front. The surgery is $10,000, after insurance. I have $9000 in my emergency fund. I get paid the day after surgery. Can I please take out a $1000 loan and pay it back after my son’s life saving surgery? Dave: I never advise you to borrow money. Go deliver pizzas and make the $1000 by next week. What if I don’t make the $1000? Dave: Oh well!

@alexc5369 3 года назад

I'm. Okay.