Should You Have a 3-Month or a 6-Month Emergency Fund?

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Title	:	Should You Have a 3-Month or a 6-Month Emergency Fund?
Lasting	:	6.10
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Views	:	21 rb

That was helpful!
Comment from : Adoraaa Tha Creator

Thanks for this video I was wondering the same thing I did not think of these considerations, income level, job, significant other, persons relying on the income and stage of life This advice helps a lot Thanks
Comment from : Trudloops

I don't believe in emergency funds Why sideline money in case of a low probability event? If you invest in a taxable account instead and at some point you need to sell stocks in a down market, over a lifetime you're still way ahead mathematically Emergency funds are the extended warranty of personal finance
Comment from : djee02

New to the channel! Is the guy on lefts last name Goodell?
Comment from : Reggie E

Why did he sensor the word? “fan “when the you know what hits the you know what Why is “fan” a bad word lol
Comment from : Nate

I still dont really see the value in "emergency funds" can't you still invest that into stocks or a mortgage offset account and still have the money work for you - and keep it fairly accessible
Comment from : perthboyxD

Multi generational household 12 month emergency fund as 4 generations of members rely on it Everything past 12 months is in taxable brokerage
Comment from : Anderson Legacy

My emergency is at 12 months because it took me 6 months to get my first job out of college and I’m on a 6 month government contract right now, so I might be unemployed again and I need extra cushion because entry level positions are super competitive
Comment from : DividedShark

OMG! I'm internet famous 😀 lol Thanks so much for taking the time to answer my question I had an idea of what I should do but it doesn't hurt to ask The Money Guy Show 😉
Comment from : Lynn

I have no idea how big of an emergency fund I'll need Like I have no idea what it costs to live in the real world I live at work and will have to move as soon as I no longer work here
Comment from : Pumpkin

Save nothing! Spend it all on a tricked out van and travel Or collectible sneakers and stylish clothing Or dump everything you have into a home and car to impress your family and friends
Comment from : eedre

I would do 6 months if my significant other worked at the same place as me, especially now that more companies are struggling financially Don't want to both end up unemployed
Comment from : Genevieve Tripp

While conditions are good and a job is maintained, emergency funds should never diminish The only things that need to be accounted for, I think, are inflation and any lifestyle changes, both of which may cause one to need to reässess the emergency funds available to them So, after the threshold for safety is crossed, one (hopefully) never needs to worry about saving up that money again Getting it out of the way and hitting later FOO goals afterward may be fine Unlike, say, the IRA contributions, there is no annual resetting for the emergency fund Maybe just out 5000 $ per paycheck in there after crossing the threshold, in order to keep pace with inflation and lifestyle creep
Comment from : Curtis Franks

GEORGIA IS GOING DOWN THIS WEEKEND!!!!!! GBO!
Comment from : Luis Velazquez

After a layoff it took me almost a year to get a new job So I’m working on a 12 month emergency fund
Comment from : TheJeanean

Yes you should if not more preferably 1 year!
Comment from : Sarah Goss

It's not only about your job, but allso your health , to have a emergency fundbrSo 3 months is not enough, I think at least 6 months
Comment from : Paul R

My wife and I only have about 3 months ($20k) for a couple reasons:br1 easy to replace jobsbr2 We have six figures in a taxable brokerage accountbrIn my mind, that's several years worth of expenses that we can pull from monthly, like a retiree would It only takes two days to sell some shares and transfer the cash into checking Once you're firmly in step 7 of the FOO, step 4 can be more relaxed Furthermore, steps 1, 4, and 7 are related: have quick access to cash if/when needed/wanted The further along you are, the more cash needs to be available
Comment from : Chris Reno

good answers
Comment from : Chris Reno

Completely agreed! The higher the level your position, typically the longer it takes to find another job at or above that level
Comment from : Anonymous1

I only have a 3 months I maxed out my Roth and now am going back to the emergency fund so am hoping to get that to six months by the time I start putting money into my Roth again in January Though
Comment from : CaraMarie13

I have 3 months off every year almost
Comment from : Papa J

I am a firm believer in a 6mo emergency fund if you are a home owner My house, not in a flood zone, flooded this summer Cost me 3mo of EF cuz I did most of the work myself Some neighbors spend well into 6mo EF If my car wasn’t a Honda I would have also needed to get another car You can believe I have flood insurance now
Comment from : robdogracing

I would like to see them explain the pros and cons of using the Self Directed Brokerage option in a 401k, what are some the the benefits (more investment choices) vs cons ( ???) can you put it back into your 401k vs rolling to IRA at job switching, better to do with Tradition or Roth 401k money to keep traditional out of IRA for backdoor Roth ?brbris there ever a reason not to use the Self Directed Brokerage option inside a 401k?
Comment from : Ryan Mortensen

I’d have a minimum of 1 year emergency fund
Comment from : Lawnfella

1 yearbrWe can have another lockdown in the future
Comment from : Saul Goodman

One thing I wish they would touch on that nobody talks about is insurance premiums when unemployed If I lost employment and had to pay full premiums for COBRA, my monthly budget would increase 20
Comment from : Michael Austin

I have more than a year After a being out of work for nearly a year in 2010 I made the decision to never be in the situation were I run out of money again
Comment from : Jacob Side

You need a 30 year emergency fund no question
Comment from : Joe Arguello

3 AND 6 months 3 months in the bank where you can access the money at any time and 3 additional months someplace where that money will earn interest for you, but you can access it within a 3 month period, such as a 3 month CD or ibonds once you've had them for at least a year
Comment from : M C