When Should You Use Your Emergency Fund?

Money Guy Show

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

Education, Investing, Business

4.7 • 3.1K Ratings

🗓️ 13 September 2021

⏱️ 35 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

It can be hard work to build up a 3-6 month emergency fund - so when should you actually use it? We'll walk you through that question and more in today's Q&A episode! Subscribe on YouTube! Download FREE Financial Resources from the show Sign up for our Financial Order of Operations course Let’s make sure you’re on the path to financial success - then help you stay there! The Money Guy Show takes the edge off of personal finance. We’re financial advisors that believe anyone can be wealthy! First, LEARN smart financial principles. Next, APPLY those principles! Then watch your finances GROW! Visit our site for more info. Instagram Twitter Facebook TikTok Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	It's Brian Preston, the money guy, restoring order to your financial chaos, retirement,
0:07.0	investing, taxes.
0:09.0	You've got financial questions, he's got financial answers.
0:12.6	It's Brian Preston, the money guy.
0:15.6	All right, this next question is from Kristen.
0:18.7	Kristen said, my husband and I are working on building our three to six month emergency
0:22.8	fund.
0:23.8	My question is, when is it okay to tap that money?
0:27.1	Put a down payment on a home, be an acceptable reason.
0:30.3	I feel like I get this a lot, Brian.
0:31.6	And I see it on both sides.
0:32.7	I see folks that build up their emergency fund and they use it for everything.
0:36.4	Like this, everything.
0:37.4	And then I see those folks that build up an emergency fund and it sits there and they
0:40.9	never, ever, ever, ever, ever, ever, ever touch it.
0:44.6	It just sits there and sits there and sits there.
0:47.2	What's the best way to think about it?
0:48.2	How should an emergency fund realistically be used?
0:51.3	Well, I mean, I want it to be something you're not.
0:54.3	It doesn't need to be part of your clearing account that's on a monthly proit basis.
0:58.4	You know, I know we're saving.
1:01.0	The guys tell us to save 20, 25% of our income.
	...

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