Should You Have More Than a 3-6 Month Emergency Fund?

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Information Should You Have More Than a 3-6 Month Emergency Fund?

Title	:	Should You Have More Than a 3-6 Month Emergency Fund?
Lasting	:	7.03
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My monthly expenses are about 2k a month, so 6k emergency fund seems pretty lean But I have a 2 income household and my job is extremely reliable
Comment from : PhoenixFPV

“Daddy of cash reserves” br🇺🇸
Comment from : John Doe z

I just read "The Two Income Trap" by Elizabeth Warren and her daughter and the thesis in the book is contrary to what Brian says Brian says that two incomes are better than one, "One income is going to lend itself to higher cash reserves than two incomesOne of us loses their job, we'll just lean on the other one" The book outlines that this logic can be flawed if the family's lifestyle depends on both incomes When one income is lost, they can no longer afford the necessities, ie mortgage/rent, child care, health insurance His logic is sound if the family can afford to live on one income-- the other partner can go to work to bring in additional income while they supplement with their cash savings I would say the advice is more nuanced and depends on the household income vs expenses I think the 3-6 months savings should be based off total household expenses and should skew towards 6 months depending on the risks involved
Comment from : Aaron Liss

If you have multiple Rental Houses (Paid for) and your typical Vacancy is 2-Weeks! So, you have multiple sources of income! You also get more than enough from Your Rentals to caver unemployment!brbrCan you trim down your Emergency Fund?
Comment from : Buy&Hold

Yah My wife and I are 47, for the first time ever in my life we bought a CD and TBill equivalent We've been saving for some upcoming short term goals and after investing in growth oriented vehicles for so long, we almost forgot about how much the rise in interest rates are really a sweet deal for short term saving
Comment from : NeverClever NorWitty

I’m making $555 a month in interest from savings account
Comment from : 5x 10

Once you reach a certain level of wealth you no longer need an emergency fund
Comment from : PeachFuzz

I've said this on previous videos After being out of work for nearly a year in 2010 I aim for having a year's worth of expenses in my emergency fund
Comment from : Jacob Side

54 year old here with a 12 month emergency fund I’m looking to expand it to 36 months by the time I retire in my early 60s
Comment from : Tom

If you don’t have at least a $100k in cash you are poor
Comment from : ahdfakjh ajfdandkj

Does it make sense to pay tax on earnings from 4 interest when you have a 3 mortgage? I would write a check for the mortgage and be done Trust me, that money will quickly be saved again when a person is debt free brbrSunday, I had a friend say the same thing He is earning interest and paying taxes on it while paying a mortgage I JUST DON'T GET IT!!!!brbrI think cash makes people feel wealthier than they are in real life My friend clings to his cash I just live debt free I probably feel poorer than I actually am That feeling probably keeps me from spending as much money as I would with more cash For instance, I ate a salad for lunch today that I prepared myself I bet my friend hit a restaurant atleast once today
Comment from : Annie Alexander

I have a 6 month fund + a “five year fund” that could cover replacing two vehicles, a few family vacations and house renovations
Comment from : Nicholas Martinez

I'm in the same boat with the mortgage, was putting an extra 1k a month towards it (3875 interest) but recently opened a new high yield account at 5 and shifted that extra payment there for the time being My existing high yield is paying 375 which is still pretty good but wouldn't have made me stop the extra paymentbrbrRegardless the plan was to write a check a year from now and pay off the mortgage, which I can still do if rates come back down, but might as well have my money work a little harder for me while savings rates are high
Comment from : Tialian

6 months plus sinking funds Alot of people forget about sinking funds
Comment from : K Roddy

I just use my HELOC as an EF
Comment from : William Forsythe

I can find 6 month CDs at around 5 (it varies from day to day) on Fidelity I've drawn my cash down to 3 months of reserves, and have started a short term CD ladder The question for me is what the value of liquidity is
Comment from : Independent George

I pushed to a minimum of a year in my emergency fund especially when going into a lot of uncertainty The peace of mind is worth it
Comment from : Wealth Bytes

YES 2020 showed us that we dobrI have about 75k in emergency funds
Comment from : Saul Goodman

I think it also depends on if you are a homeowner, and the age of your home I am a homeowner and my house was built in the early 70’s I have a new water heater and a 2019 HVAC, but still keep about 6-7 months of expenses in my emergency fund because of unexpected repairs needed on my home If I was a renter, I would only have 3 months of emergency fund
Comment from : SimpliJake Finance