How to Save an Emergency Fund | Motivation for Baby Step 3

[@jenniferkern1502]

I like your compassionate tone....it helps that you’ve been there.

[@BackroadMoney]

Emergency Fund story; 2 months after we got our 20k put away we had a storm of events happen. Our furnace, air conditioner, water heater and a transmission all went out the same week. We have an older home so all of those things require plumbers and electricians to bring things up to code. We call it the 20k summer. We had just started our 15% going into retirement so it has taken us alot longer to put it back than it did to get the original amount. We only have a few months left to have it fully funded again. At first it was sooo discouraging to have it drained but it did not take us long to feel so blessed to have had it to begin with. Thank God and Dave. We would have had to take out a loan.

[@brianparent4882]

As someone who struggles with anxiety, I cannot tell you just how valuable the emergency fund is for my peace of mind. It is one thing that I emotionally know that I don’t have to worry about. We keep ours in a regular savings account. It’s a large sum of money that does yield any returns but that’s not why we keep the the EF. I noticed that since we’ve been using the EF and sinking funds we do not have emergencies. What were emergencies are now planned expenses. We’ve been on this journey since 1/1/16 and we haven’t had to touch the EF but we also have sinking funds for everything. I think I’d be a complete mess during this time without the added security. We’re in BBS 6 and I still seek OT work a PT job. Some think I’m crazy but I love working and the sense of purpose and security it gives me. I enjoy your wholesome content so much.

[@homecookedflavours4381]

Great tips as always Dana. I am on baby step 2 and really trying my best to pay it all off. Looking forward to one day getting to baby step 3 🤞 very inspiring video 👍🏼

[@ahoardersheart]

We’re in Baby Step 3 and it’s so wonderful!!! Lol! We have 3 months worth of expenses right now and working diligently to get to 6 month!! I think the pandemic actually fueled our gazette intensity. We were blessed to still work but so many people I know weren’t. You just never know what could happen! They talk about the “second wave” in fall so I just want to be prepared!!

[@ofircohen1675]

So important to have emergency funds... So glad I known that before I start to invest... I keep my with Ally bank and capital one... they both have a nice returned on the money (1.25%-1.5%).

[@marcoinvesting5339]

Your channel's literally made me start a *Personal* *Finance* channel here on KZbin. Thanks for the motivation *Dana*

[@jonnaborosky8836]

First, I want to say how I love that you don't wear makeup. I stopped wearing it some time ago. I used to have a car repair/replacement sinking fund, but it always went to car repair. I had to split them into two separate sinking funds to have money to buy my next car. I never felt secure enough with only a three to six month emergency fund because I was out of work longer than that once. I prefer to have a year's worth of emergency savings, just to be on the safe side. I like your idea about hanging up cards. I just kept pulling out my ledger book and looking at it. That always motivated me to strive on and add every penny I could. The more it grew the more secure I felt. Thanks so much for sharing. Have enjoyed your channel for some time now.

[@vickieclark5931]

Yeah, if this pandemic doesn't make people realize how important an emergency fund is, then nothing will. The peace that it gives you. Like as Dave always says, the emergency fun makes an emergency an inconvenience. Your stress level drops so much. Then you can worry about the emergency without worrying about the money that you don't have take care of it.

[@thebestwillow]

That statistic about what proportion of Americans are unable to deal with an emergency over $500 is so scary.

[@ofircohen1675]

But this is the true unfortunately...

[@PassiveIncomeTom]

*I was just reading Chris Hogan's book this morning and Dave was talking about emergency fund in the beginning of the book. Everyone needs an emergency fund.* 👍

[@christinekleinschmidt4676]

What is the title of the book please?

[@OrganicFreedom]

Visualizing the progress of achieving goals is a great way to stay motivated! That’s how I became debt free too🎉

[@blackjag121]

Hi Dana, You look amazing and healthy!!! Any tips and suggestions for skincare lifestyle changes? I am currently vegan and working through weight issues.

[@vjc4502]

I jumped on the debt snowball, set up my stimulus check as step 1, on step 2 & feeling motivated. Going to refi n get lower rate & use that toward debt pay off too. Sinking funds are helpful but too many of them make debt payoff harder! They do work though So excited!

[@HeyThatsHolly]

Our bank offers "keep the change" where they round up the change from purchases and the money goes into the savings account. I set it up for Alex's account and it adds up!

[@AnnMitt]

Even though my hours got cut during this pandemic, I was able to save money because I stopped my mindless weekly shopping trips to Kohls and Target. I also learned how to color my grey roots myself. 💰 saved!

[@kristinayocum7096]

Dana what baby step is your family in? Thank you for all the encouragement!

[@nbnspokenenglish8055]

You are setting up right path to viewers ....,👌👌👌👌👌👌👍👍👍👍🤝🤝🤝🤝🤝💐💐💐💐🌹

[@kevinhughes9801]

Great vid love these on emergency funds helps focus saving mine

[@lorenaballou4513]

How do you keep up with the actual money in various sinking funds? I know you use a spreadsheet (which my husband and I started), but I struggle with keeping it all straight in my checking and savings accounts. I'm not naturally money savvy, so it's still a learning process.

[@luzheaney8545]

Dana has said before that she opened a ton of bank accounts. They’re free. For Christmas for example, she has a debit card linked to her Christmas bank account. Any Christmas purchase she makes, she uses that debit card.

[@justinlindholm2679]

I keep all of my money in one account and use YNAB budget app to separate the money. YNAB is a digital version of the cash envelope system. You should check it out at YNAB.com

[@elizabethlibero1878]

Got it! Thank you!

[@angelellis7690]

I’m a single 24, yea young male, on baby step three. I’m about half way to my fully funded emergency fund of three months was my goal. I’m so ready to invest! Tel me why I shouldn’t investment. I know but I need reminders lol. I been following the steps in order and I do not want to skip any steps!!! Focused and not finished! Trying to stay patient and consistent.

[@emmaleebuzzard1023]

So for your sinking funds... are they all in the same account and then you kept track on a spreadsheet or are they all separate savings account?

[@sailyvelasquez7167]

Hi Dana I love your videos and where can I find those steps?

[@taylornicole4316]

Love your channel and videos!

[@christinekleinschmidt4676]

When I had nothing I shopped with cash. Any coins I put in a jar. I managed to save £152 in six weeks.

[@cherylT321]

Awesome!

[@thebestwillow]

Have you heard Christmas is on December 25th this year?

[@kaitlinobrien243]

☘️🇨🇮☘️......💜💜💜

[@Doctoraiza-yn9jo]

I saw your past vedio about speech delay , about this matter can I talk to you , my baby is 18 months still don’t want to say too much.

[@rainbowphoenix8168]

Hi Dana! Happy Tuesday! It’s my first day of summer break from teaching and I’m so happy!!!!!!! Hope you are well and safe over there in Philly!

[@carolmckellar2479]

If only the government were as frugal! During the Great Depression the banks closed and away flew the bank deposits. When and if you ever went to a bank and tried to take out $20,000 cash you may find that they don't have it right away. Now if everybody did that would they ever be able to come up with the sum total?

[@Idratherbecleaning]

Dana, I’ve been a fan of your videos for a while . I would be interested to hear what you hve to say about being a professional in the professional workforce. I have a lot of respect for you and would be interested to hear your advice for a millennial. I am coming from a military background, am a female and would appreciate guidance on how to be a professional female in the workforce! If this isn’t something you hve any interest in I understand!

[@rachelc.5463]

I have my emergency fund at my local credit union. I have never renewed the card that came with my account simply because I don't want to go to my ATM and take money out nor do I want my husband to do that because he's a spender and this is what would happen. If I ever need money from account I'd give teller my account number and show my ID.

[@anafernandez7237]

This is really useful. You look great Dana!

[@princesskaitlinhazelwood4703]

We keep half in a high yield online savings account and the other half in cds. If we ever lost our jobs we would just break the cds. We never needed to do that. When my husband was furloughed last year for six weeks we never needed to use our emergency savings. So I basically learned we could live on one income of we had to.

[@fallofmanbrand]

amazing video

[@crystalgamba]

I am on baby step 2-3. I have federal student loan debt (about 26K) that would be paid off by the govt after 10 years of on time payments so 8 more years. I also need to complete my master's degree in the next 4 years. Should I pay towards that debt as if I was in baby step 2 or gongazelle with my fully funded emergency fund? I also have a home w/ 2 children.

[@anitaluevano9643]

I started a dollar challenge at the end of day i put all my ones in a large Clorox tubstarted 2 months ago gonna do it till January

[@lj2070]

I have another $5000 to save for my EF. It's taking a million years lol

[@nikita4846]

Hi Dana. You look amazing. I learn so much from you. Thank you💐

[@bargerver8796]

Scam-Demic.

[@thebestwillow]

How many times can you say "emergency" in one video? Lol.

[@mikewallin6049]

Take a drink everytime Dana says emergency😜

[@thebestwillow]

@@mikewallin6049 nice!