Great advice Kate , my parents always taught me to have a min 1000 buffer in my account,and not to dip below 1000 if possible. Plus a savings fund🌟K squad rocks🌟
I am older than most of your Ksquad members but i love you message. I keep $3,000 buffer in my checking account. I maintain a checking account ledger and dont even add it in the total. My bills are probably bigger, so an accidental double mortgage payment would be a big surprise.
Wow! I had a budget buffer and did not realize it. On my budget, I entitled it "Short term savings." I only use it when there is a need to help out one of my line items such as repairs to house, car, vet and etc. My other savings account is entitled "long term savings" which would be used in case of a job loss and etc. Thanks for sharing and now I feel great about my budget. Keep up the good work!
Oh wow! Several months ago, I set up a secondary savings account to which I was adding the overages from the budget. That’s so exciting to know that I can officially call this my Buffer Fund!
Yes please to the house repayment update! Would love to also hear about: -how mortgages work -how long the term should be (15, 20 or 25 years?) -how early repayment charges work -is it better to lock the interest rate in for a long time - like 10 years? -does credit score affect the interest rate available? Any educational series around mortgages, house repayments... I have a lot to learn fast as about to buy a home!
I wish I would have put this concept into place sooner. For me personally this makes so much more sense than having 75 different sinking funds and not knowing how much to put in each one etc etc. I know some people love their sinking funds and it works awesome for them, but the budget buffer has saved my sanity lol thanks Kate! Great video as always. And the intro was… 👌🏻🤣💕
I definitely added this to my goals. At this time I'm still working on increasing my emergency fund to 6 months and paying off my debt. I have managed to save $200 in my regular checking as a "buffer" but my goal is to have a full month of income in there as my buffer. This is great advice and thank you for sharing.
Thank you again Kate! I am feeling that minimalism is helping me safe money. It's all those little things that add up for me. With that in mind, only buying what I need, and buying second hand, I was able to only spend 1/3rd of my last work pay and save the rest.
Yes🕯️ for bugetting and budgetbuffer!!!💰 (and emergencyfund and a couple of sinkingfunds it makes it spotlight clear where I am for me) sounds complicated in the beginning but ITS EASY ONES YOU START. GIVE IT A GO STARTING TODAY!! 😃 YOU CAN DO THIS👍 Hi Kaden have a great weekend with your mum and buns and Mr hannum. 🍦Hopefully it's I cream weekend kaden😎
Mr. Hanum, Buns and great financial advice?! Who could ask for anything more 🙂 My budget buffer is my Cat fund. I save a certain amount each month in case Jimi gets sick and needs a vet.
Totally agree this is an important topic that isn't talked about enough! Love the budget buffer and you introduced me to it :) Would love to see more videos on this Sorry for so many comments. But please could you do a video on having patience while waiting for savings to grow :) Hope you and your family are well Kate. Thanks as ever for putting new content out that helps!
Morning Kate! This was a timely video for me. I had 3 unexpected bills in June. Had to dip into savings. They all totaled about $500, and while I had the money in savings - keeping a 1000 balance in checking sounds like a good idea right now. PS I have a sinking fund in savings and also an emergency fund. Sadly - my yarn buying days are on hold for now but I have so much it won't hurt too bad :-). ALSO on the junk food side of things - frozen grapes are so good to munch on in the summer time. Been buying grapes and ditching the ice cream.
We are currently on a debt free journey!! We do have our 1000.00 saved but I love the idea of the budget buffer because while doing a zero based budget makes sense. I get fearful of the checking account not having enough money in it. I am so glad I found this video and I love your content. I have learned so much!! Thank you!! Trying to pay off debt is so much easier when we have a good support system which we are still struggling with but I am glad to have it here.
I do have a buffer, but not as large as yours because I also have sinking funds that can be dipped into. That just works for me, but there are so many ways to arrange it, we take what works for us from the different teachers and then make it our own. Great video
Since your last video on having a buffer, I have been working on my buffer on my checking account! It has gotten me out of some embarrassing moments when at a restaurant or when purchasing groceries! I love to have that cushion in my account! Thank you Kate for that! Have an awesome frugal Friday! I am actually working on a upcoming video about having a buffer! And I Will put you in the description on that video! And in two weeks, I have a tracking video also that I will put you in the description! Because you taught me too do the steps in my finances!
Thank you K-Squad Queen. 👑❤👑. Look forward to each and everyone of your videos. Following your advice (tailored to what works best for my situation) brings a peace and security that is worth billions to me! What a great way to live! 👏👏👏
I have a budget buffer AND sinking funds. Sinking funds are good for larger expenses that you know are coming up, or saving for let's say a nice vacation or something. But my BB is not huge or anything, it's just big enough that I feel there is some room for anything "extra" whether that is an appliance that breaks and needs to be repaired or replaced, or friends inviting me to go on an ad hoc weekend getaway. It just provides that flexibility of taking things as they come, which is nice.
I have health insurance for my cat with Trupanion (not sponsored) It's saved me thousands of dollars, not kidding. It's worth the monthly payment. Their service has been incredible. We have used them for 4 of our cats and we've had an excellent experience with them. No issues. Sending healing thoughts for Buns! Budget Buffer: heck yes, I have this and glad I do. It gives such peace of mind. Kate: you are looking extra radiant today, you shine from the inside out. Thank you for sharing all that you do with us!
Just started watching you a few weeks ago. I love this video. I listen to Dave Ramsey but needed to hear this video knowing it can be so doable if you follow his guidelines but do it your own way. Great Job!
The coke savings you mentioned, don't buy for awhile and save that money is a great tip for people to follow. Many months back I started on an 'eat better' journey, the money I saved not buy pop (that was the biggest bad habit), and chips and junk, saved me a fortune. As for Dave Ramsey, I'm not a fan for many reasons but I do believe he is a great place for people to start but definitely tweak it to fit your own lifestyle. Great video Kate!
A budget buffer is a great concept! I have a mix between sinking fund and budget buffer in my checking account. At the end of each year I look back at my monthly budgets and add up all not regular but expected expenses like f.e. car inspection. That’s the minimum amount I need to have in my budget buffer for the next year. I will also use it for small unexpected expenses but only, when I can’t pay them out of my regular budget. Also I practice a zero based budget, so if there is after savings and expenses money left, it will automatically go into my budget buffer. Most of the time at the end of the year my budget buffer has still a good amount of the initial money, so I don’t have to rebuild it from zero for the next year. Works great for me! And yes please, I would love to hear about the progress on paying of your mortgage early! 😊
Wow! I am still reeling from the cost of Buns' vet visit! Of course, you have to pay it because he's family, but that is a lot of money. (Mine are insured but I still pay something - it's just that the biggest expenses are, hopefully, covered. When you're on a low income, pet insurance is sensible because paying off a really huge bill in the thousands might be impossible, and you'd already be stressed enough without worrying about that.) Thank goodness for a budget buffer! I do have a little something tucked away but I live on a low income, so it's necessarily a low buffer. Still - way, way better than even only 5 years ago when I had several debts to clear! I would so much love to know how things are going with your plans to pay off the house earlier - I bet you've already shaved off a good amount of time - every bit will count! I think you've recently had an anniversary of buying it - wouldn't it be great to share with us every year on the anniversary how much further you've got with shaving time off your mortgage and paying the house off? (I don't mean in detail, obviously, there are some things better kept private, even on a channel dealing with finance!) Some mortgage providers will give you a line graph format that shows you two lines: where you would have been if you'd repaid the mortgage as planned, and how much less there is now. As time goes on, you can see how much quicker you'll be paid off as the gap between the two lines widens! PS. It was lovely to see the Handsome Hanum this time, even if that expression on his face told us he was suffering bravely because he doesn't love the camera like You Know Who does! Thanks, Kate - another great Friday video. You're really developing your unique brand at the moment and I like it a lot! Sorry, I've written another essay, haven't I? LOL Have a good weekend 😀
Amanda, you KNOW I LOVE reading your comments! And you are so right. I moved in 2 years ago and my very first payment was paid on August 1, 2020, so I'm thinking within the month I should do that update to give us a clear view of the 2 year mark, how much I've been able to chip away by making extra principal payments when I could. OMG Mr. Hanum! My sweet quiet boy was like..MA! NO THANKS! THIS CAMERA IS NOT FOR ME! Sometimes he's all lovey and weaving through my ankles so I THINK he wants to come up...but...not usually! :) But when the camera is not on, omg he's a teddy bear cuddler!!! The sweetest!!!! Have an amazing weekend Amanda! I adore you! THANK YOU!!!
Happy frugal Friday 👍 Budget Buffer 🙌 Reading through the comments looks like there's interest in your mortgage update video 😊 Hi Kaden, Mr Hanum & Buns I'm glad is doing well 😻
We live check to check seriously. No car payments but we do have a lot of expenses. We had 5k in savings, but have recently dropped to 4k since we had some trips for our son to take that had to be paid for and we had an extra person join the family in April. Anyway.. I love the buffer and hate to let our checking ever go below 1k. I get anxious when it does. The recent inflation of everything is hitting us hard. I'm working on a new plan to get us out of debt. Not counting the house we have just under 12k of debt. I am paying weekly payments on some and monthly payments on others. I love watching you and appreciate your ability explain how and why you do things the way you do. Our HVAC replacement is financed at 9.9% with a maturity date of 3/17/2031 and we owe $6,079 to them. We only pay $100 a month and it puts $49 to principal and $51 to interest(my recent statement). So should we tackle that one debt with a vengeance or since it is a larger $ amount than our other debts (which are mostly interest free consolidated credit card debt)do we pay them off first (while there's no interest) and then snowball the HVAC in last? At that time we can throw all the other payments we've been making at it. Appreciate your advice. I'm not so great with the numbers. Thank you!
Social security is paid on a certain day of the week - say the second Wednesday every month. That would make November to December have five weeks instead of four. You don’t get an extra weeks money so you have to stretch your money to cover that extra week. Budget buffer to the rescue!!! Very thankful for any and all extra monies to put in the buffer!!😊
Yes definitely a house update. We are almost there ourselves to start paying extra on our home. Definitely going to put a budget buffer in place I think this will help alleviate some stress.
Yes and no I have a small baby emergency fund for things that not planned for. Would love a pay off house update video. I needed to buy a shed at my new house. So I'm working on paying that off. I do have a little extra food and house hold supplies for just in case.
Thanks Kate. I love to see all your family in this video. 💌Wao a good advice today about the Budget buffer I like the concept. I appreciate the quick tips to build it 👍 Happy frugal Friday!
I've binge watched a lot of your videos lately so I'm not sure which one I got this from but I decided to reduce my grocery budget because I can and why not if it will help me save $? I actually had a preconceived idea about some stores like Aldi but I went after work and bought a few things, especially the 10lb bag of chicken quarters for .69lb I heard about somewhere. This was a big shift from the boneless skinless chicken I usually get at Costco. This weekend I made a big pot of chicken and rice soup, a new chicken & potato recipe and chimichurri chicken with chimichurri sauce that needed to be used up. Most will be portioned and some frozen for me and to bring to Dad this weekend. I always cook from my pantry but this was a new way of thinking for me. Thanks!
You are so welcome! Oh wow, I loved reading this Lynne! So glad you were inspired to try something new and it went well! I'm so glad you're here! Have an amazing week. Hope to see you Friday for the new video!
I have sinking funds in a high interest savings account. I have a (depeleted) emergency fund that I am looking to replenish, also in a high interest savings account. Both are at another bank. I am lucky if there is 100 left in my chequing account before payday, but: CHALLENGE ACCEPTED!! Would you recommend replenishing my emergency fund first or fill the Budget Buffer? And yes, I would like to hear a mortgage update. Keep up the good work Kate and hugs to Kaden.
That kind of Budget Buffer would have saved me when Netflix withdrew from my checking account and I didnt know that a Debit card allows withdraws even when the account is empty.
I'm retired so on a set income which makes it harder to find extra funds. I'm going to do No Spend (Discretionary spend) in August, November and February which will give me $1500 buffer.
I never knew this had a name! But it’s nice to have extra just in case. I only keep mine til the next payday then I just transfer to my savings account. I like the idea of being debt free have just paid off all my credit card debt and auto loan. Although since I’m in my fourties I don’t think it is wise to pay off my student loans early since I’ll lose so much time investing. Even considering you can put more money aside later-you may not have enough years to make up the time lost.
I felt a bit guilty about the $20k I had in my checking account because it wasn’t in some high yield investment, but I too liked having a buffer against disaster that didn’t involve my saving account. I was very happy for my buffer last year when I was diagnosed with breast cancer. My insurance has a $2000 dollar deductible and only pays 80% after that. Three surgeries and 44 radiation treatments later, and so many, many scans, ultrasounds, mammograms, etc. I can’t even keep track, my buffer is smaller, but my emergency savings are untouched.
Oh my goodness Cathy! I'm SO SO happy you had that 20k when you needed it! Are you fully recovered? Thank you so much for watching and sharing with us!!! So glad you're here with us Cathy.
Thanks. Fully recovered physically and financially. Been using the Every Dollar budget app for about 4 months now. My ‘buffer’ has turned into sinking funds, but it’s just semantics 🤷♀️
Very interesting video. I'm always thinking about where to assign my money and it's good to get your perspective. I have a couple of sinking funds, which has been working for me. And this year for the first time I've shaved off $2k for an emergency fund. What you call a budget buffer I would call cash flow, but mine ebbs and flows since I tend to put as much as I can into retirement each month and let my bank balance go right down. I have two of my three sinking funds close to hand so I have $1,200 available if necessary as well as my emergency fund and a trip fund in another bank so I have that if necessary as well. So I guess I do have a reasonable total buffer, just not in my chequing account. I'm really careful with my chequing account. I don't think I've ever been overdrawn in my life. Sorry, this was kind of rambling. Just thinking aloud with like-minded souls. :)
Hi Kate, I’d love to watch your “why I’m not paying for college “ video…. But I get a message that I have to “join” …. I do subscribe to your channel but is there something else I have to do to view this video?
When you use $ from the budget buffer do you reimburse it or just adjust the balance? I have always kept a hard deck of $1000 in my checking - same concept, just not the same value as yours.😉
Hi Kate! How long did it take you to save a budget buffer and emergency fund? Months? Years? I am just starting off on my debt free journey and some days it really feels like I’ll never get there. 😩
You get to decide how long it will take. Get a side gig, work extra hours at work, cut down on eating out, cut cable, make your lunch and bring it to work, meal plan etc etc
Hi Heather! Okay..hmmm, so since I was trying to pay off the car at the time...I guess it took me 3 years to get my buffer and the 20k, so I think I was squirreling away 10k a year at the time, roughly. Which MEANS...this video will be super helpful if you haven't seen it yet! Check this out Heather, : th-cam.com/video/-Xn1RMkndhE/w-d-xo.html.
Kate, I know your a dancer/choreographer..my daughter has been taking dance lessons 1x a week and it's been affordable about 55-100 a month depending on recital/uniform fees. Now she just got into competitive dance ! Do u have any experience with that ? It's a newer school and monthly fee WAS 250 a month unlimited classes + choreographer fees+ costume+ competition fees+ $400convention in .Orlando... etc. Adds up. Our family decided we will do it this year and see how it goes .. Btw as bad as it sounds I did express I'm not sure if it fits my budget and dance teacher lowered it to $200 a month 😅 I was happy and accepted but this is going to add up especially since she is in 3 dances ... I just tell myself this will be worth the experience for her. Did u ever do competitive dance?
Hi Melanie! HECK YEAH! I'd give it a try and see how she likes it. I choreograph for competition numbers, but didn't get to do it as a kid! That wasn't a thing around here when I was a kid, but I wish it had been! It's really fun if everyone can keep a level head about it and see these comps as another tool to learn and perform. LOVE IT!!!!! Wishing her the best year ever!!!
Please forgive me if you have answered this before….when you use your budget buffer, do you pay it back right away to always keep a certain dollar amount?
This is great but you are talking about numbers I could never achieve 😔. I’m trying to save up three months worth of emergency living expenses in case one of us cannot work or looses their job. I guess that’s my buffer but it will take me years to reach my goal.
8:10 Is it worth putting 15% of salary into a pension in your 20s? What if we end up putting too much in and don't get to claim enough of the pension for the time we will be retired?
This is kind of a buffer, but I try not to leave home without at least 20.00 in cash. In Canada today one our cellphone providers went down. So, none of the businesses were using debit or credit cards. Among other things that came up. Needless to say people were in for a shock when they went to buy things. . At least have some money you can at least buy milk or other necessities.
I've just had $1000 in my buffer, but I'm going to raise it. 👍🏼
Great advice Kate , my parents always taught me to have a min 1000 buffer in my account,and not to dip below 1000 if possible. Plus a savings fund🌟K squad rocks🌟
LOVE THIS Julie!
This is what I do as well.
I am older than most of your Ksquad members but i love you message. I keep $3,000 buffer in my checking account. I maintain a checking account ledger and dont even add it in the total. My bills are probably bigger, so an accidental double mortgage payment would be a big surprise.
Wow! I had a budget buffer and did not realize it. On my budget, I entitled it "Short term savings." I only use it when there is a need to help out one of my line items such as repairs to house, car, vet and etc. My other savings account is entitled "long term savings" which would be used in case of a job loss and etc. Thanks for sharing and now I feel great about my budget. Keep up the good work!
YASSSS! LOVE THIS KATHERINE!! WAY TO GO!
Oh wow! Several months ago, I set up a secondary savings account to which I was adding the overages from the budget. That’s so exciting to know that I can officially call this my Buffer Fund!
YASSS!!!!
Yes please to the house repayment update!
Would love to also hear about:
-how mortgages work
-how long the term should be (15, 20 or 25 years?)
-how early repayment charges work
-is it better to lock the interest rate in for a long time - like 10 years?
-does credit score affect the interest rate available?
Any educational series around mortgages, house repayments... I have a lot to learn fast as about to buy a home!
I wish I would have put this concept into place sooner. For me personally this makes so much more sense than having 75 different sinking funds and not knowing how much to put in each one etc etc. I know some people love their sinking funds and it works awesome for them, but the budget buffer has saved my sanity lol thanks Kate! Great video as always. And the intro was… 👌🏻🤣💕
I totally agree! I like it simplified but effective. (and thank you for the intro compliment! 😅😊) Have an awesome weekend Rachael!
@@KateKaden thanks Kate! you too! 😊
I definitely added this to my goals. At this time I'm still working on increasing my emergency fund to 6 months and paying off my debt. I have managed to save $200 in my regular checking as a "buffer" but my goal is to have a full month of income in there as my buffer. This is great advice and thank you for sharing.
@lissettemendez7618 well done on the $200 as at 28/02/24 how's your budget buffer, have you saved up one month?
Yes, would love to hear about how you're shaving off years of paying off your house!
You got it! I will work on that for you soon!
Thank you again Kate! I am feeling that minimalism is helping me safe money. It's all those little things that add up for me. With that in mind, only buying what I need, and buying second hand, I was able to only spend 1/3rd of my last work pay and save the rest.
I do the same thing. I didn't know there was a name for it, but I love it! Great frugal minds think alike. Boom 💥
YASSS! Thanks Michele!!!!
Yes🕯️ for bugetting and budgetbuffer!!!💰 (and emergencyfund and a couple of sinkingfunds it makes it spotlight clear where I am for me) sounds complicated in the beginning but ITS EASY ONES YOU START. GIVE IT A GO STARTING TODAY!! 😃 YOU CAN DO THIS👍
Hi Kaden have a great weekend with your mum and buns and Mr hannum. 🍦Hopefully it's I cream weekend kaden😎
YASSSSS PIGLETS BANK!!!!
Yes early payoff the house would be a great a video.
You got it Gia! I'll work on that for an upcoming video soon!
Mr. Hanum, Buns and great financial advice?! Who could ask for anything more 🙂
My budget buffer is my Cat fund. I save a certain amount each month in case Jimi gets sick and needs a vet.
Totally agree this is an important topic that isn't talked about enough! Love the budget buffer and you introduced me to it :) Would love to see more videos on this
Sorry for so many comments. But please could you do a video on having patience while waiting for savings to grow :)
Hope you and your family are well Kate. Thanks as ever for putting new content out that helps!
Morning Kate! This was a timely video for me. I had 3 unexpected bills in June. Had to dip into savings. They all totaled about $500, and while I had the money in savings - keeping a 1000 balance in checking sounds like a good idea right now. PS I have a sinking fund in savings and also an emergency fund. Sadly - my yarn buying days are on hold for now but I have so much it won't hurt too bad :-). ALSO on the junk food side of things - frozen grapes are so good to munch on in the summer time. Been buying grapes and ditching the ice cream.
YASSSS!!!!! Way to go Donna!!!!
We are currently on a debt free journey!! We do have our 1000.00 saved but I love the idea of the budget buffer because while doing a zero based budget makes sense. I get fearful of the checking account not having enough money in it. I am so glad I found this video and I love your content. I have learned so much!! Thank you!! Trying to pay off debt is so much easier when we have a good support system which we are still struggling with but I am glad to have it here.
LISA!!! I am cheering you on!!! Picture me with Pom poms!!! Seriously, so proud of you!!!! 🎉🎉🎉
@@KateKaden thank you!! I watch your videos everyday to keep me on track!! I have learned so much!!
I do have a buffer, but not as large as yours because I also have sinking funds that can be dipped into. That just works for me, but there are so many ways to arrange it, we take what works for us from the different teachers and then make it our own. Great video
LOVE THIS!
Since your last video on having a buffer, I have been working on my buffer on my checking account! It has gotten me out of some embarrassing moments when at a restaurant or when purchasing groceries! I love to have that cushion in my account! Thank you Kate for that! Have an awesome frugal Friday! I am actually working on a upcoming video about having a buffer! And I Will put you in the description on that video! And in two weeks, I have a tracking video also that I will put you in the description! Because you taught me too do the steps in my finances!
YASSSS MARINO!!!! LOVE THIS!
Yes, house payoff update would be good.
You got it! I'm working on that for the future.
Love a house pay off update! Great topic! Buffer is yes amazing like a soft cushion! 🌻 💐🌼💕🌻
Please update on your mortgage progress and also of you set aside a certain percentage of your home value for maintenance/home repairs monthly
Thank you K-Squad Queen. 👑❤👑. Look forward to each and everyone of your videos. Following your advice (tailored to what works best for my situation) brings a peace and security that is worth billions to me! What a great way to live! 👏👏👏
YASSS Judy! This makes me so happy! Thanks for watching and sharing with us! HAPPY FRUGAL FRIDAY!
I really believe in this budget buffer it working wish I know of this before
I have a budget buffer AND sinking funds. Sinking funds are good for larger expenses that you know are coming up, or saving for let's say a nice vacation or something. But my BB is not huge or anything, it's just big enough that I feel there is some room for anything "extra" whether that is an appliance that breaks and needs to be repaired or replaced, or friends inviting me to go on an ad hoc weekend getaway. It just provides that flexibility of taking things as they come, which is nice.
Love this Hugo! Thanks so much for watching and sharing with us!
I have health insurance for my cat with Trupanion (not sponsored) It's saved me thousands of dollars, not kidding. It's worth the monthly payment. Their service has been incredible. We have used them for 4 of our cats and we've had an excellent experience with them. No issues. Sending healing thoughts for Buns!
Budget Buffer: heck yes, I have this and glad I do. It gives such peace of mind.
Kate: you are looking extra radiant today, you shine from the inside out. Thank you for sharing all that you do with us!
OOOOh, thanks for the recommendation!
Oh and thank you so much for your kindness Doris! Means a lot! THANK YOU!
Good morning Kate. Today is payday - a fresh start. This video is just what I needed. Thank you!
Good morning Katie! LOVE PAYDAY!!! YASSS!!!!!!
Love the budget buffer idea and tips on how to build it. Thanks Kate.
You are very welcome Corrine! Thanks for watching!
Would love a house Payoff update 😊 Congrats on all of your hard work!!
Ok, just watched replay of Chipotle story and got my Buns update. 😀❤️
Happy buns is doing well❤️❤️
Thank you tons! Everything feels wrong when the pets are not their best.
@@KateKaden yes it does. Our pets are precious to us ❤️❤️
Yes I’d love to hear your house payoff updates!! I’m working on paying our house early too 😃
YASSS SHERRY!!!
Buns is back yall 😭😭💕
Buns loves the KSquad!
I have started a budget buffer, currently $1000. However, I’m going to grow it now. I loved the advice thanks Kate.
Just started watching you a few weeks ago. I love this video. I listen to Dave Ramsey but needed to hear this video knowing it can be so doable if you follow his guidelines but do it your own way. Great Job!
Thank you so much Joanne! I'm so glad you're here!
Kate, love the 3 month budget buffer idea 💡 & tips. I don't have one now & want to create one in the future.
As usual Kate, great, honest, advice. Thank you so much Kate ❤️
Thank you Gillian!!! Appreciate you so much!
I’ve never heard of a budget buffer before but I love the idea! Gonna implement this concept. And glad to see Bunz doing well.
Jennifer, I hope you enjoy your new budget buffer! Thank you about Buns!!!! My sweet boy....
So happy Buns is feeling better ❤️. Would love an update of the house payments and how many years you shaved off. Hi Kaden
YOU GOT IT TONI! and thank you!!!!!!!!
This was great! So helpful. I’m going to watch a few more times. Thank you
Jeri, I'm so glad it was helpful!
Off topic but I wanted to say that the top you have on looks great on you.
Thank you so much!!!!!
Good tips! I will start a budget buffer!!!
YASSSS!!! Way to go Sharon!
Hi Mr Hanam and Buns! Aw so cute!
😻😻
Thank you dearly 💛 💖 ♥
You are very welcome Maria! I'm so glad you are here!
Great idea 💡 kate 🌸🌸
Thanks so much Arlette!
Yes indeed I can do with a budget buffer. Here we go 2023
The coke savings you mentioned, don't buy for awhile and save that money is a great tip for people to follow.
Many months back I started on an 'eat better' journey, the money I saved not buy pop (that was the biggest bad habit), and chips and junk, saved me a fortune.
As for Dave Ramsey, I'm not a fan for many reasons but I do believe he is a great place for people to start but definitely tweak it to fit your own lifestyle.
Great video Kate!
Thank you so much Teresa!
A budget buffer is a great concept! I have a mix between sinking fund and budget buffer in my checking account. At the end of each year I look back at my monthly budgets and add up all not regular but expected expenses like f.e. car inspection. That’s the minimum amount I need to have in my budget buffer for the next year. I will also use it for small unexpected expenses but only, when I can’t pay them out of my regular budget. Also I practice a zero based budget, so if there is after savings and expenses money left, it will automatically go into my budget buffer. Most of the time at the end of the year my budget buffer has still a good amount of the initial money, so I don’t have to rebuild it from zero for the next year. Works great for me!
And yes please, I would love to hear about the progress on paying of your mortgage early! 😊
Loved reading this Lola. Thank you so much for sharing! And I WILL make a video soon on the mortgage payoff progress. Thanks so much for being here!
Great info as always Kate! I’d love to hear about your mortgage payoff and how you are going about it.
Awesome Cheryl! I will work on that for ya! So glad you're here!
Just this past week thanks to my additional job, I now have a 3 month emergency fund! Working on the next goal of a 6 months!
Wow! I am still reeling from the cost of Buns' vet visit! Of course, you have to pay it because he's family, but that is a lot of money. (Mine are insured but I still pay something - it's just that the biggest expenses are, hopefully, covered. When you're on a low income, pet insurance is sensible because paying off a really huge bill in the thousands might be impossible, and you'd already be stressed enough without worrying about that.) Thank goodness for a budget buffer! I do have a little something tucked away but I live on a low income, so it's necessarily a low buffer. Still - way, way better than even only 5 years ago when I had several debts to clear!
I would so much love to know how things are going with your plans to pay off the house earlier - I bet you've already shaved off a good amount of time - every bit will count! I think you've recently had an anniversary of buying it - wouldn't it be great to share with us every year on the anniversary how much further you've got with shaving time off your mortgage and paying the house off? (I don't mean in detail, obviously, there are some things better kept private, even on a channel dealing with finance!) Some mortgage providers will give you a line graph format that shows you two lines: where you would have been if you'd repaid the mortgage as planned, and how much less there is now. As time goes on, you can see how much quicker you'll be paid off as the gap between the two lines widens!
PS. It was lovely to see the Handsome Hanum this time, even if that expression on his face told us he was suffering bravely because he doesn't love the camera like You Know Who does! Thanks, Kate - another great Friday video. You're really developing your unique brand at the moment and I like it a lot! Sorry, I've written another essay, haven't I? LOL Have a good weekend 😀
Amanda, you KNOW I LOVE reading your comments! And you are so right. I moved in 2 years ago and my very first payment was paid on August 1, 2020, so I'm thinking within the month I should do that update to give us a clear view of the 2 year mark, how much I've been able to chip away by making extra principal payments when I could.
OMG Mr. Hanum! My sweet quiet boy was like..MA! NO THANKS! THIS CAMERA IS NOT FOR ME! Sometimes he's all lovey and weaving through my ankles so I THINK he wants to come up...but...not usually! :) But when the camera is not on, omg he's a teddy bear cuddler!!! The sweetest!!!!
Have an amazing weekend Amanda! I adore you! THANK YOU!!!
Happy frugal Friday 👍 Budget Buffer 🙌 Reading through the comments looks like there's interest in your mortgage update video 😊 Hi Kaden, Mr Hanum & Buns I'm glad is doing well 😻
We live check to check seriously. No car payments but we do have a lot of expenses. We had 5k in savings, but have recently dropped to 4k since we had some trips for our son to take that had to be paid for and we had an extra person join the family in April.
Anyway.. I love the buffer and hate to let our checking ever go below 1k. I get anxious when it does. The recent inflation of everything is hitting us hard. I'm working on a new plan to get us out of debt. Not counting the house we have just under 12k of debt. I am paying weekly payments on some and monthly payments on others. I love watching you and appreciate your ability explain how and why you do things the way you do.
Our HVAC replacement is financed at 9.9% with a maturity date of 3/17/2031 and we owe $6,079 to them. We only pay $100 a month and it puts $49 to principal and $51 to interest(my recent statement). So should we tackle that one debt with a vengeance or since it is a larger $ amount than our other debts (which are mostly interest free consolidated credit card debt)do we pay them off first (while there's no interest) and then snowball the HVAC in last? At that time we can throw all the other payments we've been making at it.
Appreciate your advice. I'm not so great with the numbers. Thank you!
I know it was a long post... hope someone can offer advice to my debt dilemma.
Great video as always Kate! Can you please give an update on how Buns is responding to his new medication. Thanks!❤️
Social security is paid on a certain day of the week - say the second Wednesday every month. That would make November to December have five weeks instead of four. You don’t get an extra weeks money so you have to stretch your money to cover that extra week. Budget buffer to the rescue!!! Very thankful for any and all extra monies to put in the buffer!!😊
Yes Kate, the budget buffer has helped me out more than once. I am glad to hear that your little man is doing well!
Thank you so much Tina!!!
And these are great tips, thank you! Love your channel😊🌟
Thank you so much Berlin Miller! I'm so glad you are here!!!!
Wonderful! Wonderful! And Wonderful Content. Thank you!
I love that you “squirrel-Ed” haha
LOL!!!! That's one of my fav terms!
Budget buffer in checking account and Emergency found in savings account ✌️
Yes definitely a house update. We are almost there ourselves to start paying extra on our home. Definitely going to put a budget buffer in place I think this will help alleviate some stress.
Good Advice, I have sinking funds & savings account vs budget buster
YASS! AWESOME LEXI!
I love that DR was the commercial before this played lol I had a hard time hitting the “skip” button haha
NO WAY! LOL! Hi Amy! So glad you're here!
Starting my budget buffer in Colombia
Yes and no I have a small baby emergency fund for things that not planned for.
Would love a pay off house update video.
I needed to buy a shed at my new house. So I'm working on paying that off.
I do have a little extra food and house hold supplies for just in case.
Great advice!!!🤩🥰🤓
Thank you Helanie! HAPPY FRUGAL FRIDAY! So happy to see you!!!! Hope you have a great weekend.
Since paying off your car, have you started or will you start a separate fund to buy a new or used car in the future?
Thanks Kate. I love to see all your family in this video. 💌Wao a good advice today about the Budget buffer I like the concept. I appreciate the quick tips to build it 👍 Happy frugal Friday!
Thank you so much Mar C! So glad you liked it. So happy to see you🥰
Love this!
Thanks so much for watching!
have an emergency fund and sinking fund ( buget buffer ) thanks to extreem frugal and minimal lifestyl; no headache anymore
I've binge watched a lot of your videos lately so I'm not sure which one I got this from but I decided to reduce my grocery budget because I can and why not if it will help me save $? I actually had a preconceived idea about some stores like Aldi but I went after work and bought a few things, especially the 10lb bag of chicken quarters for .69lb I heard about somewhere. This was a big shift from the boneless skinless chicken I usually get at Costco. This weekend I made a big pot of chicken and rice soup, a new chicken & potato recipe and chimichurri chicken with chimichurri sauce that needed to be used up. Most will be portioned and some frozen for me and to bring to Dad this weekend. I always cook from my pantry but this was a new way of thinking for me. Thanks!
You are so welcome! Oh wow, I loved reading this Lynne! So glad you were inspired to try something new and it went well! I'm so glad you're here! Have an amazing week. Hope to see you Friday for the new video!
Great share! Very helpful for so many!
Thank you for your support Jan. You are the best!
@@KateKaden ❤
Chocolate can’t be without it x
😍
I have sinking funds in a high interest savings account. I have a (depeleted) emergency fund that I am looking to replenish, also in a high interest savings account. Both are at another bank. I am lucky if there is 100 left in my chequing account before payday, but: CHALLENGE ACCEPTED!! Would you recommend replenishing my emergency fund first or fill the Budget Buffer? And yes, I would like to hear a mortgage update. Keep up the good work Kate and hugs to Kaden.
That kind of Budget Buffer would have saved me when Netflix withdrew from my checking account and I didnt know that a Debit card allows withdraws even when the account is empty.
YASSSS Scott!
I've actually got a budget buffer and I do sinking funds. You never know when that forgotten bill etc is going to appear.
I'm retired so on a set income which makes it harder to find extra funds. I'm going to do No Spend (Discretionary spend) in August, November and February which will give me $1500 buffer.
I never knew this had a name! But it’s nice to have extra just in case. I only keep mine til the next payday then I just transfer to my savings account. I like the idea of being debt free have just paid off all my credit card debt and auto loan. Although since I’m in my fourties I don’t think it is wise to pay off my student loans early since I’ll lose so much time investing. Even considering you can put more money aside later-you may not have enough years to make up the time lost.
If anything I have more budget buffer than is best, and would be wise to move some of it into savings. I'll do that now, while I'm thinking about it.
Love it!
I felt a bit guilty about the $20k I had in my checking account because it wasn’t in some high yield investment, but I too liked having a buffer against disaster that didn’t involve my saving account. I was very happy for my buffer last year when I was diagnosed with breast cancer. My insurance has a $2000 dollar deductible and only pays 80% after that. Three surgeries and 44 radiation treatments later, and so many, many scans, ultrasounds, mammograms, etc. I can’t even keep track, my buffer is smaller, but my emergency savings are untouched.
Oh my goodness Cathy! I'm SO SO happy you had that 20k when you needed it! Are you fully recovered? Thank you so much for watching and sharing with us!!! So glad you're here with us Cathy.
Thanks. Fully recovered physically and financially. Been using the Every Dollar budget app for about 4 months now. My ‘buffer’ has turned into sinking funds, but it’s just semantics 🤷♀️
Very interesting video. I'm always thinking about where to assign my money and it's good to get your perspective. I have a couple of sinking funds, which has been working for me. And this year for the first time I've shaved off $2k for an emergency fund. What you call a budget buffer I would call cash flow, but mine ebbs and flows since I tend to put as much as I can into retirement each month and let my bank balance go right down. I have two of my three sinking funds close to hand so I have $1,200 available if necessary as well as my emergency fund and a trip fund in another bank so I have that if necessary as well. So I guess I do have a reasonable total buffer, just not in my chequing account. I'm really careful with my chequing account. I don't think I've ever been overdrawn in my life. Sorry, this was kind of rambling. Just thinking aloud with like-minded souls. :)
Love hearing you think aloud! Thank you Paula! So glad you are here!
Great video Kate! Yes, would love to know how much time you’ve shaved off original mortgage payoff date by applying extra payments! 😃
Awesome! Thanks for being here Barbara!!! I’ll work on that video in the near future.
@@KateKaden ❤️👍🏻
I’d love to know your system and how far you’ve gotten paying down your house. 👍🏻
I don’t know about America but in the uk everything has gone up rediculous how are you coping and what you doing regarding rises costs x
Haha i clicked on this looking to find good budget parts for building my new rifle and stayed for the economics lesson 😂😂
We can't keep extra in our checking. We have to have it in a savings account; we are not to be trusted!
LOL! Tracey, it's so good to know what will work for you and what WON'T! Love it. Thanks for being here!
With Your checking account is it the same account your wages goes into separate to an emergency fund account x
do you have a video on how long it took you to accomplish those? saving, paying off car & 12 month saving.
Hi Daytona! YES🥰 I left a list for ya in the video description to check out:) Hope you enjoy them! ❤️
@@KateKaden ohh okay! thank you. i was commenting while watching. 😅
How do you replenish your budget buffer after you use some of it?
I try to leave at least $100 in my checking account as I always seem to have something come up that wasn’t budgeted for.
Hi Kate, I’d love to watch your “why I’m not paying for college “ video…. But I get a message that I have to “join” …. I do subscribe to your channel but is there something else I have to do to view this video?
When you use $ from the budget buffer do you reimburse it or just adjust the balance? I have always kept a hard deck of $1000 in my checking - same concept, just not the same value as yours.😉
Yes. Would love an update on mortgage payoff
Okay Lee! I'll work on that for the near future!
Hi Kate! How long did it take you to save a budget buffer and emergency fund? Months? Years? I am just starting off on my debt free journey and some days it really feels like I’ll never get there. 😩
Keep tracking so you can see your progress and it will help motivate you 😊
You get to decide how long it will take. Get a side gig, work extra hours at work, cut down on eating out, cut cable, make your lunch and bring it to work, meal plan etc etc
Hi Heather! Okay..hmmm, so since I was trying to pay off the car at the time...I guess it took me 3 years to get my buffer and the 20k, so I think I was squirreling away 10k a year at the time, roughly. Which MEANS...this video will be super helpful if you haven't seen it yet! Check this out Heather, : th-cam.com/video/-Xn1RMkndhE/w-d-xo.html.
@@KateKaden Thanks Kate! I watched the video you linked and can’t believe how little it takes to save $10k a year!!! Thanks for the encouragement!
Kate, I know your a dancer/choreographer..my daughter has been taking dance lessons 1x a week and it's been affordable about 55-100 a month depending on recital/uniform fees.
Now she just got into competitive dance ! Do u have any experience with that ? It's a newer school and monthly fee WAS 250 a month unlimited classes + choreographer fees+ costume+ competition fees+ $400convention in .Orlando... etc. Adds up.
Our family decided we will do it this year and see how it goes .. Btw as bad as it sounds I did express I'm not sure if it fits my budget and dance teacher lowered it to $200 a month 😅 I was happy and accepted but this is going to add up especially since she is in 3 dances ... I just tell myself this will be worth the experience for her.
Did u ever do competitive dance?
Hi Melanie! HECK YEAH! I'd give it a try and see how she likes it. I choreograph for competition numbers, but didn't get to do it as a kid! That wasn't a thing around here when I was a kid, but I wish it had been! It's really fun if everyone can keep a level head about it and see these comps as another tool to learn and perform. LOVE IT!!!!! Wishing her the best year ever!!!
Regarding 9:43, or can you buy candy at the dollar store before you go to the movie theatre and sneak it in in your bag???
Please forgive me if you have answered this before….when you use your budget buffer, do you pay it back right away to always keep a certain dollar amount?
This is great but you are talking about numbers I could never achieve 😔. I’m trying to save up three months worth of emergency living expenses in case one of us cannot work or looses their job. I guess that’s my buffer but it will take me years to reach my goal.
8:10 Is it worth putting 15% of salary into a pension in your 20s? What if we end up putting too much in and don't get to claim enough of the pension for the time we will be retired?
Kate, I don't quite understand. So 3 months in checking is the buffer, and 12 months in savings is emergency? Yes, house payoff update.
Yes! You've got it Julie. That's currently what I do. Okay I will work on a house payoff update soon!!!
This is kind of a buffer, but I try not to leave home without at least 20.00 in cash. In Canada today one our cellphone providers went down. So, none of the businesses were using debit or credit cards. Among other things that came up. Needless to say people were in for a shock when they went to buy things. . At least have some money you can at least buy milk or other necessities.