Another good video. As someone who remembers Andrew in Homestead, FL, some of us might be better planning for hurricane than a rainy day. In those emergencies, you have to be ready to move, find another place to live, work, and play for years.
"Opportunity fund" is a perfect way of putting it! That's where we are, and it's a joy. As Ramsey oft puts it, "If you don't have an emergency fund, you're inviting Murphy (Murphy's Law) into your house." And, like you said, with a stout fund and NO debt, we can act as aggressive panthers pouncing on fun deals, trips, experiences.
For our emergency fund we keep a minimum balance with our bank ($5k) that gives us no banking fees and a great cash back credit card. The return in benefits for us for keeping the 5k is around 4%. If we ever needed to get into this fund, we would just downgrade our plan/card.
AcerbusGaming If we ever need more money than we can safely withdraw or if the market were to crash or something, we'd just find work to cover the difference. It just doesn't make sense for us to continue to work longer, just to avoid the slight chance that we might have to work a little longer. Does that make sense?
Mike and Lauren Yes, it just seems weird to think that someday maybe 20 years later that you would have to go back to work, and you might forget how to do your job. Like, I'm going to be an accountant soon and I might forget how to do accounting if I go 20 years without it.
AcerbusGaming I think we'd be looking more at a 5 year timeline. If our net worth isn't continuing to rise after retirement then we did something wrong. Also keep in mind, we'd be gaining new marketable skills in retirement, not losing them. We probably woudn't do the same job as before, it might be boat repair (after years of fixing our own boat), or video marketing consulting, or whatever hobbies we pick up.
My emergency fund is one of my biggest questions heading into early retirement. I now have at least 9 months of my "needed" expenses, but more like 6 months "living" expenses. Do you save for how you are living now or how you would live if you found yourself in an unemployed situation? How much do I need to keep in there and could I bump that back to buy a Roth IRA? You can see all the questions I have regarding this subject.
Pidasian Hippie At the end of the day, an emergency fund needs to make financial sense but also emotional sense. I would personally say 9 months "needed" expenses is pretty conservative mathematically, but if it helps you sleep at night to each his own.
My wife and I both work, use cash back credit cards for the 30 day interest free float and our expenses are below $27,000 per yer. We only keep about $1,000 for an emergency fund. That way the bulk of our 75% gross savings rate can be put to work earning money through investments. Living well below your means is the key to large safety margins and monthly positive cash flow. :)
Binbale Bardac Agreed. Saving 75% of your income, you could save a years worth of expenses in just 4 months. Even with 2 weeks notice you could save for a month and a half. With that kind of margin, big emergency funds become less necessary.
I just discovered your channel. I like it a lot but... (brace for criticism) please consider not using some language that would prevent me from listening to your videos when little ears are around (such as S*%t.
I think I just made that 10,000 subscribers for you guys :D Congratulations guys, and keep up the great work! Thanks for the videos.
***** Thank you! for watching! I think you might be right about being number 10k :)
Another good video.
As someone who remembers Andrew in Homestead, FL, some of us might be better planning for hurricane than a rainy day. In those emergencies, you have to be ready to move, find another place to live, work, and play for years.
Ta Ali As a west coast Floridian, we've been very lucky in that department.
good advice for everyone, nice work kids!
Love your videos Mike and Lauren!!! You guys are soo inspirational and motivating!!!! 💝💝💝
"Opportunity fund" is a perfect way of putting it! That's where we are, and it's a joy.
As Ramsey oft puts it, "If you don't have an emergency fund, you're inviting Murphy (Murphy's Law) into your house."
And, like you said, with a stout fund and NO debt, we can act as aggressive panthers pouncing on fun deals, trips, experiences.
Kevin R. I hereby call this meeting of the "Penny Pinching Pouncing Panthers" to order!
The intro is so cute!
For our emergency fund we keep a minimum balance with our bank ($5k) that gives us no banking fees and a great cash back credit card. The return in benefits for us for keeping the 5k is around 4%. If we ever needed to get into this fund, we would just downgrade our plan/card.
will you ever touch the principle, when you retire? Say you needed $5k more then the 4% return you were taking out per year.
AcerbusGaming If we ever need more money than we can safely withdraw or if the market were to crash or something, we'd just find work to cover the difference. It just doesn't make sense for us to continue to work longer, just to avoid the slight chance that we might have to work a little longer. Does that make sense?
Mike and Lauren Yes, it just seems weird to think that someday maybe 20 years later that you would have to go back to work, and you might forget how to do your job. Like, I'm going to be an accountant soon and I might forget how to do accounting if I go 20 years without it.
AcerbusGaming I think we'd be looking more at a 5 year timeline. If our net worth isn't continuing to rise after retirement then we did something wrong.
Also keep in mind, we'd be gaining new marketable skills in retirement, not losing them. We probably woudn't do the same job as before, it might be boat repair (after years of fixing our own boat), or video marketing consulting, or whatever hobbies we pick up.
Great response. No need for retirement to be THE END. It's merely the beginning to an encore career.
My emergency fund is one of my biggest questions heading into early retirement. I now have at least 9 months of my "needed" expenses, but more like 6 months "living" expenses. Do you save for how you are living now or how you would live if you found yourself in an unemployed situation? How much do I need to keep in there and could I bump that back to buy a Roth IRA? You can see all the questions I have regarding this subject.
Pidasian Hippie At the end of the day, an emergency fund needs to make financial sense but also emotional sense. I would personally say 9 months "needed" expenses is pretty conservative mathematically, but if it helps you sleep at night to each his own.
That's the thing. It isn't an emotional deal for me at all. I have just been doing what I was "supposed" to do.
My wife and I both work, use cash back credit cards for the 30 day interest free float and our expenses are below $27,000 per yer. We only keep about $1,000 for an emergency fund. That way the bulk of our 75% gross savings rate can be put to work earning money through investments. Living well below your means is the key to large safety margins and monthly positive cash flow. :)
Binbale Bardac Agreed. Saving 75% of your income, you could save a years worth of expenses in just 4 months. Even with 2 weeks notice you could save for a month and a half. With that kind of margin, big emergency funds become less necessary.
I just discovered your channel. I like it a lot but... (brace for criticism) please consider not using some language that would prevent me from listening to your videos when little ears are around (such as S*%t.