Is a 3-Month Emergency Fund Really Enough?

Is a 3-Month Emergency Fund Really Enough?
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[@customtheatres]

12 month emergency fund here. My boss can’t scare me anymore

[@shayemoore]

LOL exactly. That's a nice cushion and I'm sure it gives you a peace of mind.

[@ThePTSDRetreat]

Truth: the progress is addictive.

[@coryulrich6489]

So freaking true!

[@Luffa187]

Exactly! Your quality of life actually goes up, even when you're in the middle of it. Before people start they think that's it's going to be a painful journey. What they're doing prior is what's painful.

[@JamesWilson-sb9iq]

@@Luffa187 Then take the red pill

[@hurt1704]

I prefer a 12 month emergency fund myself. Probably overkill, but It makes me sleep well at night and I feel comfortable

[@barvdw]

It depends on how liquid your investments are, I wouldn't shy away from investing, but wouldn't tie up everything in assets that are hard to sell. Which is why I don't put excessively into retirement funds, because of the high penalties when taking out that money. It's why I don't put everything in the same type of investments either. If you feel safer with that money in cash under your pillow, you can do that, but it's going down in value as we speak. In the bank it's hardly any better.

[@hurt1704]

barvdw It’s only 25 grand. Not like it’s a couple hundred, but I agree.

[@eastboyinc6873]

good. I already make it.

[@Syne1nz]

Nothing wrong with that! Good for you

[@jlozano180]

Amen

[@wadesuhr]

These two co-hosts are great together.

[@jimhandler1129]

they both found other jobs

[@nchen09]

They are. I miss them.

[@balazsbuza7713]

First time I've gotten to like someone after 2 minutes of listening to them without even seeing them, this caller was really cool.

[@djw8888]

My current comfort level for emergency fund: 12 months. Too much weirdness going on right now. PS I'm in Texas.

[@Michael-vf2mw]

Agreed.

[@AnnA-gq3jd]

Yes 👍🏾

[@Tunechi65]

Bad weather will wipe that out quickly with how high y'all electric bills are

[@armyguy4124]

The most terrifying thing i have ever heard " I have seven daughters"

[@kevinkane1405]

I guess he never thought about stopping

[@solidshake12]

Scarier than some war zones, probably.

[@armyguy4124]

@@solidshake12 😆

[@ivaylorusinov655]

when you want a boy really really badly, but nature is like, nope.

[@TelmoAmaro]

The day Walder Frey called the show for financial advice.

[@clarks2001]

I didn’t have any mental reservations with saving my first $1000. I had more mental reservations with buckling down to pay my debt because it means I had to get uncomfortable with life. Now I’m debt free, still uncomfortable but definitely feel better about the leap I took. Now I have 3mo of savings and I’m gonna keep putting money aside to make it into 6mo.

[@tjbalistic]

Well done!

[@spot_of_tea53]

Same boat.

[@MrJay197409]

If I had it my way I would have 50 year emergency fund. In reality one year would be nice.

[@wewhoareabouttodiesaluteyo9303]

The highest you would have is a 20-30 years and it is called retirement.

[@JohnsonKayla12]

I’ve heard if you have kids you should have a 6-12 month emergency fund.

[@TonyMaine915]

I agree

[@aaronbrutus2654]

Definitely a year just to be safe.

[@tjnaples]

Not from Dave.

[@inthebooks3947]

Honestly i don’t agree with paying off debt first if you have kids it’s so risky with just a 1,000 fund only.

[@inthebooks3947]

Imagine having 20k with kids and 19k of debt. Then you pay it off and only have 1,000$ then you lose your job & get evicted

[@justfine77777]

Anthony is the heir to Dave’s throne. I love his whole game. He gives sound and confident advice.

[@randymorrison1761]

This aged well

[@justfine77777]

@@randymorrison1761 yeah, not so much. 🤦🏻‍♂️

[@zzzarkka]

@@justfine77777 Why, what happened?

[@justfine77777]

@@zzzarkka be gone

[@WeBeatMedicare6969]

Yeah, this comment didn’t age well I guess

[@DaveM-FFB]

Look into teaching college level at a university that offers free tuition for children of workers. Yup, it's a thing!

[@alycewich4472]

@Financial Fast Break - Excellent idea, I've know several people who have worked at the local private college as office workers who were able to do the same thing. So you don't necessarily have to be a professor to do so. Well worth checking into.

[@lmelior]

Considering half of his income is absolutely guaranteed, he could very easily have an even smaller emergency fund based on specific unexpected events like a car breaking down or a leaking roof or losing an HVAC unit (I say "unexpected" because if you know one of these things is coming, then you should be saving up for a replacement separate from your emergency fund). One of the main reasons for the 3-6 month time frame is that's how long it should take to replace your income in the event of a job loss. But if he can make that ~$4k/mo stretch in the event of losing his teaching job, he doesn't really need that time-based emergency fund.

[@whitney6641]

I think refers to when people try but it doesnt work out, not that they just thought about doing something, but didnt act.

[@johnsantiago4810]

There is no such thing as stable job. You can get fired at anytime.

[@RD-nc8xt]

Being a local city Class A Cdl truck driver deliverying LTL freight in the city you live in pay is 75k plus per year ..Mon thru Friday. Start times anywhere from 7am to 10 a.m daily.

[@byrubiCoC]

My currently monthly expenses are no more than 1000$ and my savings are roughly at $14k which would mean over a year of emergency funds but it’s because my income for example two months ago was 2k a month , this month is 5k next month will be 3.5k so if your job isn’t steady then it’s even more important to have a big emergency fund :)

[@ladykemma3]

Bs3 retread here. 3 months not enough. 2 good emergency back to back had me back on bs 3 several times. I gave up on the program. Back on, aiming for 6 months. Know this. Bs 3 is fluid and will need to be topped off now and again

[@truth123more]

'Sell the car'

[@jsong8282]

Ok, first of all, the car is stupid. It goes. Today.

[@PublicNuisance2K24]

“Sell yourself”

[@davidmilhouscarter8198]

I’m debt free save the mortgage and I have slightly more than 50% of my gross annual income saved and still don’t feel completely comfortable.

[@HowDo-YouDo]

Right?

[@miketheyunggod2534]

I have a rest of my life emergency fund and everyday is an emergency. 😛.

[@NaNa-lt1po]

We are seeing less and less of dave 😣

[@EB-gt1pq]

Yeah where is he anyway?

[@NaNa-lt1po]

@@EB-gt1pq semi-retiring 😢

[@myafrosheen]

Succession planning is a must, imagine if he didn't prime his successors and the show just disappeared completely once he decides to leave. His philosophy is designed to long outlive him and it is sensible that he is doing things this way

[@CubsFan2812]

@@NaNa-lt1po for real?

[@MichelleGold]

Love these hosts. What are their names?

[@valeria-militiamessalina5672]

Fatherhood is not for everyone, and that is fine. For those men with avuncular tendencies fostering might be a better option indeed, there are needful children everywhere. First and foremost we must sympathize with the needs of humanity as a whole.

[@AVG336]

It's amazing that you can recieve lifetime of disability WHILE making more than that amount working.

[@Packman33]

He got injured in the military probably got shot

[@EngineeringGoneWrong]

A good majority of that is is retirement im sure. The disability part may only be say 300 a month or so

[@tjnaples]

All hard earned. It’s amazing how little civilians care to know about the wear and tear the military takes on your body and mind.

[@KP-uz3nk]

@@tjnaples 💯

[@WarrenRichardson]

Simple question - if I'm single & renting would that tend to be less months emergency fund than someone who is married (including kids) or owns a house?

[@keithclark8030]

Being single you need more emergency funds. If a single person loses their job, there is no income.

[@jarrettpierce5626]

Military wife.. never worked just had babies for 20 years

[@investinstyle-financeinves1181]

Emergency funds are designed to protect you against a sudden loss in income. If your income is guaranteed, the need for one isn't as great.

[@ThePTSDRetreat]

I have guaranteed income. It's not about the job. It's about the unexpected. Which happened. Be prepared.

[@blackworldtraveler3711]

And that’s why so many people borrow(or try to borrow), forced to work a second job,beg, sacrifice other financial responsibilities/commitments, drain their retirement being penalized with added taxes,etc..when there’s an emergency No thanks. I’ll stick with “nothing is guaranteed”. A friend of mine had to pay over $30k out of pocket after pipe burst in attic two weeks ago in Texas. And this was after insurance claims. But she’s like me and keep a large emergency fund guaranteed income or not. We also read our insurance documents,know what’s covered, and aware of how expensive things are to replace.

[@babatundeonabajo]

Very few people in the world have "guaranteed income". Unless you are the Queen or a Congressman/woman, your income is uncertain.

[@bionicwoman9884]

It's not only for income. It's for unexpected expenses like medical bills vet bills etc.

[@WeBeatMedicare6969]

So, what happened to these two?

[@senuauwu]

So we better do a year Emergency Fund ??

[@ACCOMPLISHEDSHEIS]

YEP! IT HAS HELPED ME DURING THIS PANDEMIC CRISES.

[@SeanBaker]

Indeed!

[@necelashawn7850]

Yes ma’am I’m working on getting my year emergency fund I don’t trust anything less

[@senuauwu]

we dont want a pandemic hitting us and were are out of job and then sh!T starts coming and we dont have where to take money from

[@SeanBaker]

@@necelashawn7850 but but interest! 🤣

[@jimmylegs06]

Question: Why is it on the parents to provide a college fund? I understand having maybe a savings account that you can help you kids out a little IF THEY DECIDE to go to college. Educate them on the price of college throughout their life. But, kids make their own decisions come college time. And thats on them. This "saving for kids college" is such an old fashioned way to thinking, IMO.

[@t206kid]

Its the old way of thinking. Its like the old tradition that the bride's family pays for the wedding

[@aolvaar8792]

Why do married couples with kids have higher household incomes? Perhaps it is because they are not primarily driven by greed but something quite the opposite: a willingness to make sacrifices so their children may live better lives.

[@xsweetheart293]

Here is my take on why parents need to save for their kid's college fund: College prices has increase and will continue to increase. You want your kids to be focused on the school and not have to worry about working. They will or almost will be debt free just like you.

[@Emophilosophy]

Dave calls it the gazelle

[@PublicNuisance2K24]

“You gotta get busted into this quick”

[@stargellmosley]

Powerful

[@robanddawnramcharan6408]

It is if you don't have any, you know, emergencies.

[@jeffdorris5321]

Nice work 🎇✨🎆

[@Beanz8907]

I only have 17k in my E fund. Is that enough? Im also in the military and am currently in Korea. Should i save more this year and add to my E fund?? I have no debt

[@Michael-vf2mw]

What is the 17k as a % of your yearly expenses?

[@salvadorgutierrez4474]

Military funding isn't taxed is it?

[@thinkforyourself9334]

Retirement pay is taxed..Disability is tax free.

[@hall0341]

Tre is correct

[@F15Bluto]

@@hall0341 Partially, maybe. If not more than 50% disabled, it is taxed all the same.

[@madisonandthefarm]

No not enough

[@jeffwvu4602]

It's plenty enough for savings unless you're a bum who anticipates not wanting to get a job for a whole year if you lose your job.

[@jameson6930]

Why doesn't he send his kids to Military.

[@F15Bluto]

Probably letting them make that choice.

[@jr8184]

I’m 16 I just bought my own bmw with my own money for 8k after finance and I just need 1k left to pay out and I’m trying to sell it as soon as I pay it off and get a cheaper manual car and save up the rest now what do you recommend me to save up for? I need a goal here

[@jr8184]

@Brett McKinney I’ve haven’t consider college one bit if I’m being honest I wanna get my cdl at 18 and start getting a job with a trucking company and get enough experience to where I can work on my own and by the time I’m 18 if I keep saving up I should have about 40k I can buy my own truck and start making more money idk what do you think?

[@noellerobinson8752]

@@jr8184 trucking idea is good

[@t193u]

@@jr8184 Good plan.

[@alexfonseca2063]

Anthony wishes Christy was single.

[@dontworry1568]

dont most of us.

[@kwfown]

Think she had something, more personal, in mind @4:39 😅

[@0.o650]

This caller is so annoying.

[@johnmirbach2338]

😁👍👌🖖✌😎

[@brianl98]

Stocks are down. Is it OK to pull my emergency funds in and buy them for cheap? I am 90% confident that I can nearly double it.

[@wink1814]

That's not what your emergency fund is for.

[@Gajdosh]

That sounds like greed and poor risk management 😁 I wouldn't do that and stocks are not down

[@vicepresidentmikepence889]

Stocks are down???

[@redcomic619]

What makes you think you can double it? You could very well lose it all.

[@BeeTimesTwo]

@@vicepresidentmikepence889 bad week for S&P at least but nothing catastrophic

[@charlesjohnson7222]

What I want to know is: why on earth is an able earning person being paid disability payments on top of a military pension? Seems odd for someone to be capable to earn a living as a teacher and still be given what he seems to not need. Help me out here, people!

[@KP-uz3nk]

Its the wear and tear on our bodies. Some of us are never the same again. Even if you are able to earn it's about the effect and toll our service had on us. Personally speaking for myself, the rehab never stops, the medical treatment, the physcial therapy and the pain never goes away.

[@MsSuzyQ2U]

He earned it by serving in the military for 20+ years.

[@adamwest5625]

This guys could’ve been living a stress free life right now with no wife + 7 daughters. Good luck to him his wife doesn’t pull the pin on the divorce grenade...

[@ayela562]

Congratulations on your misogynistic opinion. I’m sure it makes you super popular with the ladies.

[@katy3901]

@@ayela562 It's normally the people who couldn't ever get a wife that are so adverse to other people being married...

[@ew2645]

Incel party of one.

[@BeeTimesTwo]

OR he's filling very fulfilled with a happy family and planning for their future.

[@spot_of_tea53]

This could happen very easily. What's the divorce rate these days?

[@Westerdahl]

is it not extreemly illegal to collect disability checks when you are fit enough to work? did he just incriminate himself on live tv? xD

[@PlethoraShae]

I really enjoyed this back and forth between Anthony and Christy.

[@mgaming7]

i know it sounds crazy, but you need a 1 year emergency fund. seriously. (yes, you start with the $1000, THEN go the rest of the way asap)

[@wewhoareabouttodiesaluteyo9303]

Year and a half for that warm, fuzzy feeling. Once you put that into interest, chances are you will not need to work a job solely for income.

[@Intellistan]

See how Anthony is saying "yes" and "totally" and "I agree" as opposed to saying "NO, totally" or "NO, I agree".... Chris is so bad about saying "No" before anything he says whether he agrees or not. Could watch Anthony all day because it's not so cringe. "Lemme tell ya something", or "listen to me", or "NO I completely agree" gets so old, especially on a show like this. Subconscious conversation controllers do not have a place on the Ramsey show.

[@noellerobinson8752]

I veryyy much agree

[@hansonallie]

No, I totally agree w/ that! 😸

[@Mel-tw6qv]

You have a problem with how Chis talks to people, but not Dave? Really?

[@Chet_24]

Having 1 yr saved up is ideal. Being able to tell your boss to stfu if you've had enough is very empowering.

[@MillionaireMindsetClub]

3-month emergency fund works for most but there isn't one answer for all. As Rachel said, there is room for customization.

[@CaseyBurnsInvesting]

Christy

[@fireseeker4him]

If I waited until I was motivated to do certain things, they’d never happen.

[@patricksanden3575]

The drive for me has been “zero payments.”

[@costco_pizza]

And why do you want zero payments?

[@babatundeonabajo]

If you are in the position to have a year's worth of funds as an emergency, you are in a good position to begin with. To put it into perspective, most businesses do not have a year's worth of income saved up.

[@Violet._.PhoeniX]

@The Ramsey Show - Highlights why are you using the Ramsey show name? Are you from the company? Does the Ramsey show know that you are using their name?

[@Lon1001]

The most motivating thing is dopamine and other neurochemicals, and progress is the way to get a continual flow of them to your brain's reward centres.

[@swn69]

I have a number I am comfortable with. My mortgage and utilities and such are around 3k a month. I don't like my emergency fund to dip under 25k. Everything over that gets dumped into the house each month until it's paid off.

[@wewhoareabouttodiesaluteyo9303]

-Mortgage-, -utilities-, car insurance, home insurance, property tax (if you do not pay this, all the paying off is in vain)

[@carena8478]

How does one collect disability and work full time? Am I missing something?

[@thinkforyourself9334]

It is military disability from the VA...It's normal for a veteran to receive VA disability and work too.

[@foford2010]

For example loss of hearing from maintaining jet engines can net you a disability check, but doesn't stop you from working full time.

[@carena8478]

@@foford2010 Interesting, I didn't realize that. Thanks for responding!

[@bsm6776]

They have percentages of disability.

This could be different for anybody, but love the analysis!

[@nicholeknight1893]

Thank you. 😊 the first step is hard.

[@vicepresidentmikepence889]

I agree, mostly, with Ramsey's principles, but I've always thought a six month emergency fund is way too short

[@nazariit171]

Too much you mean?

[@vicepresidentmikepence889]

@@nazariit171 NO, It should be at least one year

[@shamar8068]

@@vicepresidentmikepence889 definitely just starting up mine

[@AliasProductions801]

That’s a waste of compound interest.

[@vicepresidentmikepence889]

@@AliasProductions801 I figured that's why Ramsey says that, but having comfort of mind is alot more important than interest

[@earthsteward9]

On The Financial Diet one guy said he had a 12 month emergency fund because he worked freelance who was always bouncing from contract to contract

[@crack1270]

I have been putting my emergency fund into a roth ira cause i am 29 and want to be a millionaire one day, no kids, not married and i make 100k a year.

[@dabd8175]

Thats a bad move.

[@AliasProductions801]

Put it in an ETF so you can access it. Roth IRA has ridiculous fees.

[@collinis1]

That’s great that you are filling up your Roth. But if it’s in a Roth, it’s not an emergency fund. If you actually need the money you will lose any interest you gained

[@dabd8175]

@@AliasProductions801 u mean a taxable account lol?

[@blackworldtraveler3711]

I suppose you will realize just how important the Roth is when it’s too late.

[@omarlopez.photos]

who else is thankful they stopped using the opening music at the beginning of their videos??

[@danieljohnson4418]

I recommend a 5-year emergency fund.

[@noellerobinson8752]

.. Why 🤦🏽‍♀️

[@stevenporter863]

Five years? Why?

[@danieljohnson4418]

The steering wheel of your vehicle feels different in your hands when you're commuting to work and you know you can tell your employer to fly a kite at any time because you have a 5-year emergency fund.

[@kitsontuli2713]

I'm with you. I'm paranoid

[@komalyasmin1332]

@All Day 😂😂😂😂😂

[@edd3055]

6:23 note for myself

[@alisagraham6513]

My, I'm enjoying this videoooo!!

[@snobbybeauty2210]

She’s gorgeous

[@nicksnay2409]

Simp

[@DanielGarcia-zz9eg]

Don't worry about college. Tell them girls to start a KZbin channel Sign up for Scholarship programs. Dont kill yourself putting them thu college. So many ways for them girls to make money with soical media. Put them to work

[@AnnA-gq3jd]

Haha 😂

[@mikkocarlos5913]

Good info right here!

[@jakevote8978]

I liked for Christie

[@ACCOMPLISHEDSHEIS]

NOPE. A YEAR WORTH OF EMERGENCY FUND OR MORE IS ENOUGH. NOT EVEN SIX MONTH WOULD HELP.

[@AO-nr7kl]

Please make sure you and your wife have life insurance. That would be devastating for something to happen to one of you and not have a will and life insurance.

[@noellerobinson8752]

excellent, excellent advise

[@dark_winter8238]

@@noellerobinson8752 military benefits would probably transfer

[@idkmane9645]

Another amazing video

[@jeffreystanley4991]

Can he not produce a Y chromosome?

[@EB-gt1pq]

What does it matter?

[@aolvaar8792]

Maybe he's a pilot.