37 Burst results for "Emergency Fund"
Fresh update on "emergency fund" discussed on Chris Hogan's Retire Inspired
"Hogan Three Sixty Click on the group section there and joined the everyday millionaire facebook group. Okay so back to the social media question all right here we go. This is from Gina Gina says. Where do we park an emergency fund? She says it feels strains. Just letting large chunk of money sit in a savings account okay. Gina. Here's the deal. It is a large amount of money. Because what you're doing is giving yourself cushioned between you and life happening. You WanNa, Park that money and what I call a money market account now a money market accounts going to give you a better rate of return than a typical savings account. But I want you to hear me with this. A lot of people struggle because the dollar amounts just sitting there. The Emergency Fund is not an investment. The Emergency Fund is insurance. think about it its insurance because it's protection, so that's the deal. That's what you want to understand. It is protection between you and life happening. So you, do WanNa. Park it there. You do want to leave it there your investments, your one 401k's and things of that nature, these are things you're investing in for the long term, but this emergency fund is sitting there and Gina. By the way another little tip here is if you ever use money from your emergency fund job one. Job One is to stop everything until you replace that, so you always WanNa have three to six months of an emergency fund sitting there ready to protect you. That's the goal and that's the focus. Be Ip's I know a lot of you probably felt that same way you go Chris. Sanders, there's thirty thirty five thousand dollars, just sitting there and I could be doing blah. Blah, BLAH! Know that money is insurance. It is doing exactly what it needs to do for you, and that's sitting there being ready if something POPs up and I'm GONNA. Tell you as we've all learned here. In the last three three months with this Cova pandemic, we are absolutely unclear more clear than ever of the need of an emergency fund more clear than we've.
Fresh update on "emergency fund" discussed on 790 KABC Programming
"If it's an emergency fund, it needs to be liquid meaning you need to have access to it when you want it. So you know, sometimes people say, Well, should I put that in a seedy down at the bank? Well, the problem with CD down at the bank is that if you need the money and you take it out before it matures, then you'll pay a surrender penalty on that, and you'll lose interest, etcetera. So unfortunately, the best place that I can think of is what's what's called the Money Market Fund. And the money market fund is liquid. You can get the money whenever you need it. And so it's there for you. And unfortunately right now, if you're lucky, you can get 1/3 of a percent, I think, but again, it's the premium. The cost of the money that you could have learned. Is that No. My view always is better safe than sorry. My do always is to be conservative. My view always is to think of the downside first, and then look to the upside and make sure to the extent that you can, but the downside is covered. And our conservative view is that way because our clients are again over 50 and mostly within five years of retirement or five years into retirement. And we have two goals for our clients. We want your money to last a long a cz you do And for that the emergency find is an important part of that. We also want you to have financial peace of mind. And if you have an emergency fund, then you I think might have some peace of mind of knowing that you have that. Therefore, you in case something comes up. Okay, so it's just the rainy day money. Now, if you're over 50 if you are retired or retiring soon, we'd love to see if we can help you. And as their name implies, we work with retired people who are retired or retiring soon. We have lots of resource is available for you on our website. It's our P o a dot com and on the website. We podcasters show we have videos. We have articles. We have all kinds of information about retirement planning. You have the ability to sign up and bit and attend one of our seminars that air coming up. We have three of them during this next week. We have one on retirement planning in uncertain times, which I think you'll find very interesting. We talked about Social security and we talk about diversification. We talk about planning for retirement. And then also we have one on Medicare. And this is an important time of the year for that. So we have one on Medicare. And we also have one on cybersecurity. Protecting yourself from guys and gals who wantto hack into your stuff and steal your identity and help you with that as well. All of these are no charge obligation, and they are live but their virtual so you can attend from the comfort of your home. And it is our p o a dot coms are website. All right, We're going to take a break. When we come back. We're gonna talk about Social security strategies for married couples. So stay tuned. This is money matters, and I am Ken Marife. Them..
The Fed begins purchases of up to $250 billion in individual corporate bonds
"Right so as promised what the fed is doing and it is doing a lot among the latest the central bank started buying corporate bonds today that is not new was announced a couple months ago but it's a big deal as the fed does what it can to backstop companies and their employees market place Nancy Marshall cancer explains how it's gonna work when a company wants to borrow money it can issue corporate bonds the buyers of those bonds are lending those companies money now the fed is going to buy a broad cross section of corporate bonds if they meet certain standards they must been rated as investment grade that is less risky as of March before the coronavirus lockdown started Christopher Whalen is chair of Whalen global advisors you're the fed is trying to be helpful because they are really uncertain about what's going to happen later this year when one says the fed wants to be sure companies have all the money they need to whether the pandemic the fed is also making this program anonymous just buying up corporate bonds without anybody asking it to that avoids any stigma from companies requesting fed help Catherine judges are Columbia University law professor there's always a concern that if you're looking to the federal reserve as opposed to the market for financing that you might be revealing something about how desperate you are for financing the thinking is if companies have all the financing they need at reasonable rates with the fed buying their bonds they won't need to lay off more workers Frank no tap is chief economist at CoreLogic the purpose is to help these companies remain good employers in the marketplace stand on their feet not lay people off and hopefully bring people back into the into the work force and if a company isn't able to stay on its feet and defaults on the bonds the fed bought chairman Jay Powell can turn into an emergency fund set up by the treasury department to backstop the
How to Prepare Your Wallet for a Disaster
"How to prepare your wallet for a disaster by Austin with PT, money dot Com. I teach English in western Japan and was here last month to witness first hand the carnage that the to Hokuto earthquake and tsunami had on the northeastern coast of Japan by now many people have seen the devastating footage of the soon nami reaching mainland with whole houses, being ripped from the ground and cars being thrown around like matchboxes. These goods which people had saved up for years were destroyed in minutes. The monetary aftermath of this disaster will be a challenge for Japan for decades to come. If you pay attention to your finances, you know that a disaster like the one in Japan can and will wipe away your finances. All of the saving and investing you've done can be deleted in minutes if you don't prepare for it, so one go about preparing your finances. In case, a catastrophe were to strike. What are the steps you can put in place this week? That would make a huge unexpected financial hit less painful on you and your family. have an ever-growing emergency fund. To help ensure yourself or your family start an emergency fund today using it. Sub Savings account with an online savings account like I N G or ally. Once you open this account, create an automatic monthly transfer of twenty five to two hundred dollars to the account from your regular savings, so it continues to grow every two weeks month or two months. This is money that will only be touched in the worst situations where all of your other money has been wiped out, and you have no other options. Don't be content with five hundred or a thousand dollars in this account. Make it grow every month because it will ensure your financial safety that much more in case, a disaster affects your family in the future remember. It's always a good problem if you have too much money in your emergency, Fund. Insure your big ticket items. Your House and car should already be insured, but consider extra insurance for prized possessions in case of natural disasters, fire theft, etc, maybe you have a fourteen thousand dollar wedding ring or a rare painting from France. That's worth ten thousand. Can you ensure these items for a little bit every month? In case of emergency by spending a little to ensure these high importance items, you'll allow yourself to sleep easily knowing these items can be at least monetarily replaced in a time of need contact your insurance agent today to see about rates for your most valuable high ticket items. Have two to three credit cards with large credit limits. It's been a month since the Japanese tsunami and people are still holed up in shelters in times of need. Having quick access to money is important and something that can provide another level of security is a credit card not having to worry about the amount of cash you have in a time of need is one benefit for those who are credit card, weary need water, clothes, food or
Cuomo says Congress should "stop abusing New York"
"Governor Cuomo says his meeting with president trump today was productive and included the discussion over both re opening New York as well as large infrastructure projects it was a good conversation the president's from New York so he has a contact for the things we're talking about Cuomo maintains it now's the time to get these projects going given the long term benefits as well as the jobs they would create the governor says he and president trump discussed building new rail tunnels under the Hudson River the second Avenue subway and the rebuilding of LaGuardia airport Cuomo also called out Congress accusing them of abusing blue states by not providing emergency funding to help
Providence received approximately $509 million in grants
"Let's talk about hospitals here for a second week we just spend some time with Jim Brunner talking about the the unemployment stamp that has been devastating people in the hundreds of millions of dollars out of the pockets of of folks who desperately need it here in Washington and it I can't help but draw a comparison to what some hospitals are doing in the area and I'm not talking about the the smaller places that have very thin operating budgets that basically the the the money that they bring in can can pay for payroll for the next week or two I'm talking about the big big places one of them being Providence health system it's one of the the largest and richest hospital chains here in the United States now they they've got this spring this is according to New York times they got at least five hundred nine million dollars in government funds smaller pore hospitals are receiving a pittance compared to that in Providence is sitting on about twelve billion dollars in cash which it invests it's got like stock portfolios there's no discernible difference at least to me between what happens on Wall Street and what this supposedly not for profit hospital system is doing yeah I mean this is been the problem with the not for profit hospital system is been in did these complaints are not limited to this I think it was a Providence hospital in a in the one in Everett I think that that fire to the emergency room doctor low right was complaining that they were not following safety procedures with with with new brand new with this the very front end of the the pandemic a brand new coronavirus patients they're testing people in the parking lot or something along those lines yeah it in so you have these not for profit in the whole way you get not for profit status if you are a hoot if your hotel the hospital chain is you traded that to that means you get a tax break a significant one you trade that to the government by providing charity services in other words you do pro bono work on people in the community it's always many of these hospitals fall way short you have the very creative accounting on what actually was charity work or they just don't do it at all with no real teeth behind it and to see a company sitting on billions of dollars collect billions of dollars right in aid is a little bit along the same lines as what we saw with that with the but the bond houses and with the investment firms and with the banks back in the in the in the mortgage crisis collecting people who had caused the problem then collecting on the problem yeah it would seem to a lot of people to be pretty deeply offensive although we didn't care to have the political courage to actually change it in a manner that would help us this is another situation where these for profit or rather non not for profit which is not non profit not for profit hospital right there have a medially put their strong the drink as soon as the government said you know we have eight to provide they lined up even with sitting on significant assets now they'll okay they'll tell you that you know this this money was available we had to get even the people doling out the the relief money that they'll tell you we will priority was getting it out right we didn't want to sit on it and come up with systems and develop a system to take the time to double and triple check things because this was an emergency and people needed that money but I would I would argue that will take your check K. can you look at the balance of the place and know that if somebody is is sitting on you know ten billion dollars whatever it may be that that that supposedly is for emergencies right that's an emergency fund that's that's and that's the savings account that you go into when you need to tap it because something catastrophic has happened yeah what else is out for it was not you would be very very difficult to say this was an oversight I think that the one of the problems that happened with the relief is that it really wasn't earmarked toward small businesses everyone claimed it was it was earmarked toward business and the big businesses were much I mean when you have a team of people including attorneys and accountants that can get your paperwork in very quickly and when you have a lobbyist who actually has the the the call list of local lawmakers run you have those things you're going to get to the front of the line and this is what happened with with companies like Providence another company that we saw from the the paycheck protection program relief aid who lined up immediately to get their snouts in the trough again and then take the bulk of what was supposed to be for companies that were on the brink and it's a shame because I don't actually mind so much on the paycheck protection and if these are if it's actually helping people who are minimum wage people as it was with as much of it was designed to do I think that's great if it's helping people to hire in the scale I hope there is a cut off point for it and I appreciate that as well I don't know that I am worried about as much about somebody making three hundred K. a year when the patient protection thing rolled out and in the end the judge the law didn't worry about the mother which was which was terrific about it but this particular one in Providence and other hospital chains that are the the not for profit hospital chains it it wouldn't bother me if they were at
Banks are Cutting Their Risk By Cutting Your Credit Card Limits
"On this Wednesday may twentieth. Hey have you applied for a new credit card in the last couple of months if so and if you've had trouble getting approved well you're in good company? Given all the financial uncertainty were experiencing right. Now banks are nervous so they're making it much tougher to qualify for new cards to avoid taking on customers. Who may not be able to pay their bills. According to the Saint Louis Federal Reserve forty percent of. Us Bank say. They're getting choosier about who they lend money to. Where that's issuing credit cards or personal loans? That's the biggest pull back in lending since two thousand nine. According to see net among the biggest lenders to play defense this way discover financial services apply for a discover card. And you'll find the company verifying your employment not just your credit score and if you are approved your credit limit may well be less than you'd hope for on recent earnings called discover CEO. Roger Hawks Trial said the company's taking these and other steps to quote curtail risk to put it more plainly discover and other financial institutions. WanNa make sure they don't get saddled with too much. Unpaid debt pre pandemic discover had been growing steadily and profitably twenty. Nineteen was a good year and the company was expecting twenty twenty to be even better instead. Discover lost about sixty million dollars in the first quarter of this year and its future like the future of so many other businesses is clearly uncertain which is to say things may not be any easier at the other major credit card companies both city and capital. One say they are also tightening up credit requirements C net reports. Okay so maybe you can't get a new card and you haven't seen one of those zero balanced transfer offers that to flood your mailbox in months but that's not all. Some companies are reducing credit limits for existing customers. It's happening a lot one out of four American credit card users. That's fifty million. People have had their credit limits slashed on at least one card in the previous thirty days some have even had an account closed. That's according to a survey by compare cards a service owned by lending tree. Those changes are hitting Gen Z. Millennials and Gen xers equally according to see net. Apparently baby boomers are being spared so far. This is a tough thing to have happened. If you've just lost your job or you expect to and it often comes as a rather ugly surprise credit cards dot com analysts had rosman told Marketwatch. Most people don't realize how much freedom credit card issuers have to cut limits or even cancel cards without warning companies that acknowledged they're assessing credit limits. Include Wells Fargo. Us Bank in American Express and American Express spokesperson told Marketwatch that the company is based in credit limits on quote real time. Evaluations of a person's financial help so too is synchrony financial which issue store credit cards including JC Penney. Gap and American Eagle outfitters discovers. Roger Hawks child however is expressly said the company is not slashing credit limits or closing inactive accounts given the millions of Americans who are now jobless hawks trial call those actions challenging according to Bloomberg. Pulling away credit. When they need it most can have tremendously adverse impacts hawks trial set indeed. Many people rely on credit cards as emergency funds in April about a month into lockdowns about forty seven percent of Americans had credit card debt. That's up four points from March. According to a survey by CREDIT CARDS DOT COM and having your credit limit reduced or a card cancelled can hurt your credit score. Even as news rolls out about the new challenges of getting and keeping credit banks are also enrolling people in programs intended to help almost half a million discover account holders signed up for its skip a payment program. Those account holders have balances of more than three and a half billion dollars altogether. Yes you heard that right. Billion WITH A B. Other issuers are also
New York City Nightlife United Launches Emergency Fund for COVID-19
"A number of New York City night clubs have gotten together to launch the NYC nightlife United fund to help local venues in the city survive Deanna mora owns the venue friends and lovers in crown heights she tells ten ten when she helps some big corporations help by donating we're all helping each other and the more you help us squeeze or pressure these bigger brands who are trying to figure out meaningful ways to allocate their marketing budgets the more we can all benefit from this together and we don't really see a light at the end of the tunnel per se because we're now states for which means what twenty twenty one before we open she says many
UN releases emergency funds to help vulnerable countries
"The U. N. is hoping to raise six point seven billion dollars the undersecretary general for humanitarian affairs mark Lowcock told me about the situation the poorest countries are facing what is true source of problems ready the fastest what we're seeing the gradual spread of the virus noticed foster's some people fool but nevertheless a growing exhilarating spread them the disease it brings and of course the poorest country have the weakest health systems theorist Dr is the thirty seventh lowest ability to respond to disease but in fact they even bigger calamity is the economic collapse which is leading to a spike in poverty huge increase in hunger the specter of famines unfolding on the horizon reducing immunization services and I don't know what we're doing now new plan is responding said that second sort of problem give us some examples that it would be useful to get some sort of focus on you mentioned firemen all this specific groups in in crotch all countries that are at risk more than others of course this problem now affects every country on the planet and pretty much every person on the planet said our plan deals with about sixty four countries but we didn't that group of countries the ones that the light you see the largest loss of life if we can get a good response to the ones that are already the most vulnerable said places like Yemen the Central African Republic Afghanistan Democratic Republic of Congo I'm within those countries the most vulnerable groups to pay the whole tend to be the youngest in the family the oldest basically and women and girls in particular now because the disease seems to have the biggest effect on older people and one thing about the countries where humanitarian agencies work is a populations tend to be younger said the disease itself may not be the biggest problem that we are facing for the rest of this year and into next year in terms of life saving activity okay so so in a way you're agreeing with the World Health Organization when they say that the numbers in western Europe may be falling they're saying that that may not be the case in the rest of the world the you'll see you'll saying something different you're expecting it to be pretty devastating in the months ahead in project entries our our assessment is exactly the same as W. a case that first P. teams to be passing in Europe and North America but there's an accelerated if slower than lots of people full growth of cases in the poorest countries but the poorest countries have more than one problem cavities help her have any problem these are the consequences of economic collapse are very much on our minds as well but we do think that you know we can C. S. rapid growth of cases in Africa policy South Asia Latin America all the valuable reasons as
Neiman Marcus eyes Sunday bankruptcy filing, $600 million emergency funding
"A number of big retailers taking a good hard look at bankruptcy J. C. Penney in advanced talks now Neiman Marcus says it looks like it's going to file for bankruptcy on Sunday as it is just desperately seeking about six hundred million dollars in emergency funding so lot of big not as digitalisation be retailers kind of on the ropes right now you might say
Senate approves $484 billion coronavirus relief package
"Congress is racing to approve another major infusion of coronavirus relief nearly half a trillion dollars to the nation's small businesses hospitals and testing programs the U. S. house is asking its lawmakers to return in time to vote tomorrow the Senate has already approved emergency funding president trump says he is ready to sign the
White House and Democrats Near Deal on Aid for Small Businesses
"Morning the White House and congressional leaders are working on a new wave of coronavirus relief funding it's to help replenish the small business loan program that ran out of money in less than two weeks house speaker Nancy Pelosi said on ABC news yesterday that an agreement is close everything we've done at three bills in March for all bipartisan the central package will be too and the and the businesses will have the money in a timely fashion NPR congressional reporter Kelsey Snell has been following this one Hey Kelsey hi there good morning so the bill that's being discussed now with speaker Pelosi there just called an interim package four hundred and fifty billion dollars who's that money for well treasury secretary Steve Mnuchin said over the weekend that they were narrowing in on a deal that would include around three hundred billion dollars in additional money for the forgivable small business loans that's the paycheck protection program no the original three hundred and fifty billion dollars that they approved ran out in less than two weeks even with that rocky rollout and all those delays that we've heard about now there's also an additional fifty billion dollars for small business disaster loans seventy five billion dollars in emergency funding for hospitals I'm told that the last bit of negotiating over the weekend focused on around twenty five billion dollars for testing there's some questions about how that would roll out where that money would go what kind of restrictions Michael along with it and you know treasury secretary Steve Mnuchin says this could all be done early this week you know he mentioned over the weekend the possibility of a vote today in run it but we haven't even seen a bill yet so I would caution that that is possible but unlikely at this moment okay still so speedy it kills you know that you were reporting that the national governors association wants Congress to approve like five hundred billion dollars in direct aid to states so does this bill have any money for state and local governments it does not and I think that's really interesting here there is none of that money and five hundred billion dollars is a lot of money and primarily what they were talking about there was that the governor is worried that the stay at home orders and all of the additional response that isn't just involved with you know getting testing out there and making sure that people's needs are met they're worried that all of those changes to the economy are really negatively affecting their budget now it is important that this is something that Democrats wanted in this package but it not being there maybe the strongest evidence yet that there's another larger package to calm you know just a couple weeks ago the federal government injected two trillion dollars into the economy now another four hundred and fifty billion possibly you just said more to come what is all this spending tell us about what state we're in right now yeah they give you a little bit of a picture of the way the Congress is thinking about this money the staff I talked to over the weekend call this latest pot of money more of a gap filler actual new packages money and that's the moment where in nearly half a trillion dollars is a gap filler I know that can feel really hard to put your head around and to get contacts but this number we're talking about a gap filler number is more than half of the entire first bank bailout bill of two thousand eight now this talk about a fourth package would mean depending on who you talk to possibly include more stimulus last rescue so maybe infrastructure spending or some other way to get people spending money and back into the economy a good way to think about is look back to two thousand eight in two thousand nine Congress did that original bank bailout called harp at the end of George W. bush's last term and then a few months later president Obama work with Congress on an even bigger stimulus bill and it's possible that these additional pieces of legislation could follow that model Kelsey let's see there is an agreement this week do you know how the members of Congress will vote that is a really good question we know that they're both out of Washington until may fourth to send no Tim insure social distancing and leaders have indicated that Congress needs to act quickly on something members will get twenty four hours notice the house Majority Leader told members they could vote as early as Wednesday but getting members back to Washington is really difficult so there's talk about a proxy voting proposal which is supported by house speaker Pelosi still really very interesting to watch how Congress figures out how to vote in this time of coronavirus NPR's Kelsey Snell thanks Kelsey
China and the U.S. are growing (or not growing) economically apart
"And I WANNA go back a couple of days to this report from the International Monetary Fund saying the global economy was going to shrink this year by three percent and then in that same report. They said you know. We're looking at a rebound in twenty twenty one and I wanna know if you as a trained economist on this radio show today by that. That's a hard one. I I think when we looked at twenty twenty we expected a global rebound from for the year in January. We saw that. The trade agreement remember that last year. That was the biggest crisis. Twenty nineteen trade agreement between the US and China with the Tailwind for global growth more broadly. And so when the World Bank is basically saying is that nineteen just world on pause for a year and it restarts twenty twenty one. I do think the world looks better in twenty twenty one but I think it's going to be hard list to get to three percent. Gdp grouse Lovely in twenty one and been everything. That's going down right now right right. We'll just we'll just note here. The varying sound quality. Here this being live rated but we're all doing From our living rooms and let me ask you to turn to China here for a second. We're doing some China the rest of the program but we have to point out that What had been one of the fastest growing economies in the world shrank last quarter by almost seven percent. It's pretty clear we're not going to get them the Chinese to help drive out of this lockdown right now at the Chinese. Were counting on us to help them to get their economy back on track and since it's still an x force case economy now. The Chinese are worried. Because we'RE NOT GONNA be buying as many of their goods so the whole world is stuck in a funk. Nobody's GonNa be healthy guy that drags everybody through this. We're all going down together and it's very interesting that to me that we're in a in a moment where world leaders can't really see to coalesce around anything but we need each other more than ever need each other to be stable more than ever to be able to get out of it. Well so look Neil on that thought of US meeting each other more than ever. Let's apply that domestically here for a second and the idea that Congress. Now we've exhausted that three hundred fifty billion dollars in the Small Business Administration loan program. The Senate in the House are out on recess and cannot come to terms on what to do next. If you're an American business person what what are you planning for? Because the uncertainty it seems gets worse every day in this crisis but still you have to plan in process rights are. Luckily we have another outlet? Which is the Fed the Federal Reserve? Has I thought they were holding meetings chair Powell's a garage because they were throwing out so many kitchen sinks that this problem they have done everything and probably some things that I haven't thought about to arrest this problem in really make sure that credit flows to households in consumers at around Congress in around Leveraging some of the congressional move says while and enlists remember that banks are actually going to be part of the solution here instead of the problem as they were in two thousand. Eight Bank. Balance Sheets are very strong very solid after ten years of regulation so there is some help stealth flooding even. Congress is on recess for right. Now let me ask you. This is look this is in a way. It's a scary question. It's a little bit cynical but it's something that's been on my mind so yes. The Fed is going great guns and doing what it can part of. What it's able to do is because it has the backing of the Treasury and and some approvals by the Congress. Do you suppose though that it's possible that this crisis accelerate so quickly as Congress can't come to terms that it that it exceeds the capacity of the American government to fix while it depends on how behind Americans themselves get on debt payments and things like that and it depends on the whole that the federal government lied to steepen that dot the base that you're talking to Washington going on right now Is that the Republicans want to send money to the Small Business Administration program. That's been helping small businesses with their payroll and at the same time. Democrats want to send money to the state and to the hospitals that have been dealing with this problem on the front line. Republicans don't WanNa do it there They don't want to send emergency funds stays in hospitals. Which is I just. Don't understand how to be an ideological thing. We'RE GONNA get ideological here. We're all GONNA be in big trouble because this is a problem that is going to require creative thinking outside any problem that That had faced the American people. And it's GonNa require us to think about the economy in two different stages one is. What is the Post Lockdown Pre Vaccine Colona virus economy? Going to look like and it's GonNa be one but we have to shift workers to contract tracing we're going to have to ramp up testing teach people how to be back if they've gotta be a completely different economy and then we have to think of how to transition the economy from that economy into a post vaccine economy which is an attempt to really truly normalized for world. And there's no I know ideology belongs in any of that discussion. Because if you don't increase the size of the federal government or state government or any government you can't get from the please vaccine pays to the Po- sexy is this Neil Miller real quick and I mean like thirty seconds. Neela it is fundamentally a discussion once again of the role of government in this economy. Right government right now. Is the prime the pump right? We know that things are going to get worse before they get that. We just started the social containment in late March or seeing the effects of that head Americans now but eventually it will get better because we're also seeing progress in testing and innovations in vaccines and treatment. It's a hard road road till then but look what already. The American people have gotten shut down an economy voluntarily to attack head on health crisis that was projected a few short weeks ago to be much worse than it is already turning out to be so in that sense. There is hope that we have enough ingenuity among us all to combat this crisis and to get through it together
Federal judge invalidates key permit for Keystone XL pipeline. Tribes push back on ANCs included in tribal COVID-19 funds.
"The National Native News. I'm Antonio Gonzalez a federal judge. Wednesday invalidated a key hermit for the keystone xl pipeline. Judge Brian Morris says a permit issued by the US Army Corps of engineers bypassed necessary environmental reviews the order says TC energy formerly trans. Canada cannot build across waterways along the pipeline route until the core does more work on the permit Victoria wicks. Has This report. Doug Hayes is an attorney for the Sierra Club one of six environmental agencies that sued the Corps of Engineers Hayes says the core used a streamlined approval. Process called nationwide permit number. Twelve that precludes public review and circumvents transparent approval processes good pipeline would cross approximately six hundred eighty eight. Different waterways rivers streams and wetlands across Montana South Dakota and Nebraska and the Army Corps of Engineers is the agency that approves those crossings in the Order. The Federal Court notes that the expediter permit is used. When a project will result in minimal damage to aquatic environments Judge Morris also notes that the core failed to consult with us fish and wildlife or national marine fisheries before determining the pipeline. Construction would have no effect on endangered species or critical habitat. Hey says the car has to do further environmental review and consultation under the endangered species. Act before it can reissue the permit. Qc energy cannot build through any of the waterways along the pipeline route until it revamped its process into related cases tribes and environmentalists have challenged permits for the one point. Two Miles of pipeline. That crosses the border between Montana and Alberta. Tc Energy has started preconstruction on that segment for National Native News. I'm Victoria wicks in rapid city. South Dakota Judge. Morris is hearing arguments in those two related challenges to the keystone. Xl Pipeline. Thursday. He'll issue an order in those cases at a later date. Many tribal leaders are calling for Alaska native corporations or an sees to be excluded from funding. Set aside for tribes in the Cares Act Wyoming Public Radio Savannah Mar reports. Gerald Grey is chairman of the little shell tribe of Chippewa in the Rocky Mountain Tribal Leadership Council he says Anne Siese Corporation status should preclude them from accessing the eight billion dollar tribal stabilization fund. The last good native corporations should not be getting any of the funding because they're not tribes and We just basically don't feel that you know a good idea to be doing that this week. The Rocky Mountain Tribal Leadership Council urged the US Treasury Department to exclude an sees from the emergency funding. The Great Plains Tribal Chairman Association when a step farther calling for the removal of Tara Sweeney. As Assistant Secretary of Indian affairs. They say since she wants worked for an there's a conflict of interest at play but Shauna President of the KONIAK regional corporation says Sweeney simply following the law simply put Alaskan native corporations are eligible for funding under the cares act because we're included in the law and we're going to use the funding from the cares act to help our communities prepare and respond to the nineteen tribes in an CS. Have until Friday to apply for their slice of Betrayal Stabilization Fund. It's not yet clear how the money will be divided up for national native news. I'm Savannah Mar Oglala Sioux Tribal. Police have verbally warned or issued citations to more than one hundred and fifty people on the Pine Ridge Reservation in South Dakota for violating curfew or shelter in place orders the tribes currently on a fourteen day lockdown due to a public health response to Cova nineteen. I'm Antonio
CDC, FEMA have drafted a national plan to reopen US, report says
"We're getting a glimpse and how this pandemic may play out a draft back to work strategy for the nation has been created by the CDC and FEMA Washington post got a hold of portions of it first the document offers guidance for local and state governments have to reopen the county country safely in phases the paper obtain to parts of the H. part documented begins with a communications campaign community readiness assessment running through may first so nothing opens before then second phase includes manufacturing and testing kits and protective equipment that will be stepped up emergency funding would be increased around may fifteenth stage three openings would eventually start after that and would depend on conditions locally and on the testing schools daycares number facilities to care for children would be the first priority
CDC, FEMA have drafted a national plan to reopen US, report says
"Getting a glimpse of how this pandemic may play out the draft back to work strategy for the nation has been created by CDC and FEMA Washington post reports the document offers guidance for local and state governments and how to reopen the country safely in phases but it's going to take awhile the favorite changes to parts of the eight part document in progress he begins with communications campaign and community readiness assessments through may first that's what we're in now the second phase manufacturing and testing kits protective equipment stepped up emergency funding increased may fifteenth stage three openings would start after that testing it would depend on conditions locally schools daycares and other facilities that care for kids would be the first priority for re opening
New York City Schools Are Closed for Rest of Academic Year
"Well well mayor mayor de de Blasio Blasio says says school school students students in in New New York York City City won't won't go go back back to to the the classes classes until until September September he he announced announced today today the the schools schools would would remain remain closed closed for for the the remainder of the school year in order to save lives in the midst of the culvert pandemic EE CBS's Kristi Kelly C. N. reports the Bossier was hopeful school will be back in session this fall but with a different approach we think September is a good day to think about when things get more fully back to normal and we know it will take a different kind of approach than we've ever had pathetically as I say on the mental health side the priority now is to ensure that all students have iPads to continue remote learning and that seniors will graduate in time the possibility of summer school taking place is still up in the air merda Blasi also says as the city near at the state's emergency funding of twenty five million dollars for its food pantries he's not sure how long it will stretch for and yet that everything is going to be needed is in place that's why I came to foods are Catherine Garcia the city says the emergency funding will pay for more than nineteen million meals
"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.
Singer Pink says she had COVID-19, gives $1M to relief funds
"New York the singer pink so she had come in nineteen and is donating five hundred thousand dollars each to two emergency funds in a pair of tweets the singer so she tested positive after she and her three year old son started displaying symptoms two weeks
Coronavirus relief bill: What it means for business
"This disaster relief bill will provide small business owners with a combined three hundred fifty billion dollars to cover monthly expenses like payroll rent and utilities along with emergency funds of up to ten thousand dollars we've got four closures provisions in the bill and a whole variety of measures to keep people from just completely falling apart Lawford says this can hopefully bring back workers who have already been laid off they could look at additional funding
Coronavirus stimulus talks could drag into Wednesday after lawmakers said deal was close
"Senators had hoped to have a deal in place on the third corona virus relief bill but partisan divides and anger have stopped the measure in its tracks Senate minority leader Chuck Schumer says they are still talking the Senate continues to negotiate what will likely be the largest emergency funding bill in American history we've had almost continuous discussions with secretary Mnuchin but the stall out is grating on the nerves of the president you should not be a time for political agendas but rather one for focusing solely and squarely on the needs of the
"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
"Johnson isn't Ontario Day my wife and I are currently on baby step two and my question is the one and three. What's the best key? Is it best to keep cash own. Keep that hand. Keep that on hand cash or would it be wise to places in an investment fund that allowed you withdraw anytime no fees be best to collect the interest on this money while it's not being used. The purpose of your Emergency Fund is not an investment or by saying not an investment an emergency fund is insurance or by insurance insurance costs. You money to protect the things that are building you. Wealth emergency funds purpose is not to build wealth so the interest rate that you get on your emergency fund does it does not matter. You'RE NOT GONNA make money on your emergency fund if you're waiting on that to become wealthy you're never going to be wealthy because you're going to have it in a one or or a one point two five money market account or it's going to be a shoebox in the corner of the closet and really there's not a lot of difference. I mean you got ten thousand dollars dollars in your one percent on it. Nobody cared the math on. It is just ridiculous. So you're you're trying to get the wrong thing working for you you don't you don't don't expect to make money on your homeowner's insurance you don't expect to make money on your car insurance it protects your assets that's what the Emergency Fund us it protects your assets. You don't get you. Don't lose the house because you lost a job you you can put a transmission in the car without going into debt. It's there for that kind of thing. It is not there to build wealth with and that's where you missed your point here. Not An investment insurance insurance costs you money investments making money not an investment insurance. Now if you're putting a kitchen sink or you're fixing a gas leak or in most cases working on a car you're not. Diy saying that you are not do it yourself. You are certainly not pulling your teeth. You get an expert to help you do certain things and it's amazing amazing to me. That is complicated. Is The tax law. Is that some of you are the very complicated return are trying to spend days and hours and weeks on it. Get somebody else to do it for you. I don't do my own taxes. If you've got a real simple return then you probably don't need a tax pro. You don't spend that kind of money. Spent three hundred a buck on something. You can do for twenty bucks with software right but if you've got a complicated return it'll make you more than.
"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
"Insurance supplies most credit unions are insured by the NCUA a which is the equivalent for credit unions of the FDIC and so most financial institutions that you deal with nowadays that ninety some odd percent of them. I don't worry about their financial solvency as a matter of whether you bank with them or not. Now I don't deal with the large megabanks under any circumstances and I actually don't understand why anybody does why you would get treated the way you get treated at Wells Fargo or Bank of America and then keep doing businesses beyond me because if you wanna find incompetence and by the Bushel basket you can find it around places like that. It's horrendous Indus. I mean there is dumb airlines who are dragging people off airplanes. You know it's just. The customer does not matter. People don't matter to them. You're a number so so I have chosen to do business. Only with regional banks where I can have solid connectivity with relationships and or smaller local banks and or credit unions there are a few credit unions but very few that are very very large and kind of lost their soul. The ninety nine percent of the credit unions out there are very customer oriented. They're like a very very small town bank in most cases. But if you can get a local bank you're just GonNa get treated better and this day in time with the Internet and the way they package their services you're GONNA get the same level of you know web access web sophistication for dealing with you. Know your checking account moving money from savings to checking and balancing your reconciling. Your checking account. We used to call it bouncing. How's your checking account online? All of that you can do it all just about everybody's got all that now. I mean if you find somebody this sub-standard on that then don't do business with them. But but you know it's it's just really even the smallest of the small pretty much has a cut and paste thing. They've put together in there that they bought from somebody but bottom line is a service to you is just fine just fine. You've got access to multiple. ATM's you've got access to everything out there and what you're looking for is relationship and you may get some better fees fees here or there credit unions by and large. We'll have better deals on checking in a few little odds and maybe a little bit better interest rate on your savings or something like that But not always but most of the time so just check all of that. And that's what you're looking for but I'm not gonNA take a quarter of a point on my my savings account and then be dealing with freaking wells. Fargo no thank you. There's not enough money on the planet to get me to go in that place again. No thank you I mean they have fired almost ten thousand people now for creating accounts fraudulently for people just to meet sales goals when you fire ten thousand people for fraud in your bank. Hello I mean really I mean you deal with somebody like Wells Fargo is. There's just be Silly Bank of America. The way they treat people fifth third the way they treat people suntrust the way they treat people I mean. Just look at these large banks and look at it. No thank you I. Don't I want anything to do with that stuff. No I'm not calling for a boycott. I'm just calling. I'm just telling you look. Why do you do business with people? Give Lousy Service and you know and mistreats you. That's just silly. Don't do it. Matthew is with us in Providence Rhode Island. Hi Matthew how are you doing. How's it going better than I deserve? What's up hey so my wife and I are in baby step two hundred and ninety thousand dollars of debt besides the house good Lord on one yeah mostly private student loan debt of mine? What are you a doctor or a lawyer? I'm a stupid musician a stupid musician. Addition yes sir. I actually I'm I'm not currently working with now making my actually in insurance so that just goes to show you have biggest stupid tax. I've ever done. Lord what is your degree. Did you get a degree so even worse. Oh my Lord and how much of this one hundred ninety thousand did did you spend on that not getting a degree thing. Yeah about one hundred and fifty. Yeah I've been beat myself up the last however many years. So what is is your household income. Now Sir one sixty. That's that's yeah we've got a big hole in a decent shovel good okay and so on almost all the one ninety s student loan then are one ten of it is Yeah so it's mostly stood alone is fourteen a tune in credit cards and about just under five of a car that we're GONNA pay off very soon. Yeah Okay so you're working the debt snowball. So we're going to snowball wherein baby step up to The question is so my my plan I plan I should say was to finish this about three years with the income that we have And we're GONNA upgrade and how we have a family of four after After we after him The question that my wife proposed was a a house you know. What a hundred thousand worth of equity in the house? So she was proposing what if we get down to about the eighty thousand dollars marker so And a few years to as many cut cut the debt snowball by year by selling the house at that point finishing off In renting while we save up for. It's still the same time to get into a new house though. Yeah I mean that's my. My original plan was said just worked at that snowball. You're going to get you're going to get I mean because here's the thing if you sell the house and pay off the debt early you still got to put one hundred thousand back in an account before you buy a house right right so you're swapping pockets doc. It's with your money here. You're not gaining any time on your calendar towards getting a new home so I'm all set right there almost sit right there. Moving is expensive emotionally and financially so I mean if you had three hundred thousand dollars worth of equity and you still had two hundred house with later. That'd be different but you got a hundred and it's going to be gone. I mean when you do this so now you gotta start over saving for a down payment and so you don't really gain anything on your calendar doing and now. Hey I'm glad you're working your way through it. It sounds like you got it lined up and Hey we've all done stupid stuff in the past. It's in the past. Put it behind you. Keep a plow through wit. Clean it up. Learn your lesson. Teach kids don't do this so you change your family tree now man way to go good for you. Congratulations that puts this hour of the Dave Ramsey. Show in the books. We'll be back with.
"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 The Dave Ramsey Show
"Live from the headquarters of Ramsey solutions broadcasting from the dollar car rental studios. It's the Dave Ramsey show where mm-hmm folks save money and Cook at home you can cook high quality me at home for less than six dollars a meal when you sign up for butcher box but your box delivers healthy one hundred percent grass fed beef free range organic chicken and heritage bread pork directly to your door for only one hundred and twenty nine dollars a month and shipping is free plus new members get twenty dollars off and two pounds of free ground beef in every order for the lifetime of your subscription get this deal right now butcher box dot com slash Ramsey.
"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.
"emergency fund" Discussed on Motley Fool Answers
"This is considered a rollover, and there are some rules about rollovers, including limits. Only one every twelve months, so if you've already done it once, and then the next time, you try it again, it's actually considered distribution you won't be able to put the money back in the IRA, and you may owe taxes and penalties. So make sure you learn all about the ins and outs before trying to strategy. Now, if you're taking money out of a Roth IRA, and you don't get the money back in the contribution. You put in will still be taxing penalty free. It's any growth that you took out that you'll you'll pay tax. And penalties. If you're not fifty nine and a half traditional IRA, if you take it out and don't get it back in you're gonna pay taxes and the penalties. And of course, the negatives there to the same with the 4._0._1._K if you don't pay it back you'll have missed out on all that growth in your retirement will be compromised stock market tanks. Well, that's true. Some people might be very well. Let's try to look on the bright side. That's right. There's someone in the studio in fact. Okay. And then my last option borrow from family and friends in this. If you've if you are ineffectually where that's fine. It's not embarrassing won't cause any any friction with folks. It's perfectly fine solution. When I bought my first house involved borrowing money from my dad, who in the end just said, you know, what don't pay it back. You're just not gonna get inherit as much when I eventually died, but I was happy with that. So that's a great option. If you can do it. The cons of it are can cause troubles borrowing. Money is always can be very difficult with family and keeping things fair. Right. And if you're not in a position of having being able to pay it back that causes problems. So. Got asked resort. Is that broS last resort? Well, it depends. I mean, if you have family where? You know, people are generally well off and of established like, listen if you're ever in trouble. I'm here to help you out. I think that's the first resort. It's great. It's probably an interest free loan, and you don't have to go through all the other hassles. No paperwork. Right. Right. So just depends on your situation. So there you have it building an emergency fund is the most boring of financial planning advice ever because sitting on a big pile of cash just isn't very exciting. But right now, I mean, there are hundreds of thousands if not millions of Americans who either a wish they had built an emergency fund or very happy. They did goddess of your situation having one I think is an important part really defined Dacian of a good solid financial plan. What's your advice, though? For like, you said those who are furloughed will eventually get back pay. So there will eventually come into a big pile of money. Right. Do you have any advice then? Yeah. Well, so obviously if you've borrowed any money to do this back payback if you've stopped contributing to your IRA's five twenty nine or something like that get back on that track. I think they're actually could be a silver lining to this in the sense that. If you go without a paycheck for awhile it really forces you to prioritize your budget. And I think it's very possible you eliminate expenses that you thought were important. And then you realize you know, what actually I don't really need that. So once you're back on firmer footing. Consider like, well, maybe I maybe I don't need cable anymore. Maybe they didn't need this service. Maybe the need the gym membership. Like, I thought I did. But then once you get that cash don't go not don't be like, oh, I got this check. Now, I'm going to go on vacation or anything like that? Remember one part, obviously is to build up that emergency funds. So start listening to this podcast episode all over again rewind..
"emergency fund" Discussed on Motley Fool Answers
"But there are people who believe that. Then there are people who believe it to be bigger, so Suzie Orman. Thanks. It should be eight to twelve months of expenses. David Bach and other well known personal finance writer thinks it should be at least a year in his emergency fund is two years. Wow. And there's is there sort of any empirical evidence for the size of a emergency fund. Well, I looked and fortunately Bank rate just came out with a survey, basically asked people have you had an emergency. And how big was it? And they found a thirty percent of respondents reported that either they or an immediate family member have experienced one major unexpected expense. The average of that expense was thirty seven fifty three thousand seven hundred fifty dollars a third of that more of the third of it. It was more than five thousand dollars. So that says right there that based on that evidence a good emergency fund should at least be. Be four five six thousand dollars. Then what about the income disruption? That's usually because you've been laid off in most situations. So I looked at that. And right now, the average duration of unemployment in the US is nine weeks. So a couple of months, and that's about the long term average. But when you look at things like the great recession of a decade ago that spiked to twenty four weeks, so basically on average the unemployed person was out of work for a half a year. So in those types of switches situations, I don't think you need an emergency fund for those outlier experiences. I mean that was the worst economic downturn since the great depression. But it definitely makes sense that when you look at the average unemployment of being more than two months it points to like. Yeah. That whole like three to six months, it's not a bad guideline. So we should point out that one of the reasons why some people think you don't really need that big of an emergency fund is because when you've been laid off in many situations, you get a severance pay right? The average severance pay is one to two weeks for every year of service. So you know, if you've worked for a company for five years, you can expect a severance pay of five to ten weeks. I hear the Molly full. Yeah. It's a little more generous. Also, I've heard discussions of not being quite so generous. But one thing I should. So I think one thing everyone should do is find out your own company's severance package, and in the case of the Enrons and the WorldCom's and the Lehman Brothers and all those situations. Many of them they were so they went out of business. They were really I don't know the exact details for each of those companies, but in many situations when a company goes under you lose your job, and they'll have money to pay severance. There's also unemployment benefits and those are run by each state, but the maximum they pay. Her week is pretty low the average cross the country is four hundred dollars per week. So six hundred sixteen hundred dollars per month. Not a lot of money better than nothing. Not a lot of money for those federal employees out. There might be wondering can you apply for unemployment benefits, depending on your situation? The answer is yes. But if you go back to work, and you get the back pay you have to return the unemployment benefits, which might be fine. Maybe you just need something to get you there. Right. Exactly. But so certainly for people in that situation. It's something to look at so bottom line, what should the size of your emergency fund. B? I still stick with the three to six months must be expenses the type of situations that would say like I need to have a bigger one. I have big non-negotiable expenses like a mortgage or car Carlin. I have a big family. I don't have extended family who can help me. Those are all I have a job that is more likely that either a I'm going. Lose it during the next downturn. Or at least my pay will be somehow affected by that. So those are all factors that you would use the German size of your emergency fund. What should it be in cash?.
"emergency fund" Discussed on Motley Fool Answers
"The government shutdown roughly four hundred twenty thousand Americans across the country are going without pay. And if missed at this point at least a couple of paychecks imagine going a month without any income. Would you still be able to pay the bills most people wouldn't as bro as mentioned before on the show? Forty percent of you as adults don't have enough money in savings to cover a four hundred dollar emergency. So now seems like a really good time to have an episode dedicated to building an emergency fund. And what to do if you don't already have one so bro where do you wanna start? Well, start for first of all we talked about this a little bit in the last episode. But it's. People have been focusing on the set down on the federal employees in some people are saying like, well, they're going to get their money eventually, but this is getting an estimated four million contractors. And then the so many businesses that are built around the federal government suppliers. Die restaurants cab drivers service providers. They're not going to get paid. They're just missing out on their business. You know, we here at full HBO. We're at Alexandria Virginia. We're in the suburbs of Washington DC. We all I know people who are being affected by this including spouses, of fools who are being affected by this. So it is pretty widespread. And there's no question that the economy is gonna take a little bit of a hit because of this state and pours actually estimates that very soon the cost of the shutdown is going to exceed the cost of the wall that President Trump wants. So it's it's kind of crazy, but. The bottom line is. And we talked about this a little bit in the planning meeting that if a lot of people would have thought, well, I'm a government employee. I have a safe job, for example, that people in the coast guard, right? And I was fun. Fact, I was accepted to the coast guard academy, and I had this ultimate I was thinking of going into the coastguard and fly helicopters. But instead I decided I wanted to be a priest. So I didn't go and we see how that worked out. But you think like if you're in the coastguard your paycheck is safe, and this happens, really what it goes to show. No matter what situation you're in something unexpected could happen and the solution to that is the big old boring. Emergency fund, right? It's the most standard advice from all financial planners. But it just shows the need for it. Because if you don't have that emergency fund, you're gonna have to rely on other sources for the fun. So we're going to talk about those later in the show in the pros and cons of each option. But all of them are inferior to just having some cash on the side. So first of all is talking about why you would have emergency. All right. We're talking about the shutdown. So it's an income disruption. But could also be an unexpected expense home repair car repair medical Bill, something like that that you didn't budget for. So that's the reason why you would have an emergency fund what should the size of the emergency fund. Be the thing. We've always said three to six months of must pay expenses. So it's not three to six months of income or three to six months of expenses. It's the must pay expenses flex you must. Right. Not. So, but then I was thinking I've been saying that for years because that's what I've always heard from your for years. And I was wondering where did that come from? Is it like one person who's the first person who said that in and is given credit for it Nancy is a couldn't find an answer. But what I did find is the actually is while that's the consensus on it. There is a bit of degree disagreement. So first of all there are people who think three six months is too much. You have other ways to pay bills. And again, we'll talk about those in a little bit. But some people do think that having that much cash on the side. You're missing out on opportunity cost what you could have gotten. If we're in the stock market or the things you could've spent it on and had some fun. I don't agree with that..
"emergency fund" Discussed on Motley Fool Answers
"We're gonna talk about how to build an emergency fund how to maintain one in what to do if you don't have one when an emergency does happen. We'll also spend a lot of time remembering Jack Bogle the founder of vanguard who passed away last week all that. And more on this week's episode of Molly planters. So, bro. I have a feeling I already know. What's up? Yes. And it's not us. It's not us now. So last Wednesday vanguard founder, John John Bogel passed away at the age of eighty nine many, longtime fools listeners will know he's wasn't inspiration in a hero to many of us. We have a room named in his honor here at full HQ. We've been lucky enough to host them here at full it's a couple times he even wrote in the fool mobile several years ago at a convention in Houston. So he's just been such a figure at many of our lives that with his passing. We thought we'd take this opportunity in this episode just to do a little tribute to them. So let's start with a little bit of biography. And we've talked about him before. So some of this is going over some information we've passed along, and I'm sure many of you read some of it. But. So we won't go too deep into his biography. But he was born in one thousand twenty nine to a relatively affluent family, but it didn't last very long because then came the great depression family, lost most his father lost most of the family fortune. And then according to John Bogel, his father turned alcoholism, his parents got divorced and mostly disappeared from his life at that point from what I understand. So that made Jack Jack Bogle have to be in a situation where he had to work a lot as a young kid. But he actually didn't think that was such a bad thing. Even though in the course of all of this. They lost their family home, and they had to move in with relatives. He said that. He's proud of the many jobs that he had he worked as a newspaper boy as a guy who set up pins at a bowling alley all kinds of these things. But he said he sent quote they were tough times. And I started working when I was ten years old delivering papers and mentioned becoming a waiter. I learned you work for what you get. And I feel sorry for people who haven't had that upbringing. He really does see it as a disadvantage if you didn't have to work a little bit when you were younger. So he eventually gets a full scholarship to Princeton. But he still has to work as a waiter at the school dining hall, while he's there actually struggles a little bit academically at first, but then recovers and graduates, Magna cum laude, and then when he was there even at that young age he recognized that actively managed mutual funds were challenge was difficult to beat the market..