Money Guy Show How to Build an Emergency Fund the Right Way
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Jun 19, 2024 Learn how to effectively build an emergency fund while balancing personal and financial considerations. Gain insights on managing income sources, planning for a home purchase, and strategies to overcome challenges in saving for unexpected situations. Dive into the importance of genuine emergency reserves and the hosts' debate on event dress codes.
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Retirement Cash Reserves
- When planning for retirement, hold 12-18 months of living expenses in liquid cash.
- This "cash" should be readily available, like in a high-yield savings account, not tied up in investments.
Prioritizing Life Goals
- When making big life decisions, consider your overall goals, not just finances.
- "Money is only a tool," so prioritize what truly matters, like family.
3D Financial Planning
- Create three financial plans: a dream plan, a realistic plan, and a worst-case scenario plan.
- This helps you prepare for different outcomes and make informed decisions.