Sinking funds are a godsend. I had a million things coming up in the next 3 months (car registration, conference, being in someone's wedding) and it felt so much better to save a little every month and pull the money out versus having to put savings on hold to handle these expenses.
Absolutely! It's crazy how much sinking funds help your emotions. It feels way better to handle this stuff over time. And all of those can get really expensive (especially being in someone's wedding). I totally understand that. Thanks for watching Chelsea :)
This makes so much sense to me. With a house, 3 kids, 2 cats, one income, and an unpredictable commission based one at that, we've been wondering how much to save up. Makes me rethink things. I really appreciate this video! TFS
Pajama Mama yes! There’s just so many different things going on and you want to make sure it’s all accounted for. So glad you found it helpful! I really appreciate you watching :)
You nailed it! We tend to focus on one thing at a time but we really need to split our focus in two, saving and paying off debt. It will take a little longer but the peace of mind that comes with having money set aside is priceless.
Absolutely! When you have money set aside it provides so much peace. I would literally be freaking out right now if we didn't have the emergency fund. My nerves don't do well with unpexected things unless we're prepared.
I agree! I’m paying off debt but I’m single. If I lost my job I would be screwed with just $1000. I’m working to save at least 3 month of expenses for now. After I have that I’m more comfortable throwing it all towards debt.
this hit hard last year at the beginning of covid for everyone .who would have thought the entire world would shut down ! Setting aside sinking funds = peace of mind and youll sleep better at night .
I realized that many of our emergencies...we knew it could happen. I started a category with 18 mnth, 3 yr and 5yr I knew it funds. All affordable and possible to reach
Love that man! You're totally right about knowing that most of them will happen. Glad to hear you've done that. I know it will reduce a ton of stress for you.
Great suggestion about having multiple emergency funds. I still have a question about emergency funds. We met our goal for the emergency fund for 3-6months expenses. If we have already met the goal, do I still need to keep track of it on YNAB(have a category for it)? I'm only few days into Ynab, so watching your videos and others and reading old threads on reddit. Do you have a video regarding what you do on Ynab once you have met a goal? How do you handle it? Do you re-name or hide the category?
Sorry! I just realized I never got a notification for this comment. Once you've met a savings goal, if you plan to spend the money (like for a vacation) you can just delete the goal, spend the money, and then hide the category. If its for your emergency fund, I would reset the goal to be a "category balance" that way if you ever need to spend your emergency money, the goal will kick back in and tell you that you need to add more to that category to build the emergency fund back up. I wouldn't ever hide the emergency fund category though. Instead I would just drag it down to the bottom of my budget, that way it's out of site and you can focus on everything else. But you always want to keep the emergency money there in case you need it. Hope that helps!
First, I have been greatly helped by your videos! Thanks. But I like it better when you’re in the RV. That looks a lot like a house in the background 👍😊
Hi Nick, Want to start by saying, keep up the great job with these videos. They are very comprehensive and insightful. I feel like I'm always thrown new ideas on how to think about my money after watching them. Secondly, I recently started using YNAB and have built a Savings Category that I currently have my one Emergency Fund under, I've reached half way towards a cushion for job loss but realized major vehicle repairs and major medical bills are two additional funds I am considering adding after watching this video. Do you have any tips or ideas on how to fund these? By that I mean should I put funds across each of them equally? Or do I tackle them one by one? They're all somewhat important since I have a used Honda CR-V and do have an Autoimmune Disease that impact me drastically from time to time. Also, how do you figure out amounts for things like major vehicle repairs and medical emergencies? Any thoughts you can share on how to approach funding these 3 new emergency funds would be greatly appreciated. PS: If you could make a YNAB video on how you would approach this would be awesome also. Thanking you in advance and looking forward to your reply. Candis
I was just going to say how I loved the inside of your Airstream, then thought I'd get funny... I figured you were at someones house. Thanks for the reply! 👍😅
Insurance deductible/excess is NOT an emergency, sure you don't know when you will need to file a claim with your insurer but you know that your car insurance has a $600 excess. Not all insurers will deduct the excess amount from their payout, you may need to pay this money upfront before your insurer will process your claim.
Principles of Increase for real though! You’re typically already stressing in an emergency, the last thing you need is money stress Togo along with it!
Sinking funds are a godsend. I had a million things coming up in the next 3 months (car registration, conference, being in someone's wedding) and it felt so much better to save a little every month and pull the money out versus having to put savings on hold to handle these expenses.
Absolutely! It's crazy how much sinking funds help your emotions. It feels way better to handle this stuff over time. And all of those can get really expensive (especially being in someone's wedding). I totally understand that. Thanks for watching Chelsea :)
This makes so much sense to me. With a house, 3 kids, 2 cats, one income, and an unpredictable commission based one at that, we've been wondering how much to save up. Makes me rethink things. I really appreciate this video! TFS
Pajama Mama yes! There’s just so many different things going on and you want to make sure it’s all accounted for. So glad you found it helpful! I really appreciate you watching :)
I love the idea of having multiple emergency funds, similar to having multiple sinking funds! Great video, Nick!
TruFinancials thanks Denis! It’s really helped us out a lot and keeps us sane. Thanks for watching!
You nailed it! We tend to focus on one thing at a time but we really need to split our focus in two, saving and paying off debt. It will take a little longer but the peace of mind that comes with having money set aside is priceless.
Absolutely! When you have money set aside it provides so much peace. I would literally be freaking out right now if we didn't have the emergency fund. My nerves don't do well with unpexected things unless we're prepared.
I agree! I’m paying off debt but I’m single. If I lost my job I would be screwed with just $1000. I’m working to save at least 3 month of expenses for now. After I have that I’m more comfortable throwing it all towards debt.
Melodie V love it! You’re totally right. That sounds like a great strategy. Thanks for watching :)
you will sleep better at night knowing it there.
Yes Kari James is right. You most certainly will!
Never thought about multiple emergency savings funds but I’m intrigued!
Wander Wealthy by Tess Wicks it’s definitely helped our sanity to break them up like that for a couple key areas :)
After rewatching this, any idea how many times I said the word "emergency" lol geez😂
i didn't notice. but good job on driving the point home!!!!!
Kari James haha well I’m glad it wasn’t too noticeable!
I counted 432 times 😂Just kidding. Didn't count how many times.
TruFinancials 😂😂😂 wouldn’t surprise me.
this hit hard last year at the beginning of covid for everyone .who would have thought the entire world would shut down ! Setting aside sinking funds = peace of mind and youll sleep better at night .
I realized that many of our emergencies...we knew it could happen. I started a category with 18 mnth, 3 yr and 5yr I knew it funds. All affordable and possible to reach
Love that man! You're totally right about knowing that most of them will happen. Glad to hear you've done that. I know it will reduce a ton of stress for you.
Great suggestion about having multiple emergency funds. I still have a question about emergency funds. We met our goal for the emergency fund for 3-6months expenses. If we have already met the goal, do I still need to keep track of it on YNAB(have a category for it)? I'm only few days into Ynab, so watching your videos and others and reading old threads on reddit. Do you have a video regarding what you do on Ynab once you have met a goal? How do you handle it? Do you re-name or hide the category?
Sorry! I just realized I never got a notification for this comment.
Once you've met a savings goal, if you plan to spend the money (like for a vacation) you can just delete the goal, spend the money, and then hide the category.
If its for your emergency fund, I would reset the goal to be a "category balance" that way if you ever need to spend your emergency money, the goal will kick back in and tell you that you need to add more to that category to build the emergency fund back up. I wouldn't ever hide the emergency fund category though. Instead I would just drag it down to the bottom of my budget, that way it's out of site and you can focus on everything else.
But you always want to keep the emergency money there in case you need it.
Hope that helps!
First, I have been greatly helped by your videos! Thanks. But I like it better when you’re in the RV. That looks a lot like a house in the background 👍😊
Hahah it is! I filmed this at my parents house when I was visiting.
Appreciate you watching!
Sorry. I’ve been MIA. Catching up now. I never thought of separating EFs.! Easy to do. And your right, it’s a psychological thing. Thanks for tips.
C MacKay glad to hear from you! And yes, its really helped us out a ton. And keeps us sane! Which is most important ;)
Great tips Nick! Financial rules of thumbs can be helpful, but it is better to tailor things to your situation.
You're totally right! The personal we can get with our money, the better. It can really make a huge difference.
This is great,
thanks! Would you recommend HSAs?
Hi Nick,
Want to start by saying, keep up the great job with these videos. They are very comprehensive and insightful. I feel like I'm always thrown new ideas on how to think about my money after watching them.
Secondly, I recently started using YNAB and have built a Savings Category that I currently have my one Emergency Fund under, I've reached half way towards a cushion for job loss but realized major vehicle repairs and major medical bills are two additional funds I am considering adding after watching this video.
Do you have any tips or ideas on how to fund these? By that I mean should I put funds across each of them equally? Or do I tackle them one by one? They're all somewhat important since I have a used Honda CR-V and do have an Autoimmune Disease that impact me drastically from time to time.
Also, how do you figure out amounts for things like major vehicle repairs and medical emergencies?
Any thoughts you can share on how to approach funding these 3 new emergency funds would be greatly appreciated.
PS: If you could make a YNAB video on how you would approach this would be awesome also.
Thanking you in advance and looking forward to your reply.
Candis
I was just going to say how I loved the inside of your Airstream, then thought I'd get funny... I figured you were at someones house. Thanks for the reply! 👍😅
Insurance deductible/excess is NOT an emergency, sure you don't know when you will need to file a claim with your insurer but you know that your car insurance has a $600 excess. Not all insurers will deduct the excess amount from their payout, you may need to pay this money upfront before your insurer will process your claim.
OMG... I hear you! We spent $3k on fixing our roof last year. Emergency fund is #bae, LOL...
Principles of Increase for real though! You’re typically already stressing in an emergency, the last thing you need is money stress Togo along with it!
no house, no pets, no kids, no vehicle, thank goodness!
Stefanie O'Connell hahaha well your emergency Money looks very different than mine 😂
Thank you!
Glad it was helpful for you Hugo!
Thanks to you for watching and commenting my man!
i only have an ermergency FUNd account...
haha, is that for when it's an emergency to go have fun?😂