The best and worst places to store your emergency funds in 2021. Check out HMBradley: Thank you HMBradley for sponsoring the video! Click “Show More” to see Ad Disclosure
#EmergencyFund
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41 comments
Look into JEPI etf from JP Morgan. It’s a monthly dividend etf that stays pretty flat with a 6% yield. Good place to park money.
Nah bruh I’m spending my stimulus on strippers!! 🤣😂😬💰💰
6. Locked in stablecoins.
i keep my emergency fund in GME.
Over $5000 I invest as otherwise inflation erodes it
50% in a managed mutual fund based around S&P500, 25% in my personal stock picks (companies i know, products i use, reopen plays, etc), and 25% cash.
I have a $5k emergency fund in an easily accessible HYSA and the rest – the “lost wages” or “long-term savings” – in my self-made dividend portfolio. 16 stocks across 7 sectors. Averages around 4% and is fairly safe. Plus, low betas.
Clicked on hmbradley link and it says can't find referral link/affiliate link on their site☹️ wanted to give you the support. Might want to check that out.
Good rule of thumb for emergency fund:
(Your monthly expenses) * (current unemployment rate)
The higher the unemployment rate, the longer it would be to find a job if you lose yours.
I like LMCU max checking. 3% on 15k with a couple requirements.
I have never been a saver. But I know that has to change. My girlfriend and I live together. And she has always been saving. Our furnace broke down in the middle of February and we had to pay $4,500 to get a new one installed and I was left in sho k that I had no money to pay for this emergency. Luckily my partner was prepared for something like this. Without a doubt an eye opener.
Wait a minute…sebby u have good credit and all the credit cards. Please tell me you’re not still renting a house.
I like options 3 and 4 especially because I already have an index fund
IMO, emergency funds should be sufficiently liquid and also diversified. I think people should have a little bit of everything. For example: 5% in physical cash, 25% in checking accounts, 70% in high yield online savings accounts.
0.6 APY? Where?? American Express just cut their savings rate to .4%
It's best to have 3-6 months cash on hand in a savings account, for emergency purposes 😀😀
Preferably 3-6 months worth of wages-was always recommended by economists 👍👍
Thanks, Sebby, intersting ideas. I appreciate that you take a conservative approach instead of suggesting we throw every dime into the stock market as suggested by another YouTuber. But the calculator at the HM Bradley website is really wonky, kept me at Tier 1 even when I projected saving 80% of my deposit…so it kinda makes it look like a gimmick (or maybe even bait and switch) and so I`ll pass on it. Oh well, keep up your good work.
What about Roth IRA? you could essentially treat it like a high-interest savings account – dipping into your contributions when you need the help and yet it earns for retirement when you dont
Great video, 👌🏻
To me, emergency fund needs to be liquid. Emergencies hit instantly, so an emergency fund should be available instantly in banks that offer dual checking & saving accounts with high yields. This way the money is generating interest and an instant transfer away. Emergency funds in the stock market is not liquid enough. To sell stocks and transfer the cash to a checking account would take anywhere from two days to a week.
For the past year, I have been keeping my money in Varo for a 2.8% APY on up to $10k, but they are changing it to 3% on $5k, so I am looking someplace else to house my emergency fund. HMBradley and Porte hit my radar, and I'll be trying Porte (3% APY up to $15,000 plus debit perks).
The picture of the knife was funny to me 🤣
I Bonds from Treasury Direct. Currently, 1.68% APY which beats most high yield savings accounts, particularly at lower balances. The interest compounds and is adjusted for inflation every six months and is state tax-free. Just can't touch your money for one year.
3 & 5 sound very viable for me. Thanks Sebby, great video
If I knew I was losing my job, credit card churning would never be an option.
Thoughts on Roth IRA for emergency fund? Post tax and if you don’t have an emergency way better growth for a managed account?
Very bad advice… options 4 and 5 are not appropriate for emergency savings.
ladder I bonds
Are you going to talk about HMBradley's credit card?
AMEX points as an emergency fund ?
Thanks for uploading 💪
Not seeing any chapters …
bet most peoples emergency funds is their parents.
Why not YOTTA!?!
Oof I know you're supposed to have a 3-6 months of emergency fund but low key I put all my money in stocks T_T It's like kinda liquid cuz I have Robinhood Gold and use margin, so I don't need to sell stocks to take out money. Nice to see broad indexes and dividend stocks on your list though!
I do number 5
Referral link is not working fyi
HM Bradley is a TERRIBLE system. To qualify for the savings interest, you have to drop the money in via direct deposit. So, transferring money from a bank account is somehow not good enough?! HMB will fail with this mentality. Super stupid and ignorant.
I have my 2 year emergency fund in physical gold and I have my rainy day fund in Yotta Savings.
Just FYI the chapters didn't come through on this video.
I like taxable brokerage accounts for emergencies if you’re in your 20’s or 30’s and your saving for for 50’s for an emergency. Cash is king for short term emergencies.