{"id":58839,"date":"2023-02-27T04:06:49","date_gmt":"2023-02-27T08:06:49","guid":{"rendered":"https:\/\/www.iwillteachyoutoberich.com\/?p=58839"},"modified":"2025-04-04T10:32:47","modified_gmt":"2025-04-04T14:32:47","slug":"emergency-fund","status":"publish","type":"post","link":"https:\/\/www.iwillteachyoutoberich.com\/emergency-fund\/","title":{"rendered":"Emergency Fund: how a few thousand dollars can save your life"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"58839\" class=\"elementor elementor-58839\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0e7cbae elementor-section-boxed elementor-section-height-default elementor-section-height-default qodef-elementor-content-no\" data-id=\"0e7cbae\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-cd51037\" data-id=\"cd51037\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a8cc208 elementor-widget elementor-widget-text-editor\" data-id=\"a8cc208\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Most Americans wouldn\u2019t be able to cover a <u><a href=\"https:\/\/www.cbsnews.com\/news\/most-americans-cant-afford-a-500-emergency-expense\/\" target=\"_blank\" rel=\"noopener noreferrer\">$500 surprise expense<\/a><\/u>. So if you are one of the <u><a href=\"http:\/\/money.cnn.com\/2017\/01\/12\/pf\/americans-lack-of-savings\/index.html\" target=\"_blank\" rel=\"noopener noreferrer\">four in ten<\/a><\/u>\u00a0people who <em>do<\/em>\u00a0have an emergency fund, you\u2019re ahead of the majority of people AND you\u2019re better positioned for unexpected purchases.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>If you don\u2019t have the cash, don\u2019t worry. You\u2019ve come to the right place. I\u2019m going to give you a system to create an emergency fund <em>passively <\/em>AND show you when exactly to use the money.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:list --><\/p>\n<ul>\n<li><u><a href=\"#1\">What is an emergency fund?<\/a><\/u>\n<ul>\n<li><u><a href=\"#2\">How to prepare for surprise expenses<\/a><\/u><\/li>\n<li><u><a href=\"#3\">How to prepare for a loss of income<\/a><\/u><\/li>\n<\/ul>\n<\/li>\n<li><u><a href=\"#4\">How to start an emergency fund<\/a><\/u>\n<ul>\n<li><u><a href=\"#5\">Step 1: Find out how much you need<\/a><\/u><\/li>\n<li><u><a href=\"#6\">Step 2: Where to open an account<\/a><\/u><\/li>\n<li><u><a href=\"#7\">Step 3: How to automate the system<\/a><\/u><\/li>\n<\/ul>\n<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b17fd78 elementor-widget elementor-widget-text-editor\" data-id=\"b17fd78\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"color: #000000; font-size: 40px;\">What is an emergency fund?<\/span><\/p>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>Let&#8217;s start with the basics. An emergency fund is money you&#8217;ve saved to cover any unexpected expenses. The actual amount varies from person to person \u2014 but it should contain enough money for three to six months of living expenses.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>More importantly, though, it gives you the peace of mind knowing you have a hedge against the worst financial disasters AND allows you to be more aggressive in other areas of your life (e.g., investing, starting a side hustle).<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>There are two situations where you\u2019ll be glad you have that\u00a0emergency fund:<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:list {\"ordered\":true} --><\/p>\n<ol>\n<li>Surprise expenses<\/li>\n<li>Loss of income<\/li>\n<\/ol>\n<p><!-- \/wp:list --><!-- wp:paragraph --><\/p>\n<p>Let\u2019s walk through each to see what they might look like.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading {\"level\":3} --><\/p>\n<h3 id=\"2\">Unexpected expenses<\/h3>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>Did you know that 10% of Americans took a \u201chardship withdrawal\u201d from their <a href=\"https:\/\/www.iwillteachyoutoberich.com\/401k-the-single-best-way-to-grow-your-money\/\" target=\"_blank\" rel=\"noopener\">401(k)<\/a> in 2015?<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>That means they had to withdraw money from their retirement fund, incur a hefty penalty for it, and slow their retirement plans <em>because they didn\u2019t have money for emergencies.<\/em><\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>Think about that: 10% of Americans had to put off their retirement goals because they did not have an emergency fund. Your 401(k) and other <a href=\"https:\/\/www.iwillteachyoutoberich.com\/how-much-do-i-need-to-retire\/\" target=\"_blank\" rel=\"noopener\">retirement accounts<\/a> should be money saved for your financial future \u2014 not to be used for unexpected expenses like:<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:list --><\/p>\n<ul>\n<li>Medical bills<\/li>\n<li>Financial\/identity theft<\/li>\n<li>Car repairs<\/li>\n<li>Home repairs<\/li>\n<li>Economy crashes<\/li>\n<\/ul>\n<p><!-- \/wp:list --><!-- wp:paragraph --><\/p>\n<p>Let\u2019s be honest: You can\u2019t always choose whether to dip into things like credit cards or your retirement during emergencies \u2014 and that\u2019s okay! As the wise proverb goes: Shit happens.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>BUT you can anticipate the unexpected by starting an emergency fund today. Doing so will soften the impact of major financial emergencies you may encounter.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading {\"level\":3} --><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d8c1f26 elementor-widget elementor-widget-text-editor\" data-id=\"d8c1f26\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h3 id=\"3\">Loss of income<\/h3>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>No one ever \u201cplans\u201d to lose their job BUT it happens. If it does happen to you, you need to be able to support yourself and your loved ones.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>That\u2019s why I\u00a0recommend you\u00a0have three to six months of living expenses in the bank for these situations.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>The average duration for unemployment in the U.S. is just a little more than five months (per <u><a href=\"https:\/\/www.bls.gov\/news.release\/empsit.t12.htm\" target=\"_blank\" rel=\"noopener noreferrer\">Bureau of Labor Statistics<\/a><\/u>).\u00a0I have six months of cash for this very reason. I know. I know. I\u2019m the CEO of a personal finance company, how could anything go wrong?\u00a0*knocks on wood*<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>This money provides me with peace of mind because I know I\u2019ll be able to withstand the pressure if I ever need to use it.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading --><\/p>\n<h2 id=\"4\">How to start an emergency fund<\/h2>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>Putting money towards an emergency fund is an AWESOME goal to have. But let\u2019s be candid, it might take a while depending on how much you can put away each month.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>For instance, if your expenses are $1,000 a month and you can only put away $50 a month towards your emergency fund, it\u2019s going to take you <em>ten years <\/em>to save enough\u00a0to have six months in the bank.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>There\u2019s one thing I want you to know: That\u2019s okay! <a href=\"https:\/\/www.gobankingrates.com\/banking\/savings-account\/best-savings-accounts\/\" target=\"_blank\" rel=\"noopener\">57% of Americans<\/a> have less than $1,000 in their savings account. That means if you save anything at all, you\u2019re putting yourself in a better financial position than the vast majority of people.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>Your emergency fund is going to take a long time to build. That\u2019s why I\u2019m going to show you how to build your emergency fund AND earn more money so you can finish your goal sooner. There are four steps to get there.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading {\"level\":3} --><\/p>\n<h3 id=\"5\">Step 1: Find out how much you need<\/h3>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>First, we need to establish how much you need in your emergency fund.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>To do that, you have to add up three to six months\u2019 worth of:<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:list --><\/p>\n<ul>\n<li>Utility bills (internet, water, electricity, etc.)<\/li>\n<li>Rent<\/li>\n<li>Car\/home payments<\/li>\n<li>Food\/groceries<\/li>\n<li>Other necessities<\/li>\n<\/ul>\n<p><!-- \/wp:list --><!-- wp:paragraph --><\/p>\n<p>Basically, any living expense that you have should be accounted for. Add them all up and you\u2019ll have a <em>rough <\/em>estimate of how much you need. It\u2019s okay if it\u2019s not perfect. A ballpark figure will work.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>Here\u2019s a quick table that\u2019ll show you how much you\u2019ll need based on potential expenses:<\/p>\n<p>\u00a0<\/p>\n<center>\n<p>\u00a0<\/p>\n<table border=\"1\">\n<tbody>\n<tr>\n<td><strong>MONTHLY EXPENSES<\/strong><\/td>\n<td><strong>EMERGENCY FUND (3 &#8211; 6 MONTHS)<\/strong><\/td>\n<\/tr>\n<tr>\n<td>$500<\/td>\n<td>$1,500 &#8211; $3,000<\/td>\n<\/tr>\n<tr>\n<td>$1,000<\/td>\n<td>$3,000 &#8211; $6,000<\/td>\n<\/tr>\n<tr>\n<td>$2,000<\/td>\n<td>$6,000 &#8211; $12,000<\/td>\n<\/tr>\n<tr>\n<td>$3,000<\/td>\n<td>$9,000 &#8211; $18,000<\/td>\n<\/tr>\n<tr>\n<td>$4,000<\/td>\n<td>$12,000 &#8211; $24,000<\/td>\n<\/tr>\n<tr>\n<td>$5,000<\/td>\n<td>$15,000 &#8211; $30,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<\/center>\n<p>\u00a0<\/p>\n<p><!-- \/wp:html --><!-- wp:paragraph --><\/p>\n<p>The average yearly expenses for Americans total <u><a href=\"https:\/\/howmuch.net\/articles\/how-americans-spend-money-2017\" target=\"_blank\" rel=\"noopener noreferrer\">$57,311<\/a><\/u>\u00a0\u2014 or about $4,776 a month. So that means you should save about $14,328 to $28,656.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>TIP: If your goal was to save up $14,328 and you were putting away $500 a month towards your goal, it\u2019d take over two years to get there. Like I said, this is going to take a while \u2014 but I\u2019ll show you how you can start saving easily with a great system.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>When it comes time to use your emergency fund, you\u2019re likely going to have to make some sacrifices, ESPECIALLY if you just lost your job.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>This means you might have to cancel things like cable, Netflix, Uber\/Lyft rides, gym memberships, and that recurring reservation at your favorite <u><a href=\"https:\/\/www.youtube.com\/watch?v=M6XiFKB7j0w&amp;feature=youtu.be&amp;t=12m27s\" target=\"_blank\" rel=\"noopener noreferrer\">caviar fried chicken place<\/a><\/u>.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>\u201cBut Ramit! That goes entirely against your Rich Life philosophy! Why shouldn\u2019t I be able to buy a latte with my emergency fund?\u201d<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>Listen, there\u2019s nothing stopping you from using your emergency money while\u00a0living the lifestyle you want. You just have to <em>factor that into your savings goals. <\/em><\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>At the end of the day, this is your emergency fund. You can put as little or as much in it as you want. Just know that this money is there to get you through some of the toughest financial disasters of your life.\u00a0<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>Maybe you\u2019re content living at 70% of your current expense. Maybe nothing less than 100% is acceptable. Either works, just put away your money accordingly.\u00a0When those moments happen, sacrifice might very well become necessary.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>Once you know how much you roughly need to get you through three to six months, it\u2019s time to open an account where your money will live.\u00a0\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eb9c205 elementor-widget elementor-widget-heading\" data-id=\"eb9c205\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-heading-title elementor-size-xl\">The world wants you to be vanilla...<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a490bfa elementor-widget elementor-widget-text-editor\" data-id=\"a490bfa\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>\u2026but you don\u2019t have to take the same path as everyone else. How would it look if you designed a Rich Life on your own terms? Take our quiz and find out: <!-- notionvc: 221f42a3-ed48-4b36-ad42-ab2da920e3f0 --><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e801799 elementor-widget elementor-widget-button\" data-id=\"e801799\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Take the Quiz<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4f3c0e8 elementor-widget elementor-widget-text-editor\" data-id=\"4f3c0e8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<h3 id=\"6\">Step 2: Open an account<\/h3>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>There are two places you can put your emergency fund:<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:list --><\/p>\n<ul>\n<li>A checking account<\/li>\n<li>A savings account<\/li>\n<\/ul>\n<p><!-- \/wp:list --><!-- wp:paragraph --><\/p>\n<p>There are pros and cons to each. If your money is in a checking account, it can be more readily available for when emergencies happen. However, it can also be much easier to dip into your emergency fund for NON-emergencies because of your limited willpower.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>You might prefer then to put your emergency fund in a high-yield savings account. There it can safely sit until your rainy day (and the government will insure\u00a0your cash up to <u><a href=\"https:\/\/www.google.com\/search?q=how+much+is+your+money+insured+for+in+a+bank&amp;oq=how+much+is+your+money+insured&amp;aqs=chrome.0.0j69i57j0l2.2967j0j7&amp;sourceid=chrome&amp;ie=UTF-8\" target=\"_blank\" rel=\"noopener noreferrer\">$250,000<\/a><\/u>).<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>One suggestion:\u00a0Find\u00a0a bank that allows you to have a <span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.iwillteachyoutoberich.com\/tip-using-sub-savings-accounts-for-unexpected-expenses\/\" target=\"_blank\" rel=\"noopener\">sub-savings account<\/a><\/span> too.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>This is an account you open along with your regular savings\/checking accounts that can be used for specific expenses.\u00a0Chances are your bank already does this. If your bank doesn\u2019t, that\u2019s okay! You just need to find one that does.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>Here are a few great suggestions for banks that offer great savings accounts (with sub-savings):<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:list --><\/p>\n<ul>\n<li><strong><u><a href=\"https:\/\/www.capitalone.com\/bank\/savings-accounts\/online-savings-account\/\" target=\"_blank\" rel=\"noopener noreferrer\">Capital One 360 \/ ING Direct<\/a><\/u><\/strong> (This is the one I use)<\/li>\n<li><strong><u><a href=\"http:\/\/ally.com\" target=\"_blank\" rel=\"noopener noreferrer\">Ally Bank<\/a><\/u><\/strong><\/li>\n<li><strong><u><a href=\"https:\/\/www.banking.barclaysus.com\/online-savings.html\" target=\"_blank\" rel=\"noopener noreferrer\">Barclays Online<\/a><\/u><\/strong><\/li>\n<li><strong><u><a href=\"https:\/\/www.discover.com\/online-banking\/savings-account\/\" target=\"_blank\" rel=\"noopener noreferrer\">Discover Online Savings<\/a><\/u><\/strong><\/li>\n<\/ul>\n<p><!-- \/wp:list --><!-- wp:paragraph --><\/p>\n<p>Your bank might even allow you to give the account a <em>nickname<\/em>. This lets your sub-savings accounts reflect your savings goals.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>Check out all the different sub-savings accounts I had in my old savings account.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<center><img decoding=\"async\" class=\"wp-image-25694\" src=\"https:\/\/iwtoldproddev.wpengine.com\/wp-content\/uploads\/pasted-image-0-483.png\" alt=\"pasted image 0 483\" \/><br \/><em>ING Direct is now Capital One 360. BTW that wedding one is going to be <u><a href=\"https:\/\/iwtoldproddev.wpengine.com\/blog\/the-28000-question-why-are-we-all-hypocrites-about-weddings\/\" target=\"_blank\" rel=\"noopener noreferrer\">put to good use<\/a><\/u>.<\/em><\/center>\n<p>\u00a0<\/p>\n<p><!-- \/wp:html --><!-- wp:paragraph --><\/p>\n<p>Here\u2019s a look at a few sub-savings accounts I have now:<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:html --><\/p>\n<center><img decoding=\"async\" class=\"wp-image-25693\" src=\"https:\/\/iwtoldproddev.wpengine.com\/wp-content\/uploads\/Screen-Shot-2018-01-25-at-1.51.06-PM-3.png\" alt=\"Screen Shot 2018 01 25 at 1.51.06 PM 3\" \/><br \/><em>ING switched to Capital One 360, and I used the money I saved to buy an engagement ring<\/em><\/center>\n<p>\u00a0<\/p>\n<p><!-- \/wp:html --><!-- wp:paragraph --><\/p>\n<p>So create one and name it \u201cEmergency Fund.\u201d Once you have your account, it\u2019s time to start putting away money using an automated system.<\/p>\n<h3 id=\"7\">Step 3: Automate your emergency fund<\/h3>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p><a href=\"https:\/\/www.iwillteachyoutoberich.com\/the-psychology-of-automation-building-a-bulletproof-personal-finance-system\/\" target=\"_blank\" rel=\"noopener\">Automated finances<\/a> are the ultimate cure to never knowing how much you have in your checking account and how much you can spend.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>When you receive your paycheck, your money is funneled to exactly where it needs to go.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:html --><\/p>\n<p>\u00a0<\/p>\n<center><img decoding=\"async\" class=\"wp-image-25692\" src=\"https:\/\/iwtoldproddev.wpengine.com\/wp-content\/uploads\/pasted-image-0-482.png\" alt=\"pasted image 0 482\" width=\"700\" \/><\/center>\n<p>\u00a0<\/p>\n<p><!-- \/wp:html --><!-- wp:paragraph --><\/p>\n<p>Check out my video below to learn exactly how to set it up today.<!-- wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6686802 elementor-widget elementor-widget-video\" data-id=\"6686802\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/youtu.be\\\/tE1s4Eg6SCE&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-wrapper elementor-open-inline\">\n\t\t\t<div class=\"elementor-video\"><\/div>\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a686372 elementor-widget elementor-widget-text-editor\" data-id=\"a686372\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>I recommend you automate your accounts so you\u2019re sending around 5% of your income into your emergency fund.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>Knowing how much you\u2019re putting in each month also lets you know exactly when you\u2019ll hit your goal \u2014 allowing you to rest easy knowing your personal finance machine is working for you.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>The hard cash amount might change as you <u><a href=\"https:\/\/www.iwillteachyoutoberich.com\/\/salary-negotiation\/\" target=\"_blank\" rel=\"noopener noreferrer\">get raises<\/a><\/u>, <u><a href=\"https:\/\/www.iwillteachyoutoberich.com\/\/3-tips-to-dominate-your-job-interview-and-give-the-perfect-answers\/\" target=\"_blank\" rel=\"noopener noreferrer\">change jobs<\/a><\/u>, or come into <a href=\"https:\/\/www.iwillteachyoutoberich.com\/blog\/how-to-make-money-fast\/\"><u>extra money<\/u><\/a>. That\u2019s fine! The important thing is that you\u2019re saving <em>even if it\u2019s a small amount.<\/em><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-73732b6 elementor-section-boxed elementor-section-height-default elementor-section-height-default qodef-elementor-content-no\" data-id=\"73732b6\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-52228ad\" data-id=\"52228ad\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4f70543 elementor-widget elementor-widget-heading\" data-id=\"4f70543\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">FAQs about Emergency Funds<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-368e5d5 elementor-widget elementor-widget-text-editor\" data-id=\"368e5d5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h4><span style=\"font-weight: 400;\">Can I use my emergency fund for non-emergency expenses?<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">It is generally not recommended to use your emergency fund for non-emergency expenses, as doing so can deplete your savings and leave you vulnerable to unexpected expenses. Try to keep your emergency fund separate and only use it for true emergencies.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Should I include my retirement savings in my emergency fund?<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">It is generally not recommended to include your retirement savings in your emergency fund, as doing so can deplete your long-term savings and leave you vulnerable to unexpected expenses. Keep your emergency fund separate and only use it for true emergencies.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Can I have multiple emergency funds?<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Yes, you can have multiple emergency funds for different purposes, such as a medical emergency fund or a car repair fund. Keep each fund separate and clearly labeled to avoid confusion.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0cb946b elementor-section-boxed elementor-section-height-default elementor-section-height-default qodef-elementor-content-no\" data-id=\"0cb946b\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-edacd9a\" data-id=\"edacd9a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-94c06e3 elementor-widget elementor-widget-qi_addons_for_elementor_blockquote\" data-id=\"94c06e3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"qi_addons_for_elementor_blockquote.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"qodef-shortcode qodef-m qodef-qi-blockquote qodef-layout--top qodef--\">\n\t\t\t\t<h4 class=\"qodef-m-text\">\n\t\t\tIf you liked this post, you\u2019d LOVE my New York Times Bestselling book\n\t\t<\/h4>\n\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e90eb64 elementor-section-boxed elementor-section-height-default elementor-section-height-default qodef-elementor-content-no\" data-id=\"e90eb64\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-10aecb0\" data-id=\"10aecb0\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-22185e5 elementor-widget elementor-widget-text-editor\" data-id=\"22185e5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>You can read the first chapter for free \u2013 just tell me where to send it:<!-- notionvc: cce2d459-2a00-41a8-8f96-22d016dbdfa9 --><br \/><!-- notionvc: cce2d459-2a00-41a8-8f96-22d016dbdfa9 --><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7f9a35a elementor-widget elementor-widget-qi_addons_for_elementor_wp_forms\" data-id=\"7f9a35a\" data-element_type=\"widget\" data-e-type=\"widget\" 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--><div class=\"wpforms-submit-container\" ><input type=\"hidden\" name=\"wpforms[id]\" value=\"53529\"><input type=\"hidden\" name=\"page_title\" value=\"\"><input type=\"hidden\" name=\"page_url\" value=\"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/posts\/58839\"><input type=\"hidden\" name=\"url_referer\" value=\"http:\/\/www.iwillteachyoutoberich.com\/emergency-fund\/\"><button type=\"submit\" name=\"wpforms[submit]\" id=\"wpforms-submit-53529\" class=\"wpforms-submit\" data-alt-text=\"Sending...\" data-submit-text=\"Download My Free First Chapter\" aria-live=\"assertive\" value=\"wpforms-submit\">Download My Free First Chapter<\/button><\/div><\/form><\/div>  <!-- .wpforms-container --><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Most Americans wouldn\u2019t be able to cover a $500 surprise expense. So if you are one of the four in ten\u00a0people who do\u00a0have an emergency fund, you\u2019re ahead of the majority of people AND you\u2019re better positioned for unexpected purchases. If you don\u2019t have the cash, don\u2019t worry. You\u2019ve come to the right place. I\u2019m [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":89140,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"_lmt_disableupdate":"no","_lmt_disable":"","_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[160],"class_list":["post-58839","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"acf":[],"aioseo_notices":[],"modified_by":null,"_links":{"self":[{"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/posts\/58839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/comments?post=58839"}],"version-history":[{"count":0,"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/posts\/58839\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/media\/89140"}],"wp:attachment":[{"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/media?parent=58839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.iwillteachyoutoberich.com\/wp-json\/wp\/v2\/categories?post=58839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}