I keep 1 month of expenses in cash in my savings account and an additional 3 months in a short-term treasury bill ETF in a brokerage that is separate from my normal spending and savings accounts. I do this because it takes 2-3 days for cash to settle after selling a stock/ETFs and an additional 1 day to transfer to my main account to spend it. This ensures I or my wife do not spend it unless we really need it. The 1 month in cash and our credit cards, which we keep paid off, have handled every emergency we have had over the last decade, but it's a huge peace of mind having that 3 month emergency fund tucked away for any life changing event's that might arise.
While it's good advice you are offering, when one has nothing with little opportunity to get anything, "setting aside emergency funds" is out of the question.
In South Africa it is mandatory to be in a savings account with the company you are you pay about 60% and a company pay 40% you don't have a choice when you retire you get your retirement package all the savings accumulated over the years debt excluding the state pension you also get no matter how rich or poor you are
The majority of the population can not come up with 400 cash if an emergency came up. I think it is beyond crazy to not have 15-25k for an emergency fund.
So the title of this is “why it’s important to save,” but that’s not what the story is about. And JFTR, the only reason I clicked on this video was because the title made me wonder how stupid you think we are. But it turns out we’re not the stupid ones.
I keep 1 month of expenses in cash in my savings account and an additional 3 months in a short-term treasury bill ETF in a brokerage that is separate from my normal spending and savings accounts. I do this because it takes 2-3 days for cash to settle after selling a stock/ETFs and an additional 1 day to transfer to my main account to spend it. This ensures I or my wife do not spend it unless we really need it. The 1 month in cash and our credit cards, which we keep paid off, have handled every emergency we have had over the last decade, but it's a huge peace of mind having that 3 month emergency fund tucked away for any life changing event's that might arise.
While it's good advice you are offering, when one has nothing with little opportunity to get anything, "setting aside emergency funds" is out of the question.
In South Africa it is mandatory to be in a savings account with the company you are you pay about 60% and a company pay 40% you don't have a choice when you retire you get your retirement package all the savings accumulated over the years debt excluding the state pension you also get no matter how rich or poor you are
Do people seriously not save ? I always have atleast 30k in a savings account
No they do, but as Dave Ramsey often says “ maybe they don’t have big enough shovel”.
The majority of the population can not come up with 400 cash if an emergency came up. I think it is beyond crazy to not have 15-25k for an emergency fund.
Yeah, people I know would like to save but have no means to do so as they struggle as it is to pay for everything every month.
So the title of this is “why it’s important to save,” but that’s not what the story is about. And JFTR, the only reason I clicked on this video was because the title made me wonder how stupid you think we are. But it turns out we’re not the stupid ones.