Show 20 - Handling Financial Emergencies
I talk about how to prepare for a financial emergency with an emergency fund and insurance.
12/6/20231 min read
Life can be rough sometimes, so to be ready for it we must prepare ourselves for financial emergencies. According to Bankrate’s annual report, 57% of Americans can’t handle a $1,000 emergency. You don’t have to be in that statistic! In this episode I discuss what an emergency fund is and how to build one, and the importance of insurance. Also, as a bonus, I answer a listener's question about their 457b!
Key Ideas
Consider all of your retirement account options, comparing expenses and returns, to determine the best place to put your money.
Start by saving a one month of expenses emergency fund (put a little aside every month now that you spend less than you earn!)
Then, start working toward a 3-6 month emergency fund.
While you work toward a large fund, don’t neglect debt pay down. This reduces your expense burden.
Sometimes, expenses can overwhelm our emergency fund, that’s why insurance is so important. Make sure you have adequate insurance (think Goldilocks, not too much and not too little!)
Show Notes
If you want to get in contact with me to ask a question, you can email me at shaun@teachermoneyshow.com or you can leave me a voicemail at https://www.speakpipe.com/teachermoneyshow