35 Burst results for "Emergency Fund"
Retire Early With the FIRE Movement
"The fire movement. What is it and maybe as something you want to give a try. The fire movement fire stands for financial independence. Retire early as i see it. It's a two part moment. Part one is to gain your financial independence. What is financial independence. Financial independence is the ability to make any decision without the worry or concern of the financial costs that may be associated with it such as going out and buying a new car. What type of car do you wanna buy. Be able to pick whatever you want at any price range and either have enough credit to pay and buy it a put fifty percent down and financed arrests and have no worries on where the money's gonna come from to do that. That would be financial independence and my view in order to achieve financial independence. And the build up your emergency fund and built up your investments. You have to reduce your debt if you can get one hundred percent debt free. That would be a great step and to achieving financial independence. Also it would be a great step and to moving towards retire early if that's what you want to do now retire early. Means different things to different. People doesn't mean that you quit working altogether and never have another job. Not necessarily
Ramit Sethi's 10 Money Rules
"I got an email from ra meet sethi with ten money rules and i thought it was interesting enough that i wanted to share it with you my audience. If you don't know where meat sethi is the author of. I will teach you to be rich and i'm pretty sure. I shared a review of his book on this podcast f. So they'll be lincoln the show notes to that episode so let's dive right into it. Rule one always have one year of emergency fund. Cash or meet goes onto explain. He used to say six months but after covid nineteen. He's up to twelve months. And you know. I agree with this idea now. You personally don't necessarily need to have twelve months but if you do want to have twelve months i support you in that one of the purposes of having money at least in my mind is peace of mind and of having twelve months of expenses. Saved up in cash gives you that gives you peace of mind. I say it's money while used some people might say it's too much money that you should have less of an emergency fund an icee in the way that benefits you the most his next role role to is save ten percent invest twenty percent of gross annual income. I think this also is a pretty good roll. My heart isn't set on the percentages in particular f. You know me. I save and invest everything i can. I don't even know the number offhand. I should try to calculate it. I suppose but in a chapter of my life where. I am living pretty much as frugally as i can where i am investing as much as i can and saving as much as i can. I think for most people this ten percent saving and twenty percent investing is a good number. So i say you can go higher. But you probably shouldn't go. Lower now also uses this point to say that he can spend money on small things and not worry about it like spending money. On appetizers next is rule three be able to pay in full for large expenses before spending for important purchases. Save enough. that cost is not the primary factor in my decision and that is also one hundred percent. True you don't want to finance your wedding on debt. I guess the only exception for that is a house. He says a house. But if you live in california like me buying a house in cash is simply not possible unless you are so well to do. But in general. I agree with this principle as well. I say never get into consumer debt. Always pay off your credit card. Don't borrow for things that aren't a house is role for never questioned spending money on books appetizers health or donating to a friend's charity fundraiser. Into this i say question spending money on whatever you want. As far as books are concerned go to the library and check out a book for free. If fact that's how. I read remains book. I went to the library. Checked it out and read it for free and so books are invaluable sources of knowledge. But you actually don't necessarily need to buy them you can borrow them and you get all the knowledge. So if you are spending tons of money at barnes noble buying paper books maybe you should question that. And as far as appetizers go just eating an entree without an appetizer might be effective dieting for you so again you could with good reason questioned spending money on an appetizer. Now as a treat. Definitely treat yourself so. That's okay when you spend money on your health. You have to be aware of what you're spending your money on. There is a whole industry of health supplements that do little to nothing for you and so also you should question what you spend on health. Because some things don't do anything and they cost a lot of buddy and as for the last point he was making your friends charity fundraiser. While maybe my new nickname is going to have to be mister scrooge. Instead of mr frugh. But you're under no obligation to donate to your friends. Charity fundraiser f. You don't want to if you do go for it but if you don't you have no obligation. His next rule rule five is business class on flights over four hours and to this rule. I say that's nonsense. You can fly coach like everybody else. Actually i ve very rarely been on a four hour flight. So maybe i'm not the best one to a pine on this but personally i'm definitely not an a place to fly business class everywhere. Roll number six by the best. Keep it as long as possible and this rule is potentially pretty good if you buy good and they last longtime you're probably going to be better off than you bought very cheap stuff and let it wear out real quick especially with tools and equipment. I think a good pair of boots will last you a long time. A cheap pair of boots will not last you a long time and you'll be miserable every step of the way rule. Seven no limit on spending for health or education and also to this. I say oh yes. There should be a limit true. Investing in your health can be a good idea. He specifically mentions a personal trainer. And if that is helpful to you you may have health benefits that the financial costs. But that's not a free ticket for anything you want. Likewise when he says education he specifically mentioned courses events etc. but also. I think that is a bad idea. There are no blank checks for example if you wanted to go to an expensive private school and would put you like a million dollars in debt. I say no no way. Don't go a million dollars in debt for anything now. Maybe a million dollars is kind of an exaggeration but at the same time he said no limit. So what's stopping me. Rule eight earn enough to work. Only with people i respect and like i think this is a great goal. I'm not sure about how good it is. As a rule in fact it may be kind of difficult to live by that rule number nine mary. The right person which also is a great rule. Shout out to mrs frugh okay. Roll number ten prioritize time outside the spreadsheet a rich life is lived outside the spreadsheet running in another monte. Carlo analysis won't change things at a certain point. You won the game. Now get out of your chair and turn the page to the next chapter. And i guess i should specify these are ra meets rules for himself and he says your rules may be different. In fact i'd go on to say your rules should be different. You can set your own financial rules for
Biden to Address Chip Shortages With Executive Action
"Chuck Schumer is asking fellow lawmakers to draw up legislation to improve competitiveness with China in manufacturing and technology. Humor is calling for emergency funding for incentives to promote semiconductor manufacturing and research. Now this issue, as you know, has taken on new urgency given the global chip shortage. Schumer's plan also list possible sanctions or other steps to curb China on trade and intellectual property theft. He is hoping to have this legislation on the floor of the Senate for a vote this spring. MAINE time President Biden is expected to sign an executive order tomorrow it will call for a supply chain review for critical goods. And Juliet. This would obviously includes semiconductors. Meanwhile,
Lawmakers split on who should receive $1,400 checks
"Congressional Republicans and Democrats remain divided the day over the criteria for the next round of coronavirus stimulus payments. The White House says tweaks and adjustments are expected this lawmakers crunch the numbers of President Biden's coronavirus relief proposal. Press Secretary Jen Psaki says the president supports a new proposal for Democrats providing as much as $3600 per child to help working families ensure they could make it ends meet. This proposal is emergency funding. As I understand it. Conservatives are concerned about deficits and whether the money would be temporary sake, says lawmakers. We're still negotiating income limits on stimulus checks such
Robinhood, in Need of Cash, Raises $1 Billion From Its Investors
"Hood still needed more cash quickly to ensure that it didn't have to place further limits on customer trading we to people briefed on the situation. Who insisted on remaining anonymous because the negotiations were confidential robin hood which is privately held contacted several of its investors including the venture capital firms sequoia capital and ribbit capital. Who came together on thursday night to offer the emergency funding. Five people involved in the negotiations said and
D.C. says it needs $45 million from Congress to host inauguration after protests drained funds
"Biden's inauguration. DC leaders are concerned about the cost and the federal government's failure to repay the cost of President Trump's inauguration from four years ago. Washington Post says Congress has yet to compensate the city for the $7 million it drew from its emergency fund for President Trump's inauguration. City leaders say they're currently operating without emergency reserves. That's because over the summer D. C. Police spent about $40 million on overtime in order to staff demonstrations outside the White House in the wake of the killing of George Floyd. President Trump is considering AH push
"emergency fund" Discussed on 710 WOR
"What makes you wealthy is getting out of that. So that you have control of your most powerful wealth building tool. $1000 Emergency fund is not enough. Not intended to be enough. We're supposed to be kind of scared with $1000 Emergency fund, which drives us really hard to get through the 31,000 and in your case, making 230,000 plus How fast you paid off 31,008 or nine months. So you're really not going to have a 1000 emergency fund for very long. So matter of fact, you don't have $31,000 in debt because you have 8000 savings. I'm gonna take seven of it. And that puts you to 24 how fast you pay off 24 without putting money into the TSP. And without this, Here's the problem. People don't win it money because they don't focus on one thing. They try to do six things at once, and none of them work. That's what you're doing so you can do it if you want. I'm gonna be mad at you. But it's just it's not a shotgun approach on the baby steps because the baby steps does not account for a shotgun approach. Is the baby steps say the power of winning is based on focus for short periods of time You're doing what we call in the business world and we're doing a technology project. Our guys do sprints. And they go. We're gonna dive 17 people on one project like crazy for a week and see if we can get this project done and that's what we're doing here. So you dive on the ball and you got $1000. For how long it would take to pay off 24,000 bucks making your kind of money. Six months, Max. And then your debt free. Now you build your emergency fund from 1000 back up to 3 to 6 months of expenses, and then you restart your tsp and you have plenty of money in your TSP. You can do it your way if you want to do it. Get all of this. I mean, honestly, it's a It's a year where you're gonna look up. 2021. December you're gonna be out of debt. You're gonna have an emergency fund with cash, and then you just start investing again. So it's a one year pauses the way you look at it, and I think that's what that's the that's. The thing you have to write from out of your mind around is As literal as you can get. Write it down. I mean, visually see the plan on paper that gives a little bit more peace. Like the idea of just having $1000. I know you have a guy, you know, 31,000 dead over here, and I do wanna get that five. It all kind of gets muddled. But when you say Okay, what if I took this approach and I really did take it down to 1000 throw 7000 at the debt, listing it out, saying how much you guys are making, looking at your budget, See what you can squeeze out? Okay? Yeah. By July will be out of that completely. We'll take the next six remaining six months of 2021 save up some cash on the side and we can keep going. I mean, it just is walking down step by step. Light. Dispersed lights. A room focused is called a laser and we'll cut metal to do surgery. And life is that way. When you focus on something To the exclusion of everything else. You move the needle on it. When you don't it's watered down because there's so much in this process that is not just a math problem. It's an emotional relational problem, because here's what happens if I'm a little bit scared because only got $2000, which he is and you should be. Um, I Woz, uh and and I'm a little bit pissed off because I'm not getting my match and I like the power of compound interest over here, my TSP, and that's a good thing. And those things make me go when I sit down. Look at the budget. We're cutting this out. We're cutting that out. We're cutting this out because I'm gonna read this debt so I could get on with this thing. And then when you get rid of all that, that there's a sense of freedom There's a spiritually release because the borrower is slave to the lender. And, of course, there's a mathematical release because you don't have a freaking payments anymore, And now you can easily do. Not 5% 50%. Into your retirement for the rest of your life. The power focus supersedes The need for an emergency fund short term. It supersedes the it causes deeper sacrifice into the budget and speeds up to get out of that. It also the the disturbance in the force that happens because you're missing out on that compound. Interest is pushing every all these things are piling up into your spirit. And you just go. It becomes a singular focus. I'm selling everything. I'm working extra. I'm no, we're not going on vacation. No, we're not going out to eat. I'm freaking getting out of dad. And when you get that, in your spirit instead of like we like is telling me this time of the evening when the system of this And I'm not making fun of you, Robert. I'm just saying that that's when your spirit does that you lose the power the mo mentum that comes from focus. And that's what it is personal finance 80% behavior. 20% had knowledge son about the math, so it's going on inside your spirit. And when you're focused, this is why Rams.
Calibrate your emergency fund to a crisis-prone world
"The corona virus pandemic has Americans changing the way they save money are you saving more money than you used to for years American set aside seven to eight percent of their income but when culverted nineteen hit people started stashing away cash at a historic level in April the personal savings rate exploded to more than thirty three percent we're not saving quite as much now but Americans are still saving about double the thirty year average how much should you be saving these days certified financial planner Eliot Peper in Baltimore says the need for an emergency fund is even more important now he suggests boosting the bottom line recommendation of three months of savings to six if you have six months increase it to nine I'm ready to fall lay
How to profit from a distorted real estate market?
"This is kelly. From and i've been listening to the show for a while. Now thanks for the helpful advice when the pandemic started real estate sales in my areas slowed way down but for month or two then. They started back up again. Fuelled by lower supply as more sellers kept their homes off the market now. The overall market is way up with housing prices at least five to ten percent higher this year compared to the last however it's a very lopsided distorted market. No one wants to buy condos or small spaces. Everyone wants big spaces further out of the city and anything with a backyard. Is there a way to profit from these changes. Hey kelly thanks so much for calling in could you hear from you. I've actually heard much the same thing about the real estate market. Of course real estate markets very quite a lot by location the market in brooklyn is going to be completely different from the birmingham alabama market. And it's not just extreme comparisons like that from city to city state to state province to province etc lots of variations but generally speaking in areas. I'm familiar with. I've heard quite a bit the same as kelly. How at the beginning of the pandemic everything slug way down. But then it picked back up because of the difference in supply and demand and such and for sale prices are actually up a lot of places just not for condos or anything that's a small urban space and that's fueled by a couple of concerns first of all people are looking for backyards and outdoor spaces or anything that's that's larger you know the a small apartment But also it's not just because a safety concern. It's also because everybody is working from home working from home and going to school at home and even as we come out of the pandemic hopefully or at least transition to a new phase. I think more and more people are going to continue to be in those kind of environments. So that's why people are looking for larger spaces now inside us a life. I think it's important not just real estate. Because let's make this broader. You always wanna look at what people are missing or not paying attention to you. Do want to be a real estate investor in the traditional sense and snap up properties future. Rentals maybe this is a good time to acquire some of those condos. If you're thinking five to seven years out or whatever but i would say also like use this time to make sure your house in order like your own house you know no pun intended there You know make sure you have a good credit score. Make sure you have your emergency fund three to six months worth of expenses. Pay off any debt that you can or can't pay it off. Try to consolidate it to low interest at so you're at least not going further and further behind and perhaps most important of all like before you invest in real estate. Consider other options. As i said in the beginning like there's so many other things you can do i think. Having a diversified real estate portfolio people always talk about. I think that's a noble goal. It's not that. I think it's it's bad. It's just like so many other options. As i said i'd also requires you to have significant assets in the first place. So if you're not there yet Defer that goal and work on something else and don't be discouraged because you know first of all those other options and second remember that a lot of those other real estate investors are not necessarily doing that. Well you always hear these success stories about them. But there's a lot of people who get into this and and have have trouble whether it's with reservation or finding renters are just realizing that the whole thing is much more of a hassle so keep all those things in mind and look at what people are missing or not paying attention to
millennials Are hesitant On Investing In The Current Market
"During the pandemic has given many investors confidence and strong returns but millennials people born from about nineteen eighty-one until nineteen ninety. Six have been sitting out the market rally to find out why. Let's bring in our personal finance reporter. Julia carpenter julia. Thanks for being here. Thank you so much for having me. How does millennials presence in the market compared to other age groups so according to the saint louis fed about half of millennials are invested in the stock market. And that's roughly the same as gen-x gen-x again being people born between nineteen sixty five in one thousand nine hundred seventy nine. That generation right before millennials. But the difference is that the value of millennials holdings is almost a third lower than that of genetics so invested about the same amount. But just holding much less. Now what are you hearing from. This generation of investors who are not in the market when stocks began to turn sharply higher back in the spring. So the folks. I talk to they. They were kind of mixed some were saying that they were invested but that they were being careful that their Their financial livelihood wasn't dependent on the market others. Were saying that the market continues to confuse them or that they are managing debt obligations managing student loans. Trying to make ends meet in another way. That didn't leave them with much. Money left over to put into the market but absolutely all of the people. I interviewed mentioned. Two thousand and eight that they were very scared of a market crash that they were scared of a recession and in many cases were still trying to recover from the last recession you spoke with several millennials who've lived through more than one sharp economic downturn one of whom is thirty nine year old david hill. He's married with two children lives just outside of chicago. And he's here with his thoughts on the market. David thank you for joining us. Thank you for having me see now. The market's been on a tear for the past six or seven months. What kept you from getting in. You know the concern is i think things tend to be over undervalued based on the news and so these wild swing day to day so if i was you know a day trader or someone who was looking to make short term gains concerned. You know long-term more long-term buy and hold type investor. So i wanna make sure that. I'm also keeping an eye on like what's happening today so it makes me a little bit nervous but since i'm more long-term viewing i don't get really caught up in big shocks and big swings but my try to at least not have too much money invested only in seoul stocks. So when you're managing your finances what's important to you. Don't take anything for granted. Be smart about where you put your money. You know they say cash is king but also caches and make money either so you got to kind of balanced your whole portfolio out between real estate your investments in retirement. How much cash. You have look at everything but just be smart about money. I try to be smart about where i'm spending on. We bought our house purposely. Spent way less our house when we could have like. We approve for a lot more than we actually paid for house. Because we just wanna say we want a place to live. They meet our needs and not have to worry about. Something happens to one of our jobs. We came to mortgage payment now so we really we really are smart about how we look at those those big purchases and you know because we know any bang an accident. A loss of a family member could bankrupt as quick. Now david. What would it take for you to feel more comfortable about putting more money in the market. Make sure i meet some of the other needs. I make sure i have enough. Put away for my kid's college tuition one day to go to college. Make sure you know. We have a big. You know something to fall back on in terms of emergency funding And also making sure that we have a nice lewis nest egg of cash. I know i shouldn't be saying that because cash is making money. But i wanna make sure that we had those basics first before putting more into the market you know having more of a term view. You don't don't. I wouldn't unless you have the stomach for and the cash sitting around and be able to take those heads do not try to be a term day-to-day investor you cannot predict the market and any individual investors can have a hard time beating out the institutional investors getting the better price so i would make sure you just have a more of a term view and be smart about where you re putting your money all right. That's chicago area. Resident david hill. So julie putting money in the market as a gamble. Is that playing a role. Here are millennials looking for tighter security when it comes to their financial obligations. A lot of the people i talked to mentioned that debt felt more pressing that's saving felt more pressing. They were prioritizing. Those financial obligations over these other things and a lot of them did have retirement plans. They were invest in their retirement plans. But they were saying that for the time being they want to be debt free and they wanna have an emergency fund because this last year really emphasized to them the importance of having emergency savings or if it's wall street journal personal finance reporter. Julia carpenter julia. Thanks for coming on the show. Thanks so much for having me in that your money
Warning of famine, UN releases $100M to seven countries
"The United Nations humanitarian office is releasing one hundred million dollars in emergency funding to seven countries at risk of famine in Africa and the Middle East amid conflict and precious exhilarated by the cope with nineteen pandemic a U. N. statement overnight since eighty million dollars all the money will go to Afghanistan Burkina Faso Congo Nigeria south Sudan and Yemen well another twenty million has been set aside for anticipated action to fight hunger in Ethiopia where deadly fighting has erupted this month it's rebellious northern Tigray region meanwhile the office chief mark Lowcock says returning to a world without means all common would be obscene I'm Charles de Ledesma
Acoma Hospital Cuts, Navajo Marijuana Crackdown, and Tribal Transportation Improvements
"This is national native news. I'm antonio gonzalez. The governor of the pueblo of aca in new mexico is concerned about the health and wellbeing of the people of alabama as a reduction of health services takes place amid the pandemic governor. Brian is reaching out to us. Lawmakers for legislative relief in funding after a hospital on academic lands no longer full-service able to offer emergency services or critical care congress and urgent and decisive. Requests were received uninterrupted Healthcare an emergency medical service food services at the canyon. Cto laguna service. Unit have moved to primary and urgent care due to inadequate staffing as a number of staff have decided to leave after being notified of a redesign of indian health. Service care for the area. The hospital located off interstate. Forty west of albuquerque has provided services since the nineteen seventy s to the public of aca and laguna and navajo community in july the tribes were notified of potential changes due to an agreement with the pueblo of laguna a majority shareholder in the hospital. At forty seven percent the navajo community moved its allocation for its own facility in two thousand sixteen in september laguna health corporation entered into an agreement with ihs to open a new facility. In february removing it shares from the facility the agreement started the process of the redesign including notifying employees and establishing a working group via says aca did not expect changes in service until early next year and is calling on the indian health service for immediate resolution option it could allocate funding from the one point three billion dollars from of that and we are five hundred million dollars specifically designated provider relief fund all of these funds intended to address the pandemic. And all that meant to deal with just the situation. We are faced with the indian health service director. Michael we ocoee says they're consulting with all three tribes involved we ocoee says. Ihs supports tribal self determination and self governance to assume health services for their own communities. And he says the ihs has committed to the retain services at aecom a- mitigating To the extent possible any negative consequences as a result and making. There's just a smooth transition. As possible is the goal and we are looking at every available resource whether that's coronavirus funding Any other emergency funds. That may be available to after your. We're looking at all resources available to the agency can make. There's just a smooth transition possible. Make sure that nobody else for the galileo estimates the funding needs the aca. Hospital is around five to six million dollars. He says alabama has received support from state leaders lawmakers and some members of congress a multi-agency operation took place on navajo lands last week in an effort to put an end to marijuana operations. In the shiprock new mexico area federal state local and tribal officers led the raid on twenty one farms and two residences where marijuana was housed in more than one thousand grow houses about two hundred and sixty thousand plants were radically agents also found nineteen trash bags filled with processed marijuana in baggies about one thousand pounds the navajo nation is on board to crack down on what it says is illegal hemp and marijuana operations in the area more than seven million. Federal transit dollars have been awarded to twenty-five tribal governments for improvement projects on tribal lands. The us department of transportation announced tuesday the projects range from storage to maintenance facilities to helping tribes of an appointment to improve transportation services. The funding supports projects operating costs planning activities. I'm antonio gonzalez.
"emergency fund" Discussed on The Dave Ramsey Show
"Hi Dylan how are you? Gentlemen thank you so much for taking my call. I appreciate it surmount what's up in your world. So. I am curly trying to pay off a truck removed for about. Back in February Stupid decision we financed that we still owe about eighteen thousand on it. my decision I'm thinking we should sell the truck and get you know we'll beater to drive around him my wife. Musset keep the truck and keep trying to pay it off but she's not really on board with the baby steps to pay it off. She just wants to kind of pay it off as we can I, keep trying to save money to throw out at. She's not really okay with just throwing money at it she wants it to pay off. You know in the time that we wanted, which was a few years and I disagree I don't know how to get her on board with me 'cause it's. kind of killing me. How old are you? Gosh. I'm twenty six. She's twenty seven How long you been married? we got married last year in November. Oh okay. All right. Cool. So Dylan who's the spender in this family? It was me. and then it stopped being me and she started spending a little more than I was, and now it's kind of. The roles swish a little bit. So she was the spender and the Save Island suspender, and then we kind of. Gotcha here's the thing that I'm missing here. New describe stuff I. I want you to talk to your wife about why why are you wanting to pay off the truck like what's the thing that's motivating you and it really is more a matter of you sharing from the heart like right now you're trying to get tactical and she doesn't understand the heart behind it all, and so are you motivated to be able to prepare your foundation or you want to get prepared to have a baby and grow your family lately like I think you need to talk more heart to heart and less tactical right now and I think you know her? Well I know her reasoning for want him to keep it is because we do plan on starting a family soon and she says if Rebel vehicle and I understand. that. But I also think until their families Kinda started. that would be you know. I. Know I did that stupid two years ago it turns out babies or. Small. And I was the dummy that thought we needed an SUV that fit eight people and it was only three of us at the time. So you again the reliable vehicle yes payment. No and I think connecting with her and talking from the heart and helping her plug in and understanding this process of the baby steps. It's the roadmap baby. It's the plan that lead you to be able to do more than you ever thought you could for yourself and your family, and so it sounds like you guys need to get aligned and get over into Ramsey plus. Yeah. Let's let's get you guys signed up for that I'll. I'll give you a year in it and just start watching some of the financial peace university lessons together. Yeah. I think you do need to quit talking about what to do and start talking about why? And just go the reason I'm excited about this idea of being out of debt is I. Think we could build some serious wealth and that would allow us to blank blank blank. Right what allow you to be outrageously generous allows us to make sure we can provide for a family and pay for our kids college and You know we'll be able to travel. We'll be able to do this and certainly will be able to have a reliable safe vehicle for children You may or may not need to sell the truck but I'm not. Really concerned about the truck right now, the because the truck is a is a minor issue compared to you guys being on the same page. It doesn't matter if you do everything right. If you're dragging her along or vice versa it, you know it's just like trying you know trying to drag a boat anchor behind something we don't see any couples become financially. Successful unless they work together I, mean none it just doesn't work, and so getting on the same page is a big deal. Then you can decide whether to sell the truck or not But yeah, it's a big deal behind that. So hang on Kelly L. Pickup we'll get your setup Ramsey Ramsay plush, and that'll be our wedding gift to your newlyweds and you're learning how to handle money together and that's a that's you know sometimes, the first year is the best year sometimes. The first year is a really rough year. It's all a process I mean you're learning how to speak a new language right and instead of speaking me, you're speaking we and you're starting to work together. So going to take a lot of time a lot of patients and a process and as men we tend to think one conversation is enough. This is an ongoing dialogue where sharing your heart and talking about the process. Yeah I told you want twenty years ago you know. Our Rebecca's in Nashville. Hi, Becca. Welcome to the Dave Ramsey show. Hey Dave how are you? Deserve how can you help? Well I was my husband and I we were wondering if you could give him some financial advice we are both debt free. And, we have around fifty thousand states outright now is wondering if you could tell us what would be the best strategy to use that we currently renting, we want to buy a house. potentially start a business. We're not sure what kind of business. And Invest we were wondering what would be the best way to use that. Since you don't have a business idea and you don't have a business plan I. Think the next order of business is for you to buy the home. Let's get in that. Get settled in and make sure we're continuing to save. You've done a great job saving. And So yeah, I think you know you need to hold back on Emergency Fund of three to six months of expenses but. You know you don't WanNa hold money or pour money into something as far as business out of the equation where you don't have a very airtight thought out detailed plan. Because that money I'll just leave. You know you just throwing money up against the wall see if it'll stick that's just a bad idea and so. You know later on when you fully developed Your Business Plan and you thought you know exactly what to do then I think you can scratch the money together while you're living in a home to do that I agree Dave at that Emergency Fund. Again, going back to what we've walked through the culprit pandemic there's never been more validation for an emergency fund than right now if you're out there and you don't have three to six months, tucked away to be able. To be a cushion between you and life I don't know what you've been watching like. You know you've got to see this and understand and have that never again moment I'll never forget you said that during that pandemic never again am I gonNA allow myself to be in this position to make a decision between food on the table and lights on and that was something that really resonated where you gotta go. Yeah. You have to draw that line in the sand. I'm done I'm that's not gonNA happen anymore when you finally say, I've had it. That's right. I've had it. That's when people changed their lives. You Re Rebecca hold. Kelly if you would send her a copy of days, entreleadership if you're thinking about a business I went to Grad School and their village idiots, they're talking about Oh pm other people's money and leveraging you need to know how to do it the right way and entree.
How Do I Balance My Financial Goals and Having a Life?
"John is with us in Atlanta. Georgia the start off this hour. Hey John. Welcome to the Dave Ramsey show. Hey Don Hey Chris how're you doing great man how can we help? so I have a little bit. Trying to figure this out mentally as well as math novelty I'm I'm in my mid thirties I have about two hundred and four thousand in my retirement not as job won't or should have but that's what I have right now. My base salary is one nineteen. What bonus up to one thirty, eight with my last batch of restricted stock units looking at about one fifty next year. God willing, of course. Good. So Is I really want to pay off the House that I'm living in I'm currently going through refinance right now from the thirty. Two a year. Conventional. And, I, WanNa have I wanna be completely free in the next three to four years preferably three. But I'm just trying to find a balance between retirement enjoying some the minded I'm also making but likewise paying off the house within their three to four year goal that I have. What did you say? Oh. Sorry. The house down is one, thirty nine and with the refinance been wrong in the cold and calls it comes up to one forty six. Hundred Forty six thousand. Okay. John, what's motivating you to attack pay off everything in the next three to four years. To be honest this whole situation and also just the general craziness with the economy I mean it's like pockets of positives and negatives I. Would I would sleep better and have peace of mind if I have seen nothing and no no nobody nothing basically. Okay, do you currently owe anyone anything else outside of this? House. So I paid off all Sumer. Death I did seventy five thousand and seventeen months about two two years ago who FPU. Wow. Okay. No other debts right now. Nothing zero style you have children. Children Okay all right, and did you and you said you're married, right I'm thinking. Okay. All right. Well. You don't have to talk anybody into how are you wanNA sacrifice you can just decide that. So. You can decide how much of your life you WanNa give up the only variables are formula are fixed in your situation. Are you've done a great job? You're in baby step four, fifteen percent of your income going into retirement. And then the only two things fighting for the rest of the money is mortgage reduction versus lifestyle. And you can decide that I don't care. English where does YOU WANT TO BE? But John I would rather you tap in on the internal and find that motivation not based on anything that's going on in the world. you're going to be more consistent in your value system in the thing that's driving you as opposed to what's happening out and how crazy the world is going to get. Okay. If we cash how restricted are the restricted stock options they best every few months. Okay you. Roll those into cash then. Okay. So basically, we have one hundred and fifty thousand dollar household income if everything's going like you've planned. And you're putting fifteen percent away into retirement. You have your emergency fund in place. You don't have any other bills and so I'm you what I'm going to sit down and run out three scenarios. I'M GONNA say if my spend. If I, pay off the house three years, that's fifty thousand dollars a year. For three years. Right. Okay. An out of my income that's forty eight forty, three, hundred dollars a month or whatever. It comes out forty two, hundred dollars a month. And Then I'm going to say all right. If I do that I've got that in my budget that leaves me X. for lifestyle. For. Fun. Then run the same thing out if you've paid off the house and four years, five years, maybe even six years. Maybe, maybe do three and five and six or three, five and seven and just look and say, okay, seven I get this much fun three I get this much fun which is less obviously and look at that and go. Okay. Now here's the here's the thing you none of this is a contract. So. Let's say you said Iron I'm going for the three year plan. Almost. No Fun. And you do you do one year of that and you go this sucks. I think I'm going for a little more fun and a new three year plan. That's right. After. You can adjust it if you want, it's your money and your calendar. Oh you're doing a great job buddy. You really are and you need to hear that and day, but you need to believe it. But what my point is this it for all US listening and for John is sometimes when I take these philosophies that are in my mind is like Ooh I got I got I have no life cycle for three years. We actually run the math out hundred and fifty thousand minus fifty thousand for paying off the house in three years minus fifteen percent you're single guy used to some pretty decent money left in their. You probably GonNa be like, okay. That doesn't sound like that big strain but you haven't really put money to it. You've just got it in your head math to it. You got in your head like this is GonNa be hard. That's true and Dave we're not even accounting for the fact that his income could is going to go up probably over the next. Three years. So again, John You find that internal motivation. I loved the three number scenarios of figuring out. Hey, what makes sense for you and the good thing is you can make the decision and remaking and change your mind. If you want to preserve that right because everything you're doing is in the smart column. So if you're not gonNA move outside the SMART, problem.
Boston - Gov. Baker Tries To Restart Massachusetts Budget Debate
"Budget proposal today the plan, we'll use some emergency funding to account for a projected drop in state tax revenue. Austin gets another mobile
"emergency fund" Discussed on You Need a Budget
"Podcast number four, hundred, forty, nine. For one, we'll be teach you four rules to help you stop living paycheck to paycheck, get outta debt and save more money today I want to talk about what it might look like if you use a little bit of a tactic in the software I don't talk about the software per se very often but I wanted to give you a little tip today a lot of times when people are following wine ebbers specific where fallen rule to. Their embracing their true expenses it means that they're looking ahead and they're trying to find those larger less frequent expenses and they're breaking them up into manageable monthly amounts. So Christmas if you're gonNA spend twelve, hundred dollars a year easy math. You would take the twelve hundred dollars you divided by twelve, and then you would give yourself a one hundred dollar monthly bill. You could do the same thing for an HVAC repair. You could do the same thing for your Bosh Dryer not recommended and replace that thing so. You're always looking ahead to those larger amounts and then you're saying, okay, what would I need to save or set aside these are traditionally called sinking funds and put him right into wine APP and it's your category where you build up that money over time. Clear. What a lot of the time traditional advice would be. You have an emergency fund and that also makes good sense. Right? We're living in a bit of an emergency year. So you would say, well, I'm going to have three to six months of expenses saved for an emergency. What happens is you have wine numbers that. Don't have emergencies anymore, and the reason is because they're falling in to they're looking ahead and they're thinking about those expenses will come up their true expenses and they are embracing them with love affection and money because you need that third thing. More than any other so. When you are not having emergencies anymore do you still need an emergency fund? You may call that fun now. Something like. Something that really really caught us off guard that we did not see coming and the next time we'll see coming. That's a little bit along category name, but the idea is something happens and it really does catch you guard and it wasn't part of your rule to true expenses. You don't have a sinking fund setup that's when you could use an emergency fund. What I want you to do in the software is never spent directly from that blanket kind of grove. Emergency, Fund category. Instead I want you to make sure that you're always moving money to where that money actually will be used. So if you didn't foresee HVAC going out. How how I do not know but you don't foresee that. And is not covered under warranty. So you're going to have to get rid of actual cash. You could set up a category called home appliances repair something like that or more specifically HVAC I don't think it should be that specific but home appliances, maintenance and repair. And then you would move the money from your emergency fund that little pile of money used for things that you didn't actually budget for and you move the money to the home appliance repair category, and then you would spend that unfortunate large dollar amount from that category. Why? This is what gives you data for going forward. So you will not be caught on your hills again. So you never spent directly if you have an emergency fund category in Why am because you've just got cash set aside I don't know what will happen. This is truly for emergencies not because my car tires wore out, that's not an emergency that. Happens, but you have an actual emergency that takes emergency money. You would then move it to a category for the actual spending. So then you have the historical data to point back to and say, Oh, next time next time that will not catch us off guard until next I'm following APPS for rules and you will win financially you've never budgeted like this..
"emergency fund" Discussed on You Need a Budget
"Today I want to talk about what it might look like if you use a little bit of a tactic in the software I don't talk about the software per se very often but I wanted to give you a little tip today a lot of times when people are following wine ebbers specific where fallen rule to. . Their embracing their true expenses it means that they're looking ahead and they're trying to find those larger less frequent expenses and they're breaking them up into manageable monthly amounts. . So Christmas if you're gonNA spend twelve, , hundred dollars a year easy math. . You would take the twelve hundred dollars you divided by twelve, , and then you would give yourself a one hundred dollar monthly bill. . You could do the same thing for an HVAC repair. . You could do the same thing for your Bosh Dryer not recommended and replace that thing so. . You're always looking ahead to those larger amounts and then you're saying, , okay, , what would I need to save or set aside these are traditionally called sinking funds and put him right into wine APP and it's your category where you build up that money over time. . Clear. . What a lot of the time traditional advice would be. . You have an emergency fund and that also makes good sense. . Right? ? We're living in a bit of an emergency year. . So you would say, , well, I'm , going to have three to six months of expenses saved for an emergency. . What happens is you have wine numbers that. . Don't have emergencies anymore, , and the reason is because they're falling in to they're looking ahead and they're thinking about those expenses will come up their true expenses and they are embracing them with love affection and money because you need that third thing. . More than any other so. . When you are not having emergencies anymore do you still need an emergency fund? ? You may call that fun now. . Something like. . Something that really really caught us off guard that we did not see coming and the next time we'll see coming. . That's a little bit along category name, , but the idea is something happens and it really does catch you guard and it wasn't part of your rule to true expenses. . You don't have a sinking fund setup that's when you could use an emergency fund. . What I want you to do in the software is never spent directly from that blanket kind of grove. . Emergency, , Fund category. . Instead I want you to make sure that you're always moving money to where that money actually will be used. . So if you didn't foresee HVAC going out. . How how I do not know but you don't foresee that. . And is not covered under warranty. . So you're going to have to get rid of actual cash. . You could set up a category called home appliances repair something like that or more specifically HVAC I don't think it should be that specific but home appliances, , maintenance and repair. . And then you would move the money from your emergency fund that little pile of money used for things that you didn't actually budget for and you move the money to the home appliance repair category, , and then you would spend that unfortunate large dollar amount from that category. . Why? ? This is what gives you data for going forward. . So you will not be caught on your hills again. . So you never spent directly if you have an emergency fund category in Why am because you've just got cash set aside I don't know what will happen. . This is truly for emergencies not because my car tires wore out, , that's not an emergency that. Happens, . , but you have an actual emergency that takes emergency money. . You would then move it to a category for the actual spending. . So then you have the historical data to point back to and say, Oh, , , next time next time that will not catch us off guard
Never Spend Your Emergency Fund Again
"Today I want to talk about what it might look like if you use a little bit of a tactic in the software I don't talk about the software per se very often but I wanted to give you a little tip today a lot of times when people are following wine ebbers specific where fallen rule to. Their embracing their true expenses it means that they're looking ahead and they're trying to find those larger less frequent expenses and they're breaking them up into manageable monthly amounts. So Christmas if you're gonNA spend twelve, hundred dollars a year easy math. You would take the twelve hundred dollars you divided by twelve, and then you would give yourself a one hundred dollar monthly bill. You could do the same thing for an HVAC repair. You could do the same thing for your Bosh Dryer not recommended and replace that thing so. You're always looking ahead to those larger amounts and then you're saying, okay, what would I need to save or set aside these are traditionally called sinking funds and put him right into wine APP and it's your category where you build up that money over time. Clear. What a lot of the time traditional advice would be. You have an emergency fund and that also makes good sense. Right? We're living in a bit of an emergency year. So you would say, well, I'm going to have three to six months of expenses saved for an emergency. What happens is you have wine numbers that. Don't have emergencies anymore, and the reason is because they're falling in to they're looking ahead and they're thinking about those expenses will come up their true expenses and they are embracing them with love affection and money because you need that third thing. More than any other so. When you are not having emergencies anymore do you still need an emergency fund? You may call that fun now. Something like. Something that really really caught us off guard that we did not see coming and the next time we'll see coming. That's a little bit along category name, but the idea is something happens and it really does catch you guard and it wasn't part of your rule to true expenses. You don't have a sinking fund setup that's when you could use an emergency fund. What I want you to do in the software is never spent directly from that blanket kind of grove. Emergency, Fund category. Instead I want you to make sure that you're always moving money to where that money actually will be used. So if you didn't foresee HVAC going out. How how I do not know but you don't foresee that. And is not covered under warranty. So you're going to have to get rid of actual cash. You could set up a category called home appliances repair something like that or more specifically HVAC I don't think it should be that specific but home appliances, maintenance and repair. And then you would move the money from your emergency fund that little pile of money used for things that you didn't actually budget for and you move the money to the home appliance repair category, and then you would spend that unfortunate large dollar amount from that category. Why? This is what gives you data for going forward. So you will not be caught on your hills again. So you never spent directly if you have an emergency fund category in Why am because you've just got cash set aside I don't know what will happen. This is truly for emergencies not because my car tires wore out, that's not an emergency that. Happens, but you have an actual emergency that takes emergency money. You would then move it to a category for the actual spending. So then you have the historical data to point back to and say, Oh, next time next time that will not catch us off guard
Ready to Secure Your Financial Future?
"This article from Rosemary as I said, a VIP Audubon New York the tide love it is most Americans didn't tamper with their retirement savings even in the pandemic according to a study. Now, this is from Yahoo money. And this is encouraging. I think now this is coming from I see I. This is an Investment Company Institute and they are they represent regulated funds like mutual funds and ETF's electronic transfer funds, things of that nature but according to ICI only two percent, a 401k or other defined contribution plan participants stop contributing to their retirement in the first half of twenty twenty. Now as we all know it was around February marks arch really when the pandemic began to hit and things begin to shut down and shelter in place orders and things were placed around the country in different areas But here's the thing only two percent at that time. If we glanced back to the great recession, which happened in oh seven through nine, the there were four point nine, almost five percent of participants stop contributing to their retirement. Now the reality is this anybody that is saving for retirement is a long term thinker and planner, which means we know that regardless of what's going on in the world, the stock market is like that rollercoaster. You remember me talking about this retire inspired and I've talked about it. A lot of times on the show things are going to go up they're going to go down they're gonNA get Topsy Turvy. The bottom line is as because I invest long term I, don't really get too. Caught up in the short term situation, I keep my view on the thing out in front, and so it's important that that we have this mindset. Now, there were people that were impacted by the pandemic laid off furloughed or hours cut back In that case, a Lotta people did have to pause right because that's what you had to do. You had to go into conserve mode that's where you're onto things and looking at things a little bit different but look at this. Only. Fifteen of four one K. activity obviously was down in the second quarter but only fifteen point, six percent of the participants reported an outstanding loan that meant there were lower and fewer 401k loans which obviously make me happy. These loans are dangerous because if you lose or leave the job and have a one loan, that loan can be due and payable within sixty to ninety days. Well, let's think about this. You lose leave a job. What are you not have money? So the last thing you need is a loan coming due in the midst of trying to find another job. So 401k loans just complicates situations it makes life more stressful. Don't do it you know so the bottom line is this. I I liked this the the study. This these are promising numbers, Rosemary but the reality is as this we've got to make sure that we keep our guard up. We stay very focused and intentional, and if again you've gotta go into conservative mode, it's okay to pause but I wanna hit on something else if you end up having an emergency in the midst of this and you use your emergency fund. I want, did you hear me? You have to pause investing? You have to Paul Saving for college you've got to go back to baby step number three and begin to build up that fully-funded emergency fund. Now hold on because some of you are going. Okay. You went from basic math that like geometry Hogan, what do you? What do you? What are you talking about the Stub? The baby steps the foundational thing. Of all that we teach, which means baby step one, two, thousand dollars, you WanNa, get that thousand dollars in place. So you stop using debt. So if life were to happen a car repair home repair or whatever you, you've got money, you can reach for instead of credit card. Once you get that in place now you're going to attack debt with baby step number two, you're gonNA attack the debt smallest to. largest that's called the debt snowball approach and we're not worried about math. We're GONNA, WE'RE GONNA make payment minimum payments on all the other debts but I'm gonNA throw all extra money up the smallest and once I pay that off move down to the next debt. So smallest to biggest once you have that done now you're going to do what's called the fully-funded emergency fund of three to six months of expenses. Same intensity as you had attack in debt, but you're going to build up this emergency fund. Okay. Once you do that now you're going to begin to do multiple things at the
How to Save Money - burst 03
"This episode is how to say, money. I've been doing some research and I've found that. Some of you out there one in four Americans have no emergency savings and you don't not going to be able to get by without a cash cushion. which is really surprising. One in four Americans have no emergency savings and you don't have a savings account and hair some of the most common excuses people use. I don't know where to say I don't know how to say. I, can't say I don't have enough money to say. Prices have gone up and now I can't save. If you're using one of the -scuse Est. shame on you in distant excuse. I always found it. To be gratifying. When I paid myself. I as what I referred to it. Even, if I could only put five dollars a pay or ten dollars pay and to a saves account, and that's where you say to get started. Savings Account. As what you fine at your bank. So if you have a checking account and you don't have a savings account, you need to go to your bank set up a savings account. I bleed nowadays, it may be lower but one I set up my savings account some years ago. You had to have at least fifty dollars to get it started. They may work with you. If you've been if you've had your checking account with them for a long time, they may late let you get started for less money than fifty dollars. But if he can't scrap cy script up and put aside fifty dollars to get a savings account started, you're really in bad shape. Remember. I way to reduce debt is to pay the minimum balance on your credit cards. If you start paying the minimum balance on your credit cards, instead of an extra fifty or one, hundred, ten or twenty or whatever the extra you've been paying that should free up some money for you to get a savings account set up. and. Get one started if you don't have one or at least get your emergency fund start. So it's all interrelated personal finance as the inner related if you don't do one part of it. The rest of it's not gonNA work. It's GonNa fall apart and you're GONNA be in trouble one of the biggest keys to financial success as three accounts. I check, account the US to pay all your bills. And you WANNA keep track of the bills you're paying. So that's why you have a checking account because it keeps track of that for Ya. Savings Account. Money were you set aside? To have an emergency fund.
"emergency fund" Discussed on Optimal Finance Daily
"This is optimal financed daily episode twelve, seventy, nine, everything. You need to know about emergency funds by Michelle Schroeder. Gardner of making sense of sense dot com and I'm Dan I'm your host, and this is where I read to you from some of the best blogs on personal finance every single day including weekends and holidays, and we have a bunch of shows covering different topics. If you'd like this format, you can search for optimal living daily wherever you're hearing this to find all of them. But for now, let's get right to it as we continue optimizing your life. Everything you need to know about emergency funds by Michelle Schroeder Gardner of making sense of sense dot com. An emergency fund is something I. Believe Everyone should have however according to a report by bankrate dot com twenty, six percent of Americans have no emergency fund whatsoever for when they need money fast according to this same report only forty percent of families have enough in savings to cover three months of expenses with an even lower percentage having the usually recommended six months worth of savings. This is frightening to me as having an emergency fund can greatly help a person get through tough parts in life for us. We have a twelve month emergency fund I've always been open about this. I am a rather big warrior about things and having a large emergency fund gives me peace of mind especially since we're self employed and our income can vary from month to month. Even if you aren't self employed, there are many other reasons to have a fully funded. Emergency Fund. One. An emergency fund can help you if you your job no matter how stable you think your job is there's always a chance that something could happen where you may need money fast what would you do if you lost your job and didn't have emergency fund? To An emergency fund is wise if you do not have great health insurance. This is another reason why we have a well-funded emergency fund. We do not have the greatest health insurance with our deductible being over twelve thousand dollars annually having an emergency fund can help protect us if something were to happen to either of us I also had a guest post by a blogging friend about this very topic reason to have an emergency fund medical emergencies. Three. An emergency fund is a good idea. If you have a car, he just never know if it may need a repair. For an emergency fund is a need if you own a home, one of the lucky things that homeowners often have to deal with is an unexpected home repair having an emergency fund can help you if your basement floods if a hole in your roof forms and more. And Five, an emergency fund can protect you in many other areas as well. This can include if you have a medical costs for your pet if you have to take time off work for something, he needed to go somewhere far to visit someone who's sick and so on. The list of reasons for why you might need an emergency fund can be a long one. Emergency funds are always good to half because they can give you peace of mind if anything were to happen in. Your. Life. Instead of building onto your stress because of whatever has happened at least you know you can afford to pay your bills and worry about more important things. An emergency fund is also wise to have because it can help prevent unnecessary debt. There are too many people out there who count on their credit cards as their emergency fund, and that's not a good idea. It can lead to debt spiraling out of control because of high interest rates. Here's what you need to know about emergency funds for when you need money fast. Should you have an emergency fund if you're in debt. Yes I still think you should have an emergency fund even if you have debt if you have debt than the usual recommended amount is to have a thousand dollars in your emergency fund before you start paying down your debt after that amount eh needs to determine what you're comfortable with. How much should be in an emergency fund? The next question I often here is how much should be in an emergency fund how much money you decide to keep in your emergency fund is dependent on your specific situation. If you don't have debt, then I usually recommend at least six months of expenses for us. I like to have a full year of expenses saved. Since we're self-employed, we own a house although that will be changing. Soon, we have a high deductible health insurance plan, and for a few other reasons, there are many reasons for why a person might need money fast and you need to analyze your specific situation..
Buying A house - burst 03
"Do you have an emergency fund set up. and. How much of a down payment do you already have? Those are factors you need to take into consideration. Once she get that under control. And if you're scared that, you may not be able to afford a home and what you can afford. And here's a tap. If you're not sure he can afford a home try sticking to a budget with what you expect. Your home payment will be and put the extra money in savings. This can build your confidence and your savings. So he can move forward with the home purchase. So if you're paying rat in Iran is five, hundred dollars a month estimate and the area which you WanNa buy a home. That your mortgage payment over thirty years say is GONNA. Be a thousand dollars a month. You pay your rent five hundred put another five hundred dollars into savings. And you don't touch it and you do that. For at least three to six months to determine. Can you really afford to home in the area which you what once you get that figured out you're you're good to go I'm. References tuna article, IN THE BALANCE DOT COM How the buy your first home. Got Good Information in here and if you'RE GONNA move up it's the same information next step once you figure out if you can afford or not is the get out of debt and build an emergency fund before you're buying which he should already be working on that
FEMA Yanks Funding For Disinfecting New York Subways
"New York's Metropolitan Transportation Authority chairman Patrick Boys, slamming FEMA for pulling $12 billion in emergency funding to the agency Paul the Castro reports, Senator Chuck Schumer said Thursday that FEMA is changing the rules for funding that will result in the Mt. Losing critical dollars used to sanitize subways and buses. In a statement, boys said the decision coupled with the government's inexplicable failure to provide $12 billion and desperately needed funding Makes it clear in his eyes that Washington is telling mth customers to drop dead. New York City had already received 1.3 billion an emergency funding
"emergency fund" Discussed on Ramsey Call of the Day
"It's Friday, and this is the Ramsey call of the day part of the Ramsey network. My Co host Dr John Baloney Ramsey personality this hour. And Angela is in Ohio Hi Angela your question for Dr John and me. Hi thank you so much for taking my call. I am a huge fan of everything Dave Ramsey. I'm super nervous took. Clear. Okay. Good So I'm calling because about three and a half weeks ago my husband confessed to me that he has a prescription drug addiction I had no idea. I was completely blindsided so that very day we found a rehab facility. He's been there since he's coming home next week But in the meantime I found out, he had sent, we had an emergency fund saved a thirty thousand dollars. He cleaned it out. He took as much liquid as he could get and he put himself into credit of about seventy thousand dollars and I'm aware of just the cash advances. At, this point I'm just trying to figure out and he's going to clean up zone own of course, but I'm trying to be supportive Do we go with chapter thirteen bankruptcy? Do we consolidate? Do we pay things off Some of its in collections about ten credit cards I found some of it's just four to six months late. So. It's kind of a mess right now. So I'm just looking for some guidance. Wow. Tough Month You're going to be like the rest of US twenty twenty. You don't WanNa. See it again. So are you working outside the home? I am education. What are you make? seventy, one thousand. What does he make? He makes ninety five. One hundred sixty thousand dollar income to clean up seventy thousand dollars of debt. Correct. So that's really not a problem. Correct. It's doesn't sound like one I guess because it's going to collections and it's passed. Do you have any liquid? There's nothing the Curtis collector. About. That they're. Going to do anything by the time, you can pay them back. so I mean if you start paying. You know Start, talking about putting this has gone in twelve months, which should be fairly easily. The biggest problem is you're just trying to your you. You got knocked on your back. I, mean So your whole world changed. And so you're trying to get your head around. If you had been gradually Kinda knew this was there and but you didn't know we had a problem and you didn't know you had a financial problem and those are all new things. Right I thought, we had a fully funded emergency fund I thought we were baby step six and I had no idea and I, and I am in charge of the money you know and I he just. But you know the addiction makes you sneaky. Makes you lie and deceit deceitful? Exactly. All addicts are liars. D If somebody in your life that you can sit with, that will walk alongside your group going to walk alongside you because you're going to have to do a couple of things up to mourn the I learned this phrase when I joined this team, you're GONNA have to mourn the financial infidelity. You'RE GONNA have to mourn the. Stability that you knew. In, the law got loss of trust there. Right as your husband has to rebuild that and you're going to have to walk alongside your husband and this this journey together. But you're also going to have to learn to re- trust you. Because you trusted him, you trusted your sense of of understanding what's going on in your home. You know this sense of money and what I often feel here people experiences as they walk through this is they understand they gotta learn to trust their husband the Gattari learned to read Clinton the the financial mess gutter. They forget to learn to re- trust themselves, and that's ends up being the most painful violation. should you have people that you can walk with? I have a lot. Yeah. I have an amazing group of friends and extraordinaire and family. I mean I am so blessed to have everybody in my life. They have come forward and helped me in ways I could never have imagined. So yes, I have a lot of helpers and. Thank God for that. So you had a hundred thousand dollar change in position from thirty plus seventy monash. and. Your your guy that you thought was solid isn't. Right. and. So there's a lot to be sad about. Very, much an audience and mad about and not to be say sad or stay mad but but I mean those are just real emotions. I just WanNa say out loud are normal human beings have emotions like that in this kind of crap and if you don't feel and if you shove them down and try to get the problem solving, what's what's that Dave? You? They have a high rate of resurrection or in counseling we call them, they will find a way out. Or they will make their way out all over your marriage. Your as strong as they come and ups and downs and its overall, I would say it's just confusing I'm just confused. disoriented. What you can do is you can lay out some very clear principles with his coaches and counselors that say you know you have to re earn trust by being worthy of trust trustworthy not not falling off the wagon again, not lying not manipulating not doing drugs, and so we're GonNa have a real clear. Understanding what winning looks like they're, and then we're going to have a real careful mathematical formula that says we're going to be on a budget and we're gonNA take seventy thousand dollars in debt making a hundred and sixty thousand dollars, and so we're going to clean that up. You know this is a seven thousand dollars a month. And when you just make your list of smallest to largest. Plus or minus a barking dog that you want to get rid of you know on the list right but you know you just start knocking it out seven thousand dollars the they're not gonNA bark much. Right yeah, and you don't think bankruptcy is the way to go. Bankrupt. You're not bankrupt. You make one, hundred, sixteen to seventy. Four and you see the little perspective from you. So thank you. It's not even close to bankruptcy. Now you're scared you're mad you're confused and you're and you're pissed off and all of those things are right but you're not bankrupt. In six months from now, you're going to be super pissed off. Because you're going to have want this to be over and he's GonNa. have been working his steps and he's going to be going to his guru and he is going to have rededicated has himself to his marriage new and you are still going to have the broom and the dust playing cleaning this crap. And it's Wrong it's GonNa suck and that's why you've got. That's what we say the. Life if he stays clean and does his steps for the next year and you work, you know your Dave Ramsey system and you bust through this debt and one year twelve months from today. You're you're GonNa have.
"emergency fund" Discussed on The Dave Ramsey Show
"Ramsey show. Pick with you to. How can I help? Okay, so I currently on baby step three, and I'm close to finishing it I. Think I need about one more month and I'll be done with step three good for you. So then my question that has to with baby step four so the so I work for the university and and part of that involves that you know we take. We put in a little bit towards retirement on their pension system, which ends up being an annuity later on in the future, and it's employer match, and I'm who in that. Have a mandatory withdrawals from your check going into pension. That's what percentage of your income. Percent Okay I. Always Count that about half. Towards your fifteen percent, because a it is your money, you're putting it in, and it's mandatory, but be. You don't have any control over it. Right and so I don't count it. As the full six, I counted about three. You can do whatever you want. If you countered it five of the six, then you'd put in ten. If you counted three of the six, then you'd put in twelve. Okay, BARF okay, so that makes. Then my next question then comes with say the possibility that I ended up moving to another job and I. Leave this job. so now, I. The basically the only two options that I can tell that I have are either think of separation benefited, which is basically the money that I put in. Or do I let it stay with the pension system with the employer match and. Then start taking it once. I'm on. You know a retirement age so. If you leave the university. They don't give you any of the money that they put in. That's right. You're not vested at all at any point. So the way that they define vesting as you need to have two things, you have worked for the retirement system for at least five years which I think I already have and then you have to be a I think it's fifty nine years old so then, but then if I leave say. The five years. Is, the only option that I have then is the separation of what they call the separation benefit, which is just the money you put in with no return on it. That's right. Wow that sucks. I agree I'm wondering what do what do. Dove longer you're there. The more likely I would be to leave it there. The closer to fifty nine that you are the more likely I would leave that portion there as young as you are. Today I would just take my money and roll it to an IRA in the benefit, and you can do that with any taxes on it. Okay, but the yeah, but but because the further you're into it, and the closer you are to fifty nine, the more valuable the portion. That they've put in a they put in more money. Be Closer to the time. You'RE GONNA, get it and it makes it worth letting your money that they're being tied up without any control over it right. Then what would you consider them? The age sort of guideline where 'cause right now I'm currently thirty and What would you go through the age guideline of? Leave it. Probably I'm just sticking a wet finger in the air, but roughly forty five. Okay that makes sense something like that. Let's get on out because that means that fifteen more years. They've been putting money in there. There's a pile of their money with your name on it. Through that and you'd ride that out plush forty five fourteen years from fifty nine. You know we'll let that ride a little bit, but if you leave within the next five years, I'd probably just take it. Wonderful, that makes sense. Thanks so much. Thank you for the call man. We appreciate you joining US Rebecca's with us in Green Bay Wisconsin well come to the Dave Ramsey, show, Rebecca! What's up? How are you? I'm so excited to speak with you. You've changed our lives I. Did you did? Awesome, so we are debt free and I'm just finishing up step. Three are based up three. I did a lot of research on where to put our fifteen thousand I called banks, credit, union and my personal finance advisor. My findings was that my personal finance advisers company offered the best rate at one point five seven, so I opened that account, but ten thousand and plan on finishing up this week. So I happened to ask If this account was s is FDIC insured, he said that the money market is not FDIC insured, but is invested in very short term and safe securities. Want and insured bank deposit. The rain rate is point four percent. Would you stay in the account that I have started or move it to an FDIC insured Akal. Well number one I'm not chasing returns with my emergency fund the the difference in this discussion. What you make on either one is not the issue. The fact that you have the emergency fund and habit accessible. Is your issue okay, so because Your Emergency Fund is insurance? It's not an investment. It doesn't make you any money. I mean point five or one point five who gives a rip both suck. Just not any money. You're not going to get rich on that account. You're going to get rich on the other accounts that you don't have to touch because that accounts there to cover them in case of an emergency. You don't have to jump out of your 401k to fix a car transmission. That's what makes you rich later on not this account so I I don't I don't really. Spend a lot of time I. Mean I'd like to make what you're making you know. Try to get mine up in that. You know one point five to two range, because when I'm sitting on cash, but you know and as far as I don't. WHO's the money market with? What's the company name? Edward Jones. With that that's fine. There's another all that it's a major company. Money Market Account. There's never been one fail. Ever Okay Okay so could they hypothetically yeah, but I mean they would've had really screw up their whole company for their money market to fail and be worth zero, because it's all sitting in liquid investments, so I don't think anything about putting a half million dollars in a money market account. That's not FDIC. It doesn't bother me with a major name brand that I know you know Van Guard and Edward Jones Raymond James. A fidelity. You know you start. You know American funds. These kinds of our big name mutual fund companies their money. Markets are as safe as a stinking FDIC, if five of those money markets crash, the FTSE's probably GonNa fold. Because they has gotten like the worst ever in the history. The United States have five of those big ones went down. So that's how stable they are in how tied into the fabric of our economy they are that thread gets pulled. There's bigger problems there so I wouldn't worry about the FDIC part. If you like the return, and you trust your guy and you understand what you're getting into I. Mean that's that's a major brokerage house, and it's not one I do business with, but they but they there would be nothing to fear with their. Their particular money market accounts safety I wouldn't I wouldn't hesitate to put my fifteen grant in there. as far as safety goes, but again back to that original part. We don't chase returns. With the Emergency Fund the Emergency Fund, it just sits there in a cigar box in your underwear drawer. That's not the end of the world. because. It's not there for the money that it makes it's there for protecting you in life comes at you, so go make a little money on it if you want. That's okay. It's not a bad thing. It's just. You know outlets make the accessibility of it is the big thing, not the returns so the liquidity. Thanks, thanks for calling in open.
"emergency fund" Discussed on Marketplace Morning Report with David Brancaccio
"<Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> a <Speech_Male> reminder today from <Speech_Male> China that cities <Speech_Male> can ramp <Speech_Male> back up after <Speech_Male> a covert nineteen <Speech_Male> lockdown. But even <Speech_Male> there. It's taken three <Speech_Male> months in. The process <Speech_Male> is a slow one <Speech_Male> <Advertisement> in. Wuhan. <Speech_Male> <Advertisement> That were the strict lockdown <Speech_Male> began January twenty <Speech_Male> third train <Speech_Male> road and rail <Speech_Male> connections have been <Speech_Male> reestablished but initially <Speech_Male> only those with special <Speech_Male> health <Speech_Male> clearance code or allowed <Speech_Male> to leave. Here's <Speech_Male> the BBC's China <Speech_Male> correspondent <SpeakerChange> Robyn <Speech_Male> Brandt <Speech_Male> public transport <Speech_Male> the metro system. <Speech_Male> All of that is <Speech_Male> back online. They have <Speech_Male> lifted the most Dakota <Speech_Male> restriction <Speech_Male> so people living there <Speech_Male> who wants to leave <Speech_Male> can now do so <Speech_Male> if you want to go to Wuhan <Speech_Male> as well from <Speech_Male> the rest of China. You <Speech_Male> can do that <Speech_Male> but there are <Speech_Male> numerous conditions <Speech_Male> in place. I think the <Speech_Male> most significant <Speech_Male> is the need to have <Speech_Male> this Green <Speech_Male> Code on <Speech_Male> a widely used health <Speech_Male> APP on smartphones <Speech_Male> green. Basically <Speech_Male> means you are no <Speech_Male> risk if <Speech_Male> you've got that and you want <Speech_Male> to leave you hand today <Speech_Male> on one <Speech_Male> of the one hundred <Speech_Male> high speed rail links <Speech_Male> or one of the two hundred <Speech_Male> domestic flights leaving <Speech_Male> or by car <Speech_Male> then you can <Speech_Male> do that. <SpeakerChange> <Speech_Male> <Advertisement> Robin <Speech_Male> <Advertisement> Brent with the BBC <Speech_Male> and what is <Speech_Male> tithing <Speech_Male> in the religious context <Speech_Male> often ten percent <Speech_Male> in a <Speech_Male> <Advertisement> humanitarian gesture <Speech_Male> <Advertisement> twitter and Square <Speech_Male> <Advertisement> Co. Jack <Speech_Male> <Advertisement> Dorsey has pledged <Speech_Male> <Advertisement> twenty eight <Speech_Male> percent of his net worth <Speech_Male> to fund charities <Speech_Male> around the world helping people <Speech_Male> deal with Kovic nineteen. <Speech_Male> He's <Speech_Male> <Advertisement> pushing a billion dollars <Speech_Male> <Advertisement> worth of his stock <Speech_Music_Male> <Advertisement> in square and it was donor <Speech_Music_Male> <Advertisement> advised fund. That <Speech_Music_Male> <Advertisement> will do the giving <Speech_Music_Male> <Advertisement> these funds. Don't have <Speech_Music_Male> <Advertisement> to disclose how the allocate <Speech_Music_Male> <Advertisement> money would reportedly <Speech_Music_Male> <Advertisement> Dorsey will open <Speech_Music_Male> <Advertisement> this up for all to see. <Speech_Music_Male> <Advertisement> I'm <Speech_Music_Male> <Advertisement> David Brancaccio <SpeakerChange> <Speech_Music_Male> with the marketplace morning <Music> report <Music> <SpeakerChange> <Speech_Music_Male> <music> <Speech_Male> from APM American public media.
"emergency fund" Discussed on Marketplace Morning Report with David Brancaccio
"Many Americans may have an emergency reservoir of money. They never thought they could access. I'm David Brancaccio. Good morning amid this covert emergency. The federal government has changed the rules on tax protected. Retirement plans so people can take their money out without penalty and put it back when the cash flow returns. It's part of the two trillion dollar economic stimulus package. That should be getting more attention but care. Reflection is needed to avoid trading off hardship now for hardship in future retirement. Marketplace's senior economic contributor. Chris Farrell linked up from Saint. Paul thank you for connecting Chris. Well thank you David. Wright the old rules a hard and fast rule. You couldn't take your retirement money out. That had been tax protected. If you're under fifty nine and a half years old without this wapping penalty but if you look carefully in. The big stimulus plan came out of Congress. They're changing that. They're absolutely changing that. So penalty was ten percent. Plus you would pay ordinary income taxes on the amount you took out so now with the new rule with they're saying is no penalty and by the way you can pay the taxes that you owe on the amount that you withdrawn you can spread it out over three years or you can actually put the money back over those three years. So what they're basically saying is you can withdraw without penalty up to one hundred thousand dollars from your 401k. If it's related to the corona virus and by the way the definition of related it's really broad right so for people lucky enough to have retirement savings which is certainly not everybody in America. This could be a crucial lifeline during this terrible stretch in the economy but we have to remind ourselves that money was being saved for a reason. Your retirement I know. And here's the thing. The standard advice is you don't happen to this money because you're not gonNA have money for retirement but so many people are going to be hitting the wall and so when you run through your list of priorities is a pool of money in a choice between paying the bills and capping into retirement savings. You'RE GONNA happen to your retirement savings. But here's the thing David in one of the things that we've been talking about is thinking but what might be some the longer-term implications of this and I think this really highlights. People need a pool of savings that they can tap into an emergency and there has been this push for employers to offer that kind of plan. So what we've been talking about is already in the law but what you're about to talk about is on a wishlist. How would it work? It would let employees meet their short-term financial needs you. The employees would be automatically enrolled into this employee-sponsored payroll deduction rainy day fund or emergency savings account or sidecar account and this could be tapped at any time for any reason to pay the rent mortgage the utility bill. But the key is that it's through payroll deduction all right marketplace's senior economic contributor Chris Farrell. Thank you thanks a lot now the company TJ X. which owns the clothing retailers? Tj MAXX and Marshall's his announcing it'll temporarily layoff to furlough. What could be more than a quarter million of its employees this weekend? It's the latest retailer to trigger mass layoffs. Given the virus marketplace's Mariel Sagarra has more for a lot of retailers. Sales have basically disappeared in a matter of weeks because many of these companies still do almost all their sales in stores and stores have been forced to close to get the virus under control and because unemployment is really high right now and people are less willing to spend and as TJ said in an SEC filing yesterday. It can't tell how long this pandemic is going to last or how much worse it's going to get so it's cutting costs. It has about two hundred eighty six thousand workers and his furloughing most them they will be able to apply for unemployment and if they currently get benefits which caveat many retail workers don't Tj ax will continue to pay for those and this is happening across the industry. Hundreds of thousands of workers have been furloughed at macy's Kohl's gap JC Penney Ross and other retailers. I'm Maryelle Sagarra for marketplace and the Electric Car Company. Tesla is furloughing all non-essential workers. The plan is to reopen may fourth markets the oil producers cartel. Opec meets tomorrow to see if they can agree to cut some production to boost sagging prices. Crude is up three point six percent in New York right now after falling ten percent yesterday. It's twenty four dollars and fifty cents a barrel now leaders of countries that use the euro have failed to agree on a covert emergency stimulus. Package the DAX stock index in. Germany is down one percent Paris down one point six percent here. The Dow futures up sixty seven points three tenths of one percent.
"emergency fund" Discussed on The Rachel Cruze Show
"So just know that you know that is your security. That's if something happens that's would've third for that's your plan. B. Stay with it. So bad guys are awesome. Seriously thank you so much coming on sharing your story it's so motivating seen people do this stuff day in and day out cheesy so keep rocking great so. I just love their story. They are awesome and I hope you guys felt motivated here in this episode to get on track and push through baby step three. Thank you so much for listening. And if you've not subscribe to this podcast make sure you do that. And the spirit leads. You can leave a review if you liked the episode and everything that we talked about in this episode. There'll be a link in the show notes so again thanks you guys for listening and remember to take control of your money and create a life. You love if you guys enjoyed this podcast. We have more from the Ramsey network like Chris Hogan show. I am so excited to be able to talk to you all weekend and week out. We're going to talk about your money. Your Life Your dreams and your goals you know. Why because I'm your coach whether we're talking about building wealth paying off your home early investing paying for college and guess what how to become an everyday millionaire. We're going to focus on taking your calls because you matter to me together. We can do this. This is the Chris Hogan show to hear full episodes. Just search Chris Hogan wherever you listen to podcasts or good Chris Hogan three sixty dot com..
"emergency fund" Discussed on The Rachel Cruze Show
"I lean towards three or six months so those of you that might lean towards like just having three months saved. Maybe you have dual income stable job. Feel good about where you're at. You might need three months those of you that. Lean more six months. Maybe you're a single income family or a single person. Your commission based freelance irregular. In come a little bit of like instability there. Maybe you want more like six months now. If you're married there might be some compromise. I find that most men just want three months saved and most women what six months save. So it's not just gotTA MEET IN THE MIDDLE. All right next. You need to determine your expenses so we always say your emergency fund needs to be three to six months of expenses but people fall into camps here for some people their expenses are just the bare minimum like the four walls that they have food shelter utilities gas like the main things those are covered and they consider that expenses which is great others of you are on this camp over here which is where you want your lifestyle to stay exactly the same. It's like if someone loses a job. You have enough money. Say That your lifestyle doesn't have to change so winston I we looked at our budget. We said okay. Here's how our lifestyle could say exactly the same so we took that number and multiplied it by six and that is ours again. Neither campus right or wrong. It's just what you want all right. The second thing that you need to know to bulletproof your Emergency Fund is. Where do you keep your emergency funds? Any savings account will do. I really recommend a money market account. Though there's also banks online. They pay more interest than just traditional banks. But do your research. You don't want any hidden fees that will hit you if you pull the money out because remember. This is like insurance. It's not an investment. This emergency fund is insurance. It is not an investment our repeated again and again you want to be able to get the cash out quickly so put it somewhere. You're not tempted to use it on non-emergencies which brings me to number three. What is an emergency? And what is it so three questions to ask yourself is urgent is an unexpected and is it necessary..
"emergency fund" Discussed on The Rachel Cruze Show
"GonNa tell you how to bulletproof your emergency funds and we're going to talk to a super motivating couple who is currently in the staffed and staying the course. Because I want you to do that too. So here's Today's episode. Let's be honest though. Baby step three. It's hard because when you're getting out of debt you're getting always quick wins or hitting milestones and you're like yes the celebration continues but building up your emergency fund can make you kind of feel like womp womp. All we're doing is saving but listen. Don't let your foot off the gas. You want to stay intense here because this is what it's about you guys this is the final sprint. So after the savings is done you can actually breathe a little. Then you can focus on your retirement and your kids college and doing stuff for your future you really do you have a buffer between you and emergencies and honestly that is not the case for most Americans. In fact forty percent of Americans they go into debts win. An emergency hits that means the car breaks down they use debt to cover it so they end up adding interest payments onto something that was already a crisis it turns a really tough situation and too many sleepless nights by dragging it out even longer. This is because the personal savings rate in America is less than five percent five percent. You guys in the words of my friend. Chris Hogan that is not okay now. If you don't learn to shift your spending into savings you'll never get out of the cycle of baby. Step two so. You're either naturally a spender or a saver and I am may spend her and I can tell you when I look back on my life. A lot of my spending impulses came out of a place of immaturity. It's kind of like a five year old just being like I deserve it. I want it and so I really did. I had to rein in my spender tendencies. But once I did the idea of security felt so much better than spending to me and when you recognize that you can take the impulse out of it and learn to spend on a strict budget. It's way more mature than just doing what feels good in the moment so when you take that mindset of knowing that you can spend within your limit then you can have the patience to really save money and it's so worth it for the security of knowing that we're good. We have money in the bank. We have money saved..
"emergency fund" Discussed on The Dave Ramsey Show
"They. Don't they're accruing but you're not paying anything on them. If you're in school right correct. Okay so are you still lying there stressing you out just sitting there. Okay and the deal is is. I don't have enough money right now. Too You I I'm sure every month I'm taking my emergency fund to pay for school so I'm just like is this smart. You know how much is in your emergency uh-huh okay so There's twenty five thousand border that come from I'm like a special nature. I'm sure and he. And what were you making at the entrance place before. You're making twenty nine now fedex. I was making like thirty thousand then but the issue was is. I really couldn't tell They lacked me. I just couldn't produce so far a thing so I didn't WanNa stay in it and just continue the had been in it for like forty years I But it just wasn't working. I wasn't seeing any Negro in any and then they let me go to you know a few times because of my Loselle uh-huh I figured it might be time for change on wall but you're not making more money now. You're making it about what you were making. So you're still burning through your emergency fund to go to school right right well. The first thing is let's name out of the twenty five thousand. I would name three to six months Sir expenses the Emergency Fund and that would not be twenty five thousand. That would be less than that three to six months of expenses. And that's your real rainy day fund. We're not really getting into that. The rest of this money is used to be used to invest in you and I would use it for education. I love the idea of getting your income up to where you can address these medical bills and get them cleaned up our older though. She said it was. Epilepsy is how long ago Three four years. I'm sure I could get it down. It was originally thirty thousand and I called and debated with them and got it down and I've been doing that off and on for the last three years and I've got it down to ten thousand and I think I could probably get it down even maybe a little bit more. I'll bet if you call and offered five cash. You could probably clear it and use some of your money to do that. I would okay lump sum and be done with payments. Then we're down to just student loans that are sitting there waiting on you to graduate. And they're going to just sit there and We're not GONNA do anything with them right now and then we're gonNA start investing into you. I'm not a hundred percent. Sure you WANNA be all over the All over this psychology thing. Because I'm not sure you WANNA do it. I don't mind you're doing it if you follow through and you get a degree so you get a degree and you've got a plan to get your masters by working in using some of your savings to get there. That is a valid goal. And you could go forward and do that. Not Getting into your emergency and she fun but using some of your other savings five thousand of it clears up the ten thousand dollars in debt. Some of the rest of it is used for tuition. And you have a lay out a game plan to where I'm going to graduate by this date by taking these classes at this cost and you just you lay the whole thing out as a program and you budget and you go. Okay now where am not going to get that money out of savings no more. Because I don't WanNA get down into the emergency fund. I can use this much out of work and I work extra and I can do this. I can take some time. I'm off and then go back or you know. What kind of a plan can I develop to graduate? And yet that but I think you need to stop and go. Why was I getting this degree and is that really woo? Hoo I WANNA be when I'm forty. I don't mind if you do it but you did not call me up passionate about being a licensed therapist therapist. I didn't hear passion anywhere in this discussion. You are not disappointed about it. You're just kind of it's kind of an eye roll. Well so I guess I mean I am passionate about it then fight for it so much and fight for the reason when you're scared is you don't have a plan. You cannot see the end of that. You can't see the tunnel and so the.
"emergency fund" Discussed on The Dave Ramsey Show
"I don't want to buy drag button along for ten years. You know and not starting their investing right. No I agree yeah. So what is your annual income Well last year my company did about two oh five And that's your contractor contractor. You about three hundred and you're twenty five twenty five years old you are stood man. I'm impressed well done absolutely killer open phones at triple eight eight two five five two two five you jump in. We'll talk about your life and your money and So all right we're GONNA talk to Carl in Pennsylvania. Carl how are you. Good evening Mr Ramsey I'm doing good good how can I help. Yeah I WANNA know. I've already started reading your book. I would say I've only got a few pages. Don't got it like less late and I need to know where the put the Emergency Orange Fund. I have one credit card left and I've already it's down to about fifteen hundred or so good. Okay so what do you mean where to put them urgency on where. Where are you going to park? Were where am I going to park at like where is our mutual is a mutual ritual fund. No or a bank or you want to get a decent money market account but the thing about the emergency fund. It's not there to make money. It's not an investment. It's is there to protect your investments in other words you have an emergency fund. So you don't use the 401k to fix your stupid car transmission or something right and so. The Emergency Fund is not really there to maximize wealth. It's there to protect the it's more like insurance then in insurance costs you money to protect things so you're gonNA make one percent on it right now if you get a good little money market account and one percent ten or fifteen thousand dollars is not gonNa make you rich ever so. The purpose of the Emergency Fund is treated like an umbrella. The purpose of the Emergency Fund is. It's insurance it is not an investment if you just remember remember not an investment than it. Doesn't you know that you don't feel so obligated to make that money work. My Emergency Fund doesn't work it just sits there and looks at you. It's just stupid but but it just there in case something happens it's like you pay money on homeowner's insurance and most people never are hardly ever have a claim their their entire lives and very few people have their own home burned completely down. I mean it's very unusual. Statistically so or have it blown over with a tornado like people we talked to yesterday. I kind of very unusual so most of the time we we put money out there to protect so good financial planning a good good game plan for your money has offense and defense and the Emergency Fund is not the offense. It's the defense and if you keep that in mind and you don't worry about the Invest I mean I. I don't even know what mine pays. But probably in the one percent wrenches money market with a local bank. That pays me really good because I have impala money money in there so simple all right drew is with us in Texas. Hi Drew Merry Christmas canal. Merry Christmas I'm so excited to be talking to you too. Do I have a question I have a question I am twenty nine and my husband is thirty seven and we just paid off our house. The summer We actually our plan was to sell that house and then by the House that we found which is our dream house However the the the owners kind of drag their feet on the House that we bought and we have to keep our first salves and by this house so we wound up getting tenants in our first house? Why we were that that that is not logical the owner? You're buying from drug their feet. Why does that require that? You keep that house well so the owner on the House that we were buying we should have bought it back in like May and they kept telling us we had a deal and then they would say no and we were so in love with the House that we bought the house but by the time we didn't want to put our house on the market and so we had to deal with this new house also in the which way. Why don't you put it on the market when you had the deal? Well we just didn't know if we were GONNA actually get the deal with the house because the owners were so kind of all at all so we wanted to make sure we had a contract and then done deal in case we because we didn't WanNa leave are also when you're conquer deal. Why didn't you sell your house so then we did? I'm but what happened was it was the slowest time of the market because it was the data summer which is pretty much the only bad time to sell your house in Texas. And so we wound up getting Tenni- When we saw that it wasn't going to sell we would? We haven't had a gap period so we wound up getting tennis for six months Who are there until the end of March with an option two months month lease and we have a pretty big shovel? We're very lucky and so we weren't sure if we should keep how as a rental property he thinks so no shouldn't capet as long as you did but no yeah no it should have been should already been gone not you should because the deal is this you got that house paid for that made it make sense to buy the Dream House but now you've got two houses and so that Dream House has a but big mortgage because you didn't sell the other house right. Yeah that's not cool. Your original plan was planned. Original plan was a good plan. Don't become don't become a landlord by default. You got it got it. Got It only only do that by plan. And you would only buy rental property when you get your home paid off and you save up money to buy rental property with and so That's what I would do now. You do what you WanNa do but this you're going to look back and five years. Start Hating this old house before this is over. If you don't get rid of it so quick that gets gets out of their march put gas slipped up put on the market. Get rid of it. Cash that though at at the big Throw at the big but mortgage dream house and then attack that mortgage in your baby step six and go ahead and get it knocked off completely..
"emergency fund" Discussed on The Dave Ramsey Show
"Car the next day and it's four hundred bucks? What are you gonNA on de sit until payday? I mean It's up to you. You can do what you WANNA do. I want you to be out of debt as bad as anybody on the planet I love getting it and people out of debt. I love you being out of I love you being this close to being out of debt but we tell you baby step one thousand dollars. I wouldn't get below that because you're you know that's that's not even enough. It's just a starter. Emergency Fund is not even a real emergency fund. You know but man you sitting there with nothing you got two hundred dollars or something. That's what you'd so you got one hundred thousand dollar one hundred dollars. Lift your name but I mean if you do that tomorrow and you'll get paid the next day and you can put the thousand dollars back then. Just wait one day. Hey you know wait one week. Whatever it is? You're you're that I wouldn't do it now. I want you to have a little bit them. Paint them thousand dollars is not much margin but it it just gives you a little bit of Murphy Insurance Magazines and Madison Wisconsin. I'm Megan welcome to the Dave Ramsey. Show Hi Dave. Thank you for all that you do. I I wrote this out hoping it would be quick and concise. So I'll just read this quick com five years ago. I went on a trip to Italy and our rental car. We drove the foreign There was an area near the city centre. That said authorized traffic only so when we came to the barrier for it. I don't recall. I didn't back up others the street with narrow but I made turn around the barrier Later after our trip I got a ticket. And they'll to me from Italy for something like two hundred year old I tried calling to explain to get out of it but I wasn't able to talk to anybody so I decided to ignore it Now it's five years later and we suddenly got a letter from a collector asking looking for four hundred thirty dollars and apparently there are actually two tickets. But I don't know where the second offense occurred because I wasn't aware of the time that we did this twice So I don't I didn't know about the second one now but the total between the two tickets is eight hundred and sixty dollars per se Because I don't really feel like these tickets sir. Valid based on what happened. I don't WanNa pay them but now that there was collection. But I think it's too late for me to try to work with the Italian place to get rid of them. But I wanted your advice and whether this is the same type of collections that you talk about where I can offer a lump sum to get rid of that And my questions basically are whether or not that's possible how much you think I should offer and also if there's any need for me to worry about this being on my credit report My credits currently good but my husband and I are working baby steps six and we ultimately having having your credit score and buying our next home cash So can I ask the credit report them or is it something I should worry about because we don't have a plan. Um Um I don't know what has happened here but I smell a rat pattern in the credit card world which is not what we're talking about the credit card world if you have an old credit card debt the banks sell all those off for three to five cents on the dollar fifty bucks for a thousand dollars and these debt buyers by these things and They oftentimes there's been several articles out. They'll try to collect on a debt. That's actually been bankrupted which which is illegal to try to collect on a bankrupted. They'll try to collect on a debt. That's outside the statute of limitations. And they're buying junk debt is what it amounts to and then and they just go after people and rather than deal with the hassle of it and the fear that it's going to be on their Credit Bureau report people pay him something when they shouldn't have to because there's bankrupted and it's the balance zero after bankruptcy so I'm not saying any of that applies here except that this feels like one of those people this feels like a debt buyer buying junk debt from from tickets in Italy me my God from five years ago right I mean really really so I honestly don't know anything about the law on it. Hypothetically anybody can pop something onto your Credit Bureau report. I suspect suspect that there's a statute of limitations on this. I suspect the chance of them collecting internationally on you. is almost zero zero. I suspect you probably could beat the snot out of these guys. And so what is your household income. One hundred fifty five thousand so it's not that we can't do what I was asking. I what I was trying to determine if you wanted to fight could you afford it because if it was me right now and that happened I would Ha- I would. I would call my attorney and gave him a couple of hundred dollars and tell them to pound these these people into sand because I smell a rat I think this is a skunk. I don't think there were two tickets. I think there was one and I think they're trying to load you up and just let's see what happened. See what they can get away with our small quotas on. Yeah I did email the Well I I call them first first and then the guy gave me is or I gave them my email address because he was going to send the evidence of a second ticket. Because I called and said I don't know why they do Yes he did is there are pictures. Apparently that he got from. I guess the Italian Police With license plate in the car at like fifteen minutes apart but like I said I don't know oh where the second thing happened and how we didn't notice But there's also because they had sent me like certified mail and positive you're not dealing with the Italian government. No this is actually a collection agency or other collections agency. That bought this debt. Yeah they're debt buyer like doc. I'm talking about their their their bottom feeder right. Okay and so in that case they probably have fifteen dollars in. This is what I'm saying so yeah I don't know if you WanNa if you WANNA pound them it sounds like they've got a little bit of evidence I don't know if statute of limitations has run or not If you want to fool with it you can Dan or you could just say I'll give you a hundred bucks. Okay there's no Soviet non. I was thinking there's no possible way. I'm giving them eight hundred dollars. principle almost spend a thousand dollars to not give him eight hundred Though I mean I was thinking about you know whether or not it should get any sort of lawyer involved but it seems like I thought I'd probably end up spending more I will and you will. But it's just I'm just I'm just hillbilly. I like a good fight so it comes down to. And so. That's I just can't stand some by screwing me around and I think you're getting screwed around. I really do and you do too. That's what your story. You told me. Lead me to believe that right. Yeah yeah so the convenient thing is to settle it for some amount of money you can afford zero two eight hundred. It's none of those numbers are going to kill you. Whatever you do get it in writing and you stay what to all those emails in hard copy and you keep it in a file rest of your life because this these idiots my raises up again as as if you didn't pay it before or something because I'm not accusing the Italian government nine but I am telling you that debt buyers are the bottom feeders of this world there's a few of them that are decent but most of them are scum right and so you're dealing with slimy and so be careful? Don't get slammed get everything in writing electronic access to your checking account. Keep hard copies of everything when you're.
"emergency fund" Discussed on Before Breakfast
"Welcome before breakfast a production of iheartradio good morning. This is laura welcome to the before breakfast podcast. Today's tip is to create the time equivalent equivalent of an emergency fund. If you read a lot of personal finance literature or listen to personal finance podcasts like my favorite how to money you're probably familiar with the concept of monetary emergency. Fund life happens when it does it can be expensive. An emergency fund is easily accessed cash that can cover an unexpected car repair a broken pipe or anything like that these things fall in the category of known noon unknowns. You don't know exactly what unexpected expense will arise but you can be pretty sure something will happen. Having savings means you can absorb zohrab the expense without going into debt. This is why dave ramsey for instance advises that even people with significant high interest debt save one one thousand dollars as their first step toward financial stability that baby steps emergency fund often keeps people from going deeper into the hole. There are many parallels between time and money and i think this is one area where seeing parallels can lead to good choices good time management means creating the time. It quits of an emergency fund. This is easily accessed time that you can deploy when something unexpected happens if you have this open meantime then an emergency means. You don't need to borrow time from other priorities. You have a place for the emergency. Go slack in your schedule means as you stay on track. One of the best ways to do this is to avoid scheduling things for at least one multi-hour block somewhere in the week friday. The afternoon is a common choice to leave open as it tends not to be anyone's peak productivity window. If nothing goes wrong during the week great this open time means you you can quit early but more likely you're week will go something like this. Your biggest client whose project is due thursday. We'll call on wednesday morning with some additional additional requests. This means that anything non urgent that is scheduled for wednesday. We'll need to move if friday afternoon is open. It can go there. You're still on track. You end the week accomplishing exactly what you hope to but if friday afternoon is already packed as is every other minute of your week then you start having to borrow from future weeks which are equally pact. That's when the time debt starts to add up and people feel overwhelmed so that's why open space is the easiest way to create a time emergency fund but there is one big challenge with this a financial emergency fund is there unless if you spend it even the wealthiest person however will see his time emergency fund disappear once those minutes are in the past. You can't borrow time now now. From a low key week you experienced in two thousand five. You have to keep creating a time emergency fund again and again but there is a more renewable form of time emergency fund and that is banking time with other people. Here's what i mean. Humans are a social reciprocal species which is a fancy way of saying that if you do something nice for me. There is an extremely good chance that i will do something nice for you. If you ask. This doesn't worked for everyone. There are certainly some sociopaths out there but most people want to help people who've helped them so whenever you've got a little extra capacity reach out to people readout to your colleagues and see how you can help support them one of their work. Could you help make a little bit lighter. You can do this in your personal life to if you've decided to take school holiday off for instance because you don't have a good childcare option see if your neighbors are your kids friends need supervision that day to you've banked favors and now at work for instance when you're big client has last minute requests your colleague will happily cover your wednesday meetings wchs you've relied on a time emergency fund and you're still on track life is full and life is call. So.
"emergency fund" Discussed on Optimal Finance Daily
"It's no wonder that people regularly asked me if what they you're doing is considered normal when discussing their personal financial questions with me we like knowing not only where we stand but how we measure up compared to our peers but really who am I to say what's normal. Is there even such a thing. This is why we have rules of thumb in the financial world and well there are exceptions to all of the rules. They are generally good guidelines to help make decisions. One of the more common rules of thumb I discuss with people is the importance of establishing emergency fund also often called a nest egg or rainy day fund. How much should you have in your emergency fund? The rule of thumb is three to six months of your expenses while you may need more if you own a home that could potentially be hard to sell work in a field that is highly volatile or specialized or have. Large family dependent on one income. This is a pretty good gauge of things to make sure you're protected when real estate prices plunged along with a lot of people's job prospects during the last recession twelve months would have been more appropriate because that's how long it took many people to find new jobs when selling their home wasn't an option because suddenly their houses were worth less than the mortgage. What's the emergency fund four to get you through an unexpected loss of income? The emergency funds primary purpose is to ensure you have the money you need need to cover all your core financial expenses in the case that you or your spouse lose your job. Being unemployed is stressful enough so it's nice to know that you have that money set aside so that you don't have to accumulate a mountain of credit card debt or miss payments that can impact your credit score. These savings will ensure this unfortunate. Event doesn't cause too much long-term financial damage in the event that the loss of income is more permanent.