This is how I BUDGET my Money EVERY TIME I Get PAID | 602020 Rule

[@cakessaved5264]

Well thank you very much will start building this emergence fund. Thank you Yvonne

[@user-bc9gw1vg5y]

Very informative Thank you

[@YvonneFreely]

Glad it was helpful! Stay tuned for more smart money management tips and frameworks.

[@DainaNyambayo]

Wish we had these frameworks when we were younger but even in my 50s I will try this rule in my household. Thanks Yvonne.

[@ryddy2161]

i have the same rule. thanks

[@tate91.116]

Thank you for the advice. If I may ask, should this emergency fund for 12 months also include funds for entertainment?

[@YvonneFreely]

Glad you found it useful! Regarding uses of your emergency fund, please note that it is strictly for unexpected/unplanned necessities e.g. home or car repairs, medical expenses, etc. If you would like to go on a family vacation or have funds available for concerts, dining out,etc. (i.e. entertainment) then you should open a separate savings account - like the pocket/cash management accounts I mentioned in my previous Investing for Beginners video. ;)

[@rendilecmammbonani9080]

Thank you👌

[@YvonneFreely]

Thanks for watching! Let me know what topic(s) you’d like to be covered to help you on your money journey.

[@johnsaru1]

You are teaching good!

[@YvonneFreely]

Thank you! Glad it’s helpful.

[@mahlatseselwane7723]

So where would a car fit in these categories....😢

[@YvonneFreely]

So a car actually fits in the 60% (needs) but depending on your priorities a portion of it can also spill over into the 20% (wants) portion. 😊

[@tendaisigauke1529]

Just explain how much your emergency fund should be, please. Is it like putting money aside enough to pay 8 months of your debt?

[@YvonneFreely]

An emergency fund is meant for unplanned expenditures and or financial emergencies. Like unplanned car or home repairs, medical expenses, or to cover you in the event of loss of income (your salary for instance) so you would need to be able to cover all your fixed costs comfortably.. so yes 8-12 months of your fixed expenses and be able to cover some variable expenses that may also come up. If your mortgage, car, medical aid and other fixed expenses cost you R20k per month, it’s advised to have a R160-240k emergency fund. This is built over a period of time to avoid financial strain.

[@tendaisigauke1529]

@@YvonneFreely Thx, very tough tho but necessary.