Emergency Funds in 2021: Best and Worst Places – Ask Sebby

by YouTube Team

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

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41 comments

wallenls1 March 12, 2021 - 2:38 am

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.

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CraftingKaria March 12, 2021 - 2:41 am

Nah bruh I’m spending my stimulus on strippers!! 🤣😂😬💰💰

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Anestis Dalgkitsis March 12, 2021 - 2:47 am

6. Locked in stablecoins.

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Shady March 12, 2021 - 3:03 am

i keep my emergency fund in GME.

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Aek Sinsang March 12, 2021 - 3:04 am

Over $5000 I invest as otherwise inflation erodes it

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Spydah3kgt March 12, 2021 - 3:09 am

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.

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QTMarkus88 March 12, 2021 - 3:10 am

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.

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zach cawthorn March 12, 2021 - 3:21 am

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.

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- March 12, 2021 - 3:48 am

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.

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Nick Doyle - Achieve Financial Independence March 12, 2021 - 4:26 am

I like LMCU max checking. 3% on 15k with a couple requirements.

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Fernando Palestina March 12, 2021 - 6:30 am

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.

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Will Mitchell March 12, 2021 - 6:40 am

Wait a minute…sebby u have good credit and all the credit cards. Please tell me you’re not still renting a house.

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kasnif pierre March 12, 2021 - 7:02 am

I like options 3 and 4 especially because I already have an index fund

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Seong Jin Kim March 12, 2021 - 7:35 am

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.

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Reuben Morris March 12, 2021 - 8:49 am

0.6 APY? Where?? American Express just cut their savings rate to .4%

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Charles Gomez March 12, 2021 - 3:06 pm

It's best to have 3-6 months cash on hand in a savings account, for emergency purposes 😀😀

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Charles Gomez March 12, 2021 - 3:12 pm

Preferably 3-6 months worth of wages-was always recommended by economists 👍👍

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Gordon GT March 12, 2021 - 3:21 pm

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.

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Grant Hemstreet March 12, 2021 - 3:51 pm

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

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Xabier Landa March 12, 2021 - 5:35 pm

Great video, 👌🏻

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Justin Francis March 12, 2021 - 5:38 pm

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).

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Lazayvion Hammick March 12, 2021 - 6:01 pm

The picture of the knife was funny to me 🤣

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Marc Amorese March 12, 2021 - 6:17 pm

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.

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T Kay March 12, 2021 - 9:56 pm

3 & 5 sound very viable for me. Thanks Sebby, great video

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wewhoareabouttodie saluteyou March 13, 2021 - 1:27 am

If I knew I was losing my job, credit card churning would never be an option.

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Dimitron84 March 13, 2021 - 3:09 am

Thoughts on Roth IRA for emergency fund? Post tax and if you don’t have an emergency way better growth for a managed account?

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J Tarq March 13, 2021 - 5:39 pm

Very bad advice… options 4 and 5 are not appropriate for emergency savings.

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Victor Vale March 13, 2021 - 9:13 pm

ladder I bonds

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Nathan Withers March 13, 2021 - 10:06 pm

Are you going to talk about HMBradley's credit card?

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Gordon Mccracken March 14, 2021 - 12:41 am

AMEX points as an emergency fund ?

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Fifi Finance March 14, 2021 - 12:45 am

Thanks for uploading 💪

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dugroz March 14, 2021 - 4:09 am

Not seeing any chapters …

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Sixty_one _60 March 14, 2021 - 4:59 pm

bet most peoples emergency funds is their parents.

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Todd Westover March 15, 2021 - 12:34 am

Why not YOTTA!?!

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Angela Su // Personal Finance March 19, 2021 - 6:30 pm

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!

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Jmagnum8989 March 23, 2021 - 6:25 am

I do number 5

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Matthew Schwartz March 24, 2021 - 7:47 pm

Referral link is not working fyi

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Matthew Schwartz March 24, 2021 - 7:57 pm

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.

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Gold Is Real Money March 28, 2021 - 9:22 am

I have my 2 year emergency fund in physical gold and I have my rainy day fund in Yotta Savings.

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Totally Trent! April 8, 2021 - 10:20 am

Just FYI the chapters didn't come through on this video.

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Brandon Skwira May 11, 2021 - 11:46 am

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.

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