WHY Dave Ramsey’s Emergency Fund DOESN’T WORK | Caleb Hammer

Video From ► “This Keeps 99% Of People Broke!” How To Get Rich - Caleb Hammer

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[magen-bn]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[robertsprague]

The $1, 000 was NEVER meant to be a long term emergency fund…The problem was when people started Financial Peace University, something as simple as a flat tire would throw them off track…The $1, 000 was meant to be a starter emergency fund til you can build up a fully funded emergency fund

[BodyByBenSLC]

He is right about the snowball, that's what I did. I few small wins helped me get going and motivated. I laid them out and laser focused on smallest, obsessed over it, everyday log onto website of debt holder and that number was in my mind. Took 10 years of poverty-like living but 3 weeks ago paid of 60 grand in debt! It can be done.

[eatpigsnot]

Dave recommends 3-6 months of expenses for an emergency fund. $1000 is a starter / baby emergency fund

[matthewsawczyn]

3:25 Caleb is so right -- most of people are in such bad straits that just basic, sane advice is gold

[garyhall]

All I can say is Dave Ramsey's baby steps helped me.

[asoggyburger]

I think the $1, 000 emergency fund is more of a habit forming achievement than it is a safety net. $1, 000 can pay for quite a few emergencies that may come up, and there are dozens more that it can’t. What I think Dave’s intention behind it is, is to start working that saving/investing muscle and to reach an achievement quickly to build momentum for the race that’s ahead of you. Realistically, a month saved is far better, but I don’t know how that would effect the rate of success or follow through. Maybe that emergency fund size should also be dependent on the situation, like the snowball vs. avalanche method. Just my thoughts.

[nikolai]

I was trying to pay down debt but because of Caleb I learned about the resources I needed and I am officially debt free for the first time in a decade this month. Caleb’s voice lives in my brain every time I go to make a stupid purchase and it has actually saved me so much money with that mindset.

[Tank-vidv]

Study - 60% of Americans can't come up with 1000.00 dollars.

Dave - Start with a 1000.00 dollars in your baby starter emergency fund

Critics - that's dumb.

what?

[brendonwhartonfit]

Meal prep? Caleb getting people wealthy and healthy out here💪🏼

[MrDeltasgremlin]

The comment around understanding what your relationship with money is, and where is going is a very insightful comment. This is so foundational to everything that they are all talking about. It's not just taking a passive interest in what you money is doing, you need to interrogate your fears around money; your insecurities.. all of it.

[GinaLoriDuncan]

Dave Ramsey is offering a guideline. Anyone who thinks they need more in the emergency fund, then save more. Sheesh.

[robertsheffer]

The 1, 000 is a starting emergency fund until you get out of debt. Part of the reasoning is to make you URGENT to pay off the debt, then build up to 3-6 months of living expenses afterwards.

[wan]

$1k is more than enough for a starter emergency fund.

$1k will buy a used transmission, will buy an HVAC repair, will buy a roof leak fix, will buy a new tire, etc.

[JGComments]

1 month in the bank isn't an emergency fund. That just breaks you out of the hand to mouth cycle so you can put bills on auto-pay. When you get TWO months in the bank, that's when you have money that you aren't counting on for the next month's expenses.

[chadbailey]

“Do you ever have people question if you’re qualified”… YES.

[mrbaboy]

$1000 emergency fund is just a win, like tackling/attacking the small debt first. You need those wins, just so you can see the progress you're making. And if you're car has a $1200 issue, $200 doesnt look so bad.

[MarcJesEmi]

Dave acknowledges that of course $1000 is not enough for anything but it’s the human psychology behind it. Small victories trigger habit and motivation.

[Tengokuarashi]

So its been stated the $1000 is just to give a buffer against needing to go back to using CCs if something small comes up. It was shown people who had to fall back on CCs when they first start the program get super discouraged. Once they get to the step for an actual emergency fund, its supposed to be the equivalent of 5-6 months expenses

[Keeks]

I don’t follow Dave Ramsey, but his system works for a lot of people and I’ve incorporated some of his principles into my own. No system is best for everyone.