Log in m6pizer a year agoPosted a year ago. Direct link to m6pizer's post “Is the sun bigger than th...” Is the sun bigger than the moon • (17 votes) RyanColorado2007 a year agoPosted a year ago. Direct link to RyanColorado2007's post “No, I guess it's not... *...” No, I guess it's not... sigh I suppose the moon is the center of the universe after all. :/ (8 votes) stephen Davis a year agoPosted a year ago. Direct link to stephen Davis's post “These examples are not re...” These examples are not real life. Today we pay rents of 3,000 or more. There is nothing left to save • (11 votes) David Alexander a year agoPosted a year ago. Direct link to David Alexander's post “Somebody else asked exact...” Somebody else asked exactly that 9 days ago. Did you copy and repost it? I think I gave a pretty good answer to it then. Have you read that? Why not give it a look. You might learn something. (6 votes) Elizabeth Fields a year agoPosted a year ago. Direct link to Elizabeth Fields's post “After the emergency fund ...” After the emergency fund goal is reached, is it okay to take a percentage of the savings (like 5% of the 20%) and keep adding to the fund? Or should it go into other goals like saving for college, a car, etc.? • (4 votes) David Alexander a year agoPosted a year ago. Direct link to David Alexander's post “How you go about these th...” How you go about these things is totally up to you. Once your emergency fund is in place, and other life goals seem to be on track, you should not restrict your life to "saving money". Life is here to enjoy. Our savings plans facilitate that. Overfocus on every penny makes you a miser, and you don't want to become one of those. (8 votes) frankie triebl a year agoPosted a year ago. Direct link to frankie triebl's post “Yowzah!” Yowzah! • (6 votes) RyanColorado2007 a year agoPosted a year ago. Direct link to RyanColorado2007's post “Bazinga” Bazinga (2 votes) dcman08 a year agoPosted a year ago. Direct link to dcman08's post “you could also save for a...” you could also save for a more expensive want • (5 votes) Cami a year agoPosted a year ago. Direct link to Cami's post “These examples are not re...” These examples are not real life. Today we pay rents of 3,000 or more. There is nothing left to save • (3 votes) David Alexander a year agoPosted a year ago. Direct link to David Alexander's post “You are absolutely correc...” You are absolutely correct in this. The course may be using a nation-wide standard rather than what pertains to where you reside, especially if you are in a major metropolitan area like San Francisco, Austin, or Boston. As of February 2023, the average monthly rent for a two-bedroom apartment in the United States reached 1,320 U.S. dollars, up from 1,282 U.S. dollars a year before. (5 votes) Kayla Gonzalez a year agoPosted a year ago. Direct link to Kayla Gonzalez 's post “What happens to your emer...” What happens to your emergency account if you switch banks? • (3 votes) David Alexander a year agoPosted a year ago. Direct link to David Alexander's post “You transfer the balance ...” You transfer the balance from one bank to the other. People do this kind of stuff all the time. (4 votes) x.asper (bio) 10 months agoPosted 10 months ago. Direct link to x.asper (bio)'s post “@1:30, Sal mentions "afte...” @ And on another note, why are there so many taxes? We seem to spend a large amount of income on taxes. Why so? • (3 votes) David Alexander 10 months agoPosted 10 months ago. Direct link to David Alexander's post “You can't know exactly fo...” You can't know exactly for the full year until the taxes are filed. But you can estimate it. If you are in the 13% bracket, for example, figure that for every $100 that you earn, you'll only get $87 into your hand. The rest will be transferred to the government, and at the end of the year, if that was too much, you'll get some of it back. The point is, you can't know exactly how many dollars and cents until your taxes are filed in the next year. There are so many taxes because that is how the American legislatures think Americans want things to be run. In Canada, it's different. In Europe, it's different. BUT, everywhere around the world where any government provides things like roads, sidewalks, schools, airports, coast guard, police, health care or things like that, money must be collected to pay for all these things. Not collecting school taxes from property owners who have no children means the entire expense of education falls on those families with children in school. (3 votes) 78nicolette.mason a year agoPosted a year ago. Direct link to 78nicolette.mason's post “Question: Do you put your...” Question: Do you put your wants into a savings account? • (3 votes) Elvira (Elly) a year agoPosted a year ago. Direct link to Elvira (Elly)'s post “Wants can certainly go in...” Wants can certainly go into calculation of savings. For example, my spouse wanted a recliner. It was definitely a want, not a need :-) We saved for it for a year, and bought it outright: no credit card, no payments, no hit to the budget. (3 votes) H2BIWM 9 months agoPosted 9 months ago. Direct link to H2BIWM's post “We don't know how much we...” We don't know how much we are going to make. If we make enough, we save with the goal of an emergency fund. We feel that after that we can then start the 50-30-20 rule. In the meantime we struggle to estimate how much our taxes will be. Is there a reliable calculator for that? • (3 votes) David Alexander 9 months agoPosted 9 months ago. Direct link to David Alexander's post “There are all kinds of gu...” There are all kinds of guides to help you make your way through these kinds of questions. Your first stop should be your local library. The librarian there will point you to the best books for your situation. (2 votes)Want to join the conversation?
Once you have your emergency fund goal reached, you are free to do other things with what used to go into it.
I like your idea of setting up other "funds" with designated purposes. Even funding something frivolous like a weekend at the beach is fine, but don't eat into your emergency fund to do that.
I found this information at statistica.com
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Video transcript
- In life, there are things that we expect and there's other thingsthat we don't expect. When we think about it froma finance point of view, the things that we might expect is, okay, we're going to get a regularpaycheck because of our work and we're going to haveregular payments for things like our rent or maybe ourcar payment or insurance. But then there's theunexpected things that for the most part, mostof us wish don't happen. I guess there could be unexpectedpositive things as well but unexpected negative thingsare maybe your car breaks down, and that's pretty importantbecause your car breaking down isn't just a nice to havething or nice thing to fix. You probably need your car to get to work and make your money. You might have anunforeseen medical expense for you or a family memberthat you have to pay and it could actuallyaffect how much income you or your family's able toget if you have to take off of work because of that medical event. And so because of that,it is very good to save for a rainy day and havethat emergency fund. Now, most experts will tell you that you should have an emergency fund that's equal to about three to six monthsof your needed expenditures. We've talked about the 50, 30, 20 rule, which is 50% on needs,30% on wants 20% of your after tax income that you'rebringing in for savings. And that savings, first and foremost, should be for an emergency fund until you have a nice emergency fund. And then you could thinkabout other things. So let's say there's a situation where your needs are $2,000 a month. You know, that's yourrent, your car payment, your insurance, your groceries, the core groceries thatyou really, really need. If it's $2,000 a month, thenan expert would say, hey, you need three to six months there. So that would be six to$12,000 of an emergency fund. If for whatever reason you lose your job, your car breaks down, you have to help out a family member,then you're going to have some reserves to be able toweather that actual storm. Now, above and beyond that, obviously it's even better to save and then you can alsothink about that as even a bigger emergency fund oreven put it other places. But it's really important tokeep this type of money around. Otherwise, yeah, you could find yourself in a tough situation.
