An Emergency Fund Changes Everything - Dave Ramsey Rant
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- เผยแพร่เมื่อ 25 ก.ย. 2018
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Just a few months ago I had no emergency fund now I have a 600 dollar emergency fund and still growing!! Such a good feeling!!
Good job :)
That’s great
Well done
MegaThunder keep growing and don't stop
Great Job!!
25 with a 10k emergency debt free , students loans paid off car paid off. Feels so good 🙌🏽 thanks Dave
CommentaryGold Same here! 🙌🏾
CommentaryGold wow that’s nice. I wish you could talk to my 28 y.o son who hasn’t gotten it yet. While he’s financially independent ( doesn’t ask me for any money and lives on his own) , but he still spends like crazy, has the credit cards etc. He just brought a brand new Nissan Maxima ( I assume about $30,000) , and I don’t think he’s saving for his future. I just hope he wakes up before it’s to late. What gave you the mindset to do the things you have done with your money? Congratulations keep up the good work. One day you’ll be one of the everyday millionaires that Dave always talks about.
@@pacluv I had $10,000 at 25 years old and that was after I put another $10,000 into a retirement fund.
What got me in the mindset is that my parents were never shy about talking about money and issues we were having. I know many therapists would say not to do that with kids. Of course, parents need to use good judgement when discussing the adult world with their children, as to never make it sound like it's the child's fault, but it shouldn't be a secret either.
But at the end of the day, it is on the child to see past the now. Many money problems happen because people look at emergencies like it's "a might happen" instead of a "will happen, just a matter of when and how" as emergencies should be looked at.
Good for you man!!! There IS another way.
You're in your prime. Go crazy and get rich bro!
I have $26k in my emergency fund and I’ve been debt-free for over two years. Phone was damaged/stolen? I can get a new one on the spot. Need new tires $800+? Done. I can handle practically most emergencies.
Good for you. I am kinda there I have 8k in emergency funds with 4.5k debt left. Id pay it off but my job is not stable. By Nov I will be debt free. I will then bumb up my 4 mons savings to 6. Start contributing and Max the roth ira I justed opened before April 15 2019. Throw my e fund in a no penalty CD making 2.10% max out Roth again then bump my fund from 6 to 9 mons. By that time ill be in a job that offers a 401k which I will max.
First Name Last Name oh for sure. I’m def contributing to my 401k and another investment as well. Nice job!
Mike, we have a vehicle maintenance/repair fund. I encourage people to have one. Certain items are just regular maintenance items that aren't emergencies at all. We cap ours at about $3k. Things like oil changes, brakes, tires, registration, flushes, etc are regular maintenance. Flat tire from a nail, if not covered by the maintenance/repair fund can go on emergency if the fund is depleted.
Mike Nelson dope!
I was thinking about having a sinking fund for a new vehicle and repairs in addition to my e fund but I am not sure. My car currently has 149k miles. I know something is going to happen soon. Like maybe 2.5-3k for vehicle repairs sitting in another account. I don't want to touch my e fund for a car repair. I look at the worse case scenario. I lose my job and my car on the same day or week. What do you think?
21 with a $12,500 emergency fund all thanks to Dave!
Yeah, nice job. I was so stupid when I was 21. You have more than me and I am nearing 30. Don't be like your "friends" and don't let your friends know you have 12.5k they will envy you and look at you differently because you are not like them. I let it slip one day at work that if we had to go on strike. I will be good for four months and we should do it if they mess up our pay again. I noticed everyone didn't like the comment because they are not in the position I am in.
Great job well done:)
ThePoopfacemegee I’m in a similar boat. It’s great to discover him at our age!
p ikr! Debt free and investing for retirement at 21 is a great feeling. Currently saving for a house!
I'm 22 and in the same boat. Great job! I just can't believe all of the people our age hasn't found Dave, or don't agree with his advice. I've had people laugh at me in college because I would watch Dave Ramsey videos before class started to pass time.
My problem is now that I hate to even spend the emergency fund
I am the same!!
Me too, Bucky! I didn’t want to have to touch my emergency fund while I was in Baby Step 2 because I didn’t want to have to stop paying off debt to rebuild that $1000! 😡 Had to use the fund 2 years in a row for major car repairs. First year, I had less than $800 before I needed to use it. Second year, a different repair took the whole $1000 plus $200 my sister helped me with. Paid her back the following month. I’m paying the last payment on my smallest debt at the end of this month! I’m afraid I may not get too far into Baby Step 3 before my 17 year old car goes to that big salvage yard in the sky. Without the debt, it’ll be easier to face rebuilding the emergency fund, especially with a more reliable car!
time to double it :)
That is soo true that’s why I’m going to be doing a sinking fund
Your not supposed to spend the emergency fund.
Today, I had to do major work on my car. I was told the price was almost $1000. I was calm because of my emergency fund! Thanks Dave!!!!
That was me this summer...twice!!! But I had it 💙
27 married, Debt free with 45k in emergency, 76k in aggressive Mutual funds, and a paid off townhouse. Thank You Papa Ramsey!
Shen 🔥🔥
@Councilman Les Wynan he's probably living in NYC. also medical emergencies can happen to everyone.
Councilman Les Wynan 76k in aggressive mutual funds that is investing 😂💀
Fantastic !!!!!!
Congratulations
18 with $5,000 emergency fund
Hippity Hopotus that’s incredible way to go!
The comment section gives me motivation.
Wow! You’re doing better than most people your age.
Excellent keep it up
Wow!
I have a years salary emergency fund saved up, and I've been debt free since around 2011, both personally and my two businesses. I cannot describe the feeling entirely, but it's like you finally sat down after standing your whole life. It changes your entire perspective about everything once you can afford "anything". I believe being debt free is how GOD wishes us to live. It's not just financial peace, it's peace itself..
Trying to build the emergency fund while emergencies keep happening. Pray for me 😂😂😂
In the same boat! We can do it!
Me, third. We can do this, be positive and keep moving forward. You can do this.
Well it’s working then
C Yupp. Finally had $1K then rear ended someone (cars brakes malfunctioned) wiped us out again.
C you got this!
I’ve got 4K left on my car. After that, the first 3 weeks of the month, I’ve got no bills.
I can’t wait.
How's the debt free life treatin' ya?
Dave has completely put an end to my 30yr streak of going into debt to buy cars. Haven’t had a car payment in two years and will never have one again. Thanks Dave!
How do you get around? Why would you buy a car knowing it would put you into more debt?
@@adamr.kalucki4347 i get around in a car but it was paid in full when i bought it
I’m 26 and on baby step 3 with $2000 in my emergency fund. Goal is $6000. Meanwhile I’m also saving for vacation and other expenses that will come my way (Birthdays, Christmas, Car Insurance, etc ) I can honestly say Dave Ramsey changed my financial life.
We have 35k as emergency money!! Thank God because we needed it... feels good to not borrow from family or banks.
My emergency fund is 5K. That covers 1 month rent and a new transmission.
Most positive comment section on the whole internet. I love hearing about people doing well and benefitting from the things Dave talks about. Awesome!
Couldn’t agree more. Just had to replace our roof, a job that costed us $6,400. Having our emergency fund helped us not have to take out a loan. Emergencies WILL happen. Definitely a must have!
We have paid off 1 credit card, and saved the $1000.
$7000 to go still, + $6500 where we are not being charged interest yet.
Thanks for the motivation, Dave Ramsey.
Rooting for you
Rooting for you! ✊
Keep at it!
I am in a similar boat and sometimes team work and motivation from just one person is all you need!
We are rooting for you!
Six years ago I lost my first wife. (Only child died before her) The peace that I felt while sitting by her bedside. Not worrying about how to pay the bills.
Thank you, for that gift!!!
Dave and team
As for living like no one else. I am remarried. My step daughter loves wwe. We were at survivor series in Houston last November. Third row from the ring.
Just finished my emergency fund of $15k and I've been dept free for 5 months ^.^
Congratulations!
Yes! Wish I had the mindset to do this sooner. Every time there was an emergency. Went straight to the Cash Advanced office like it was a normal thing to do! Ugh.
The amount of money I gave away to them makes me ill.
No more!
Having an emergency fund is so important. There always seems to be a small unexpected expense that comes up every month that wasn't in the budget. And a big unexpected expense that comes up every six months.
We have an emergency fund under $200 versus NOTHING before and we already feel a little better - we can breathe just a little easier.
Keep saving you can make that $1,000 in the next couple of months.
Hey, that okay. Keep moving forward, positive mind set to save more. At least you have one in emergency in place. God bless.👍
Keep it up. We're all rooting for you!
Just wait how you'll feel with 5 digits in your emergency fund
scorpiomaj27 $200 isn't an emergency fund it's pocket change
It’s funny before I started listening to Dave, I never thought about saving money. I kept up with my bills, but I just didn’t save anything. So if I did have an emergency I just used my credit cards and then paid them off. Until I started to listen I didn’t realize how just $1,000 could keep me from repeating this cycle. And $1,000 is really no money at all. At this point I had worked at my job for about 15 years, and I thought what do I have to show for all those years!!!!! Well now I’m on the right track I have $30,000 in my emergency fund ( step #3) , saving 15% for retirement and able to sleep 😴 at night. What was I thinking before Dave??? At that rate, by retirement I would have brought the book “ 50 ways to prepare Alpo and love it”. Thanks Dave. 🙌🏾 🙌🏾 🙌🏾 🙌🏾 🙌🏾
pacluv your story sounds like mine 15+ yrs and nothing to show for it thanks for the encouragement and motivation appreciate you for sharing
My wife and I have completed baby step 3. We have an emergency fund of $12000. Literally anything that comes up, we can cover. We live in FL so if the A/C goes out (its only 4 yrs old) we can pay for a new one! Our friends freak out over every expense that comes up, and it feels so good to not even bat an eye at an expense. They are always fighting with their wives about money, one of them even just got divorced. They made about 120k a year combined, but were COMPLETELY broke. My wife and I have NEVER gotten into an arguement in the 6 years we've been together (2 years married). Having money removes about 80% of the stress from life.
Congrats! It sounds like you’re both also compatible with each other and on the same page regarding your finances. That’s a double whammy blessing.
That's deep
this coronavirus is the exact reason why you need an emergency fund....who would have ever thought you could not go to work because of a pandemic???
I must thank you dave I use to make over 100k and never had a emergency fund before I retired. Together with my ex wife we made over 200k and Spent most of what we had. I got a divorce started watching your show taking home half what I make yet I was able to pay 2k to fix my car without no stress. It takes a lot to just humble yourself and do the common sense thing.
It really does change everything! We have our fully funded emergency fund.
Recently we had some emergency dental work. My father-in-law got in the hospital and passed away a few days later. (Several states away from us) Because our emergency fund was in place, we were able to cover that $2,500 worth of back to back emergencies in cash. So much less stress!
$20,000 gives me a lil comfort.
This shutdown proves how an emergency fund is needed. My parents raised me to be moral, avoid welfare, and have an emergency fund. Pay attention to Dave and intelligent elders.
acajudi100 that is so true
best thing about the pandemic is it made me realize how fortunate i was to still have a job and double down on saving !
When you have money things just dont bother you WE DONT HAVE EMERGENCIES WE HAVE INCONVENIENCES.
I love this saying.
I have a $250,000 emergency fund, and when the transmission on my pickup truck started slipping, I just went out and bought a new truck. No stress, no drama.
Sure
I started our emergency fund 3 months before our first ever emergency because of Dave. My wife just lost her job and we have 10,000 in the bank, the relief that causes us is huge! Do it people, whatever it takes and even if you feel like you’ll never need it
So I just started following baby steps and I have 3,000 in emergency fund. My truck started to leak a lot of coolant(waterpump). I was stuck away from home. It felt good not to worry. Just called tow truck driver, got myself a chocolate shake from whataburger while I waited for tow truck driver. And even though he charged a bit more for late night tow, I ended up blessing him with more than he asked. Felt good not to worry...
I can't believe I used to live without extra money in my bank. How reckless I was. Emergency funds and savings in general are a blessing. I don't know how more people don't save. I used to be the " I can't, its not possible with my income" and now I've got a great cushion. I woulda laughed at myself
19 and emergency fund of 20K :)
Impressive kid! I’m teaching my son who just got out of high school to have an emergency fund and do the same. He’s about $400 in which is good considering he just started working a month now.
Saiheme Billings I was completely broke and that’s what it took to teach me. I like to have money stashed away and invest in real estate too :)
Sir We Are About to Die I already got a job. This year will make 70K next year more. Going to purchase multi family and live in 1 unit so I don’t have a mortgage. Don’t worry ;)
Having the $1000 really gives you peace of mind, especially if you don't touch it but for the most dire of emergencies. If you didn't have the emergency fund, you'd try to cash flow the emergency or look at selling stuff or pick up a temporary job to pay for it. Still use that thought process to handle the emergency instead of always going straight to the emergency fund. That's my two cents worth of advice. Every family & every situation is different. Do what you believe to be the best course of action for you & yours. Peace.
Having an emergency fund is a life saver. My car broke down and the cost was 700$. I didn’t freak out or panic cause I knew I had that money there for that reason. It really gives you peace of mind!!
I used up my emergency fund because of an unfortunate health issue so i have to start over. I still incurred a little debt but at least I was able to pay for most of it in 4 months while staying current on my expenses.
Thanks Dave! Our family during these times have no debt and quite a bit stocked up in our emergency. We live and think a lot easier these days! Dave has been a voice of guidance when it comes to money.
Back in December I was living paycheck to paycheck and barely making ends meet. 5 months later and I have been able to save over $4000 in my emergency fund. Working towards $10k!
Hillbilly Crisis lol. Been there. 34, Wife and I are debt free with $30k in emergency fund and $100k saved for next home purchase. Thanks Dave.
Daves words rang true with me when my emergency fund started growing. "An emergency becomes an inconvenience". You feel prepared for the storms
Baby step six here. $10k emergency fund. 35yrs old/38yrs old. We have a Roth 401k and a Roth IRA. Various sinking funds. Just finished a 2yr journey of paying in cash for a large medical to do (non emergency but necessary). Less than $49k income.
I had an emergency fund until Hurricane Florence! Back on step 1 with the emergency fund.
Hurricane Maria!
Started ramseyfying our finances in may. I overlooked the fact that our car was overdue a timing belt change and i hadn't budgeted for it. Booked it into the garage and we have managed to cashflow the job, not even touched the EF and it is as Dave says an inconvenience thanks to our trimmed down budget. No sweat, no drama. Thank you so much Dave. Appreciation from englishwoman in France.
Been there, and learn to be thankful for what I have and appreciate it, not taking it for granted
Well put Ann, that is the real lesson here.
You are right. Dave. Peace of mind. 😀💰💰💰💰💰
I find stacking money in the bank more satisfying than spending for stuff I may or may not need.. it’s GROWTH. It helps me feel that my household is secure and it’s just a huge step in your personal being..
Sir We Are About to Die been in rock bottom sir and I promised myself never to go back there by all means necessary..
two years ago I had $5 in my savings acct. Today there's $3,700. Life is SO much better!
Paying off car today then going to tackle mortgage. Goal is to be out of mortgage debt in 5 years. Then maxing out retirement and keep adding to emergency fund.
I’m definitely sleeping better as my my emergency fund grows.
From Leo: Old saying among soldiers after the war; "ain't much trouble a man can't fix with $900 and a 30-06". Problems are a lot easier if you have the resources to handle them.
Just diagnosed with cancer. So grateful I’ve been stashing money in savings for 3 years. I really hate to spend it but at least we won’t be in financial crisis. One less thing to stress over.
I hope you get through this and have an amazing story to tell!
I saved 50 dollar from my paycheck and it was so expensive for me
Being debt free can’t come soon enough! 3k to go.
Remember the ant and the grasshopper story.
Thanks, for sharing that mind of thought. I remember that story.🤗👍
Living in London UK (there’s more than one!), having an emergency fund is more than essential. I can’t believe people think it’s weird to have one!
There was an excellent article written by Neal Gabler in the Atlantic called "The Secret Shame of the Middle Class." And he cites a research report conducted by Financial Reserve Board asks that if an expense of $400 came up, how would they pay for it?" And 47% of people said they either couldn't pay it or they would have to sell something or the borrow the money. when asked if they can come up with $2000 in 30 days, it's only about 30%. Most people only have enough money to keep going for 3 days if their income suddenly stopped. So yes, it's very weird to have an emergency fund and it shouldn't be.
Gabler calls this financial impotence and for good reason. It's more widespread then people want to admit. People don't want to talk about it when it does happen. And so they just ignore the problem. Easier to ignore it and hope it goes away.
just like in poker, it feels good when the chips are stacked in your favor.
Don't own a home without one. Been on the dave drug since 2005. There are no financial emergencies with a back up fund only emotional ones. Took 3 years to build but worth it.
Started my emergency fund in Feb of this year and finally reached 1,000. Still want to keep padding it because I still feel rocky on $1,000. With owning a home I feel like I need $3,000 to be comfortable.
I'm getting there!
Midwest Badger i agree you need to keep funding it especially with owing a home don't stop just there thats just the beginning keep building in fact you should have one just for housing expense also. So and emergency fund for emergency and a Housing fund if your able keep building both without putting a limit on them
This video is nothing but truth! An emergency fund changes everything!
I have a monthly expenses replacement fund and an emergency fund account. I sleep so well and am thankful every single day.
When you have an emergency fund, you lose your dependency for a credit card, especially if you have been able to grow it a bit. It's like your very own interest- free debt- free credit. Awesome!
We have our fully funded EF plus some sinking funds, which we can pull money out of if needs be. For instance, the 'next car fund' can take the hit of an unexpected major repair or insurance deductible, the 'home fix up' fund can cover a new water heater, well pump or the like, and the 'medical/vet fund' can easily cover that ER vet trip or misc. health care costs that arise. Our EF is our BIG cushion we try never to touch, and our sinking funds are our little helpers that keep it 'safe'. OUr system isn't for everyone, but it works for us.
Paid off my student loan of £2990 due to 3 jobs and gezelle intensity in only 3 months. Still over paying my mortgage and investing during that 3 months. Over here in England. Thanks Dave for the guidance /videos and book.
I’m from the UK too, glad I’m not the only one from here following the baby steps!
I'm scared right now. I have only three months savings (no debt, no payments) and my coworkers joked about me getting replaced. It made me angry and now everyday I wish I could just quit. I am applying for jobs now but I had never met such mean people in my life.
I am funding my emergency fund as we speak !! I have almost $20k but I want at least $50k.
Hope you were able to build it up to your 50k goal!
I only have $9k in my emergency fund right now, but this past year I've had $4600 in expenses from a furnace repair, two car repairs, and a doctor's bill for lab tests. I also paid off my car which was an additional $6000. Now the only debt I have is the house with $19k left on it. My goal this year is to have more money in the bank than what I owe on the house by the end of the year. I'm not paying off the house though until I can do it while still keeping 6 months of emergency funds in the bank ($18k)
I work for an insurance company and I can tell you there's a huge difference between individuals who are ready to face an emergency and those that aren't. Car accidents create a situation where Murphy is just hiding in the corner, waiting to pounce. You've checks that don't come right away. You've got delays in the investigation because the drivers of the other car are refusing to cooperate. You've got to wait for an estimate. There's sometimes even miscommunications. Whatever it is.
When you don't have an emergency fund and something goes wrong with the claim, you're dealing with everything at once. Like if a check doesn't arrive at the shop on time for them to finish your car, because now they're not going to release your car, and the insurance company hasn't approved extra days in the rental. You can't reach the adjuster because he closed your claim and left the office for the day. It's a mess! And you're having to deal with it all at once! So now you're stranded and now you're whole day is ruined, and you're panicking because you got to get back to work.
When you have an emergency fund, you can deal with it bit by bit. You can say, "You know what? I'll just pay for this now, get my car, and then when I get home, I can call the adjuster. If he's not there, no biggie, I can wait for his return call so we can discuss the insurance reimbursing me." So now the situation goes from completely unmanageable, to just annoying. And you can deal with how annoying it is because you're dealing with an entire fallout.
$1000 emergency fund $1500 debt and a stable state job. going to start a house fund in June.
Emergency funds are important and if you don’t have one I encourage you all to start. And you can start small and build up. That’s how I did it and now use a two fund approach for my emergency fund savings strategy.
I absolutely love dave ramsey. ...my favorite person outside of family
Good stuff Dave
250 in the bank and was told today that my daughter may be coming in three weeks . It's a start . Praying that 1000 is there before she comes . Been living off tips to go ahead put checks at the savings . God will help with wisdom and peace.
Peace of mind is priceless.
I totally agree. Dave Ramsey, I personally experience that in my life, the rain days and nights do come. And, yes I had put a emergency in place. That's what save me. Yes, I do have a peace of mind when I paid cash for it too.🤗
I had a 20000 EUR emergency fund when I was 18 and spent a lot of it travelling a fun. I've been a spoiled brat. I gave 7000EUR left and 14 000 EUR debt. Now I'm getting my things together. I want financial peace ! The debtor is solve to the lender !
I wish I knew all this stuff when I was in my early 20s. Better late than never though.
Thanks Dave for all the gems you drop on a daily
When you start managing your money, you realize that there are very few true emergencies. We saved $12K at the beginning of 2015, after we paid off our student loans, and we haven't touched it since. We haven't had any major problems, but, without debt, it's a lot easier to cash flow the normal unexpected expenses (ex: a $500 bill from the mechanic). I think many people don't get the point of an emergency fund. It's basically a form of self-insurance, only to be used when all the other cash is gone.
We we we who cares
SO true!
we won't touch brand new vehicles ,I've heard a tail light can cost close to what Dave paid to put a transmission in that old van🙁
Thanks to Uncle Dave's guidance my wife and I were able to purchase a new AC unit for our home when the old one blew. Our emergency fund made that crisis an inconvenience. Thanks for your advice Dave. God bless!
Love the way this man talks
Having that little bit of money set aside, feels so good when something goes wrong.
BIG DAVE SPEAKING THE TRUTH
This man speaks the truth.
I love Dave ❤
2 ppl are financially ignorant
love the 'hillbilly drama' comparison! love your channel, Dave. xo
Amen!
True Dave not many people do have emergency funds 🙄
1k isn't enough for an emergency fund for me. Too often I've had emergencies come up requiring more than that so for me it's 3k. It really did lift my anxiety so much once I got the emergency fund and had a plan that I knew I could execute to get rid of my loans. I had no idea how much the stress was affecting me until it was gone.
2020 needed this video
This is Dave at his best!
I have 15k, just in case. But I'm thinking of bumping it up to 30k, just in case I need to buy an emergency car in cash.
You can get a good car for 10k lol
Journey to Paradise why just stop there keep it going
@@yolandaking4583 stopping there for now because I have student loan debt to pay off. 😅. But as soon as the debt is paid off, am totally going to increase savings and investments.
I agree with u totally Dave. People need emergency fund. I’m a FA from a bank that’s what I’m helping my client to do. :)
This time a year ago, I went and financed a new vehicle, rather than pay to repair the transmission on my paid off car, because I didn't even have the money to have my old car fixed. One of the stupidest financial decisions of my life. But now, I sold that new vehicle, and I am driving a quality paid off used car. Not only that but I have money in my emergency fund! So much can change in just a year. Thank you Dave
I keep around a 70k e fund and have 200k in student loans. I’ll have them payed off in 12 months. Then onto investing and saving. Always been a natural saver and have a savage income.
I doubt if I’d be this far along in my plan to be debt free if I hadn’t happened upon Dave’s show back in late 2013 or early 2014. Didn’t start right away. Had to get current first, then increase my income. I know I wouldn’t have thought to do Baby Step One. I would have jumped right into Baby Step Two. Well, my version of Step Two. Probably would have just upped the monthly payment some, but not snowballed it. It was exciting to use those online early payoff calculators and compare how much sooner a debt would be paid off, depending on how much more you increased the payment. So grateful I started listening to Dave!
What he is talking about is so true.