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Money Guy Show

I Drained My Emergency Fund - What Do I Do Now?

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Education, Retirement, Moneyadvice, Investing, Savingmoney, Personalfinance, Business

4.62.8K Ratings

🗓️ 17 June 2024

⏱️ 25 minutes

🧾️ Download transcript

Summary

"I have had to tap into my Emergency fund. I still have roughly 1.5 month of expenses still in savings. So my question is do I pause my investing to save back up or do I just not invest as much?"

We'll walk you through that question and more in today's Q&A episode!

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Transcript

Click on a timestamp to play from that location

0:00.0

Oh no, I drain my emergency fund. What do I do now?

0:04.0

Brian, I am excited because life happens and we get to speak to these kinds of things

0:16.0

we get to answer questions that you guys care about so right now if you have a question you want us to weigh in on, you want to get our take on it,

0:23.7

get in the chat right now, leave your question, the team is out in the wings,

0:28.3

collecting those questions.

0:29.9

With that, producer Ribi, I going to throw it over to you.

0:33.0

Yeah, we've got a good question to start us off from Ninjo.

0:36.2

Ninjo.

0:37.2

It says, I have had to tap into my emergency fund.

0:41.7

I still have roughly one and a half months of expenses still in savings.

0:46.7

So my question is, do I pause my investing to save back up or do I just not invest as much? I thought this was a great question and a great

0:57.8

financial order of operations question. So what do you have to say to him?

1:00.5

Well here's what I like, Ninjo, you had an emergency fund. So first, let's start there and say,

1:06.2

kudos to you for having funds available when something happened. Now, you did not say what caused you to drain your emergency

1:13.8

but I'm going to go on a limb and assume it was an emergency.

1:17.1

That's awesome. That's awesome that's there.

1:19.0

Well now in the spot that you sit you have one and a half

1:22.3

months of expenses currently

1:23.5

sitting your emergency fund here's what makes me nervous what happens if another

1:29.4

emergency happens what happens if there's another unknown unknown that comes your way. I worry I'm

1:36.7

concerned that you may be a little too lean so when I think about my personal

1:41.8

financial situation and I would encourage when you think about my personal financial situation and I would encourage when you

...

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