How Much Should REALLY Be In Your Emergency Fund?

[@educatedwanderer9293]

I have a 6 month emergency fund in HYSA and 7 sinking funds which are partly funded. I realize I could lose my job or be unable to work but I have another 7 years in a brokerage and a short term disability plan. If I have a long term medical issue then I might also apply for disability via social security.

[@andrewroth9175]

How many 20 or 30 or 40 somethings are buying short-term disability insurance? You can stop paying that If you have a 6 month emergency fund getting 5% with your cash. All you need is LTD long-term disability insurance, which kicks in after 6 months.

[@zerokool-2058]

Is good to start with a 1 month and then 2 months and then 3 months and so on. Your emergency fund reflects what your monthly expenses are. If you lose your job, how quick can you land another job, while you’re job hunting you still have to pay bills. Living under your means, also helps.

[@brucesmith6868]

Thanks Dustin and Eric love the format an all the information that flows

[@martinguldnerAutisticSwanGuru]

Partly because I work remotely at home and do not own a car; think I might purchase a car in the future. I have about 3 years of my current living expenses in cash; earning 4.3-5.25% in two different banks and US treasury money market fund. How I got most of that cash was from sold assets from brother's estate in 2020. Most of my investment portfolio I also inherited from my brother's estate.

[@desiv1170]

Good vid. I've seen some investment advice say you need two years or more of your expenses once you are retired... That advice concerns me... I mean, yeah, we'd all love to have a larger emergency fund, but that seems high and problematic. Problematic because, how are you going to build that much by the time you retire? You are going to be taking money you would otherwise use for your investments and/or you are going to not retire when you want/can. They don't want you to touch your investments when the market goes down, which I get. And I think for those calculations, they are also assuming you're paying all of your expenses with only your investment money. But if you have a pension and/or social security, a lot of your expenses will still be covered without pulling from your retirement during an economic downturn. If someone is saying 2+ years, they could easily be saying you need $50K plus (and maybe way over that), and that is a lot of money that isn't gaining you higher interest...

[@Red_1976]

It is taking so long to save 6months! I’ve got 3 but always falling behind on it as dipping in.

[@blackbutterfly233ify]

use sinking funds instead of your e fund

[@kckuc310]

Yes 3 to 6 months is just guide, everyone is different. And yes I have more then that

[@wandasworldmoneyjourney5788]

Great content

[@jhnhouseholder]

Yes, Cody, 68 is cold inside! But the interruption with the graphic was great.

[@swim31swim]

Eric, We keep it at 68°. Aunt IRMAA says to put on a hat.😂

[@dancostandi]

Hey Eric... there's a follow-up to your joke. "Why do elephants hide in trees? ..... Why?... Because they're good at it. Have you ever seen an elephant in a tree? ... No. ... See it works."

[@vmobile890]

Why not a emergency fund alternative to death ? At 3 to 6 months what’s magically going to happen . Need alternate income even if it’s yard sales then sell on ebay any way to make money .

[@spiritualphysics]

Now google tree elephant, hit images and be shocked Thanks for sharing👊🏾😎👍🏼

[@Quincyq15]

What if the market crashes 50%? Wouldn’t you rather have it in cash?

[@Quincyq15]

So someone with a lot of cash are you just putting it all in stocks then? In a taxable account? With these valuations today? My Roth is maxed.

[@KumaCarter]

Whats the opening music?

[@ccrx2640]

Because their so good at it.............that was funny

[@Zorlig]

Someday someone will figure out how to do a proper Monte Carlo on emergency fund sizing. The problem is that emergency fund sizing is all about conventional wisdom and has no actual math behind it. The ideal is probably zero.

[@marysvara5017]

68 isn't cold - I agree, they're babies

[@RubyOliverm5l]

I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024

[@JulianBenjamin3d]

Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.

[@SofiaJames9H]

Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.

[@SebastianNoah5e]

Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them?

[@SofiaJames9H]

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..

[@SebastianNoah5e]

I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you

[@matthewharrigan3568]

Emergency funds are a red herring. Get a high savings rate and accumulate some investment assets, and then an emergency fund doesn't matter that much. If you don't do that an emergency fund isn't a magic elixir that will fix your finances.

[@kckuc310]

I’m not the norm I have 5 years plus in emergency

[@Quincyq15]

I’m the same way lol

[@educatedwanderer9293]

I have 7 years plus, in a brokerage, another year in cash.

[@caddie1a]

Same!

[@WhimsyWendy]

Love it!