I Think I Need a Bigger Emergency Fund Since I'm Self Employed

I Think I Need a Bigger Emergency Fund Since I'm Self Employed

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[teesellz]

He thinking the right way because when you have a family u need to have all the funds u can with what’s going on in this world right now

[Thecrazynecklacelady]

Paid off my car Sunday!!! Feels great😍

[SimonSaysyo]

3k a month minimum as a personal trainer? Before tax? Yeah, up that emergency fund. Especially in our climate today, Get that fund up before a second shutdown.

[JesusisKing-]

I’ve worked as a personal trainer in the field for many years. I’m not sure if he is being contracted by a gym or if he runs his own gym, or something else. Anyone who has worked in this field knows how your income can strongly vary especially in disasters. I’ve had half of my roster being taken out because of a hurricane. Usually people will cut personal training first out of a budget when things get tight.

All that being said. I really have empathy for you Patrick. I would pray and ask yourself what is best for your family. For my wife and I, we had a bigger emergency fund and it helped us get past this pandemic because the personal training industry was majorly impacted and we weren’t even allowed to work.

I understand Dave’s point of view and he’s right of course. I would just pray and consider what’s best for your mental health and your family.

God Bless you Patrick!

[omyota]

I adjusted Dave's advice on this one too. I'm in sales, income fluctuates hugely just on a normal basis, I have a mortgage to pay which would soak up almost all of the 1k emergency fund just on it's own.

I crunched the numbers, and calculated that the extra savings I kept above Dave's recommendation cost me $200 in interest over the course of the time it took me to pay off my debts, other than mortgage. With that information, I made an informed and intentional choice to pay the extra in interest and keep a greater amount in my emergency fund.

That's the key, live and budget with intention.

[DeionSardines]

Emergency fund level 1-$1000
Emergency fund level 2-$5000
Emergency fund level 3-$10, 000

[eviewesner]

I'm with Patrick! We were in his shoes and our transmission went out. That put us back into a cycle of debt!

[artk]

I saved up all of my yearly expenses for one year as my emergency fund for being self employed. I still never feels it’s enough.

[cammims]

1k is not enough in these times. $2500-$3, 000 is more like it to be Worried Free!

[gamerji-li]

$1k wouldn't cover a month's expenses, but $3k would for us, so I think it can make a huge difference. After having been laidoff twice, I couldn't reduce all the way down to $1k and still was able to pay off all my debts. Having a bit more padding to at least be able to cover 1 month gives peace of mind, especially if your debt repayment plan takes more than a month from now with gazelle intensity. Like yeah a lot of americans don't even have $400, but I survived both my layoffs because I had a couple thousands in my emergency funds.

[dpkallday]

$1000 is not enough. I recently had a car repair that cost $1200. Luckily I keep way above the recommended $1000 that Dave says to have.

[.Koreans.American]

I also feel the same. I got laid off this February and I feel like I need a bigger emergency fund

[bunnie]

Of course 1k is not enough. It's meant to make you feel insecure so you get out of debt faster.

[sharaguzzetta]

How long has Dave's emergency fund been $1k? The whole 30 years? 30 years ago $1k WAS a month of income. Inflation makes it so $1k doesn't cut it for many emergencies.

[Recovering_Californian]

I'm self employed. My emergency fund (step 1) is $3K. Dave's plan is a good guideline. Doesn't mean you can't adjust it to fit your individual needs.

[salemthorup]

I feel like I needed to hear this discussion 10 years ago or more. Not sure why it took this long to click. I want to cry, but also I guess I should feel relieved.

[MikeyFFA]

I agree with Rachel that the baby steps should be 1 month of expenses. That's what I did.

[GamingTaylor]

$10k "Emergency" savings is the minimum in my opinion.

[truthseeker]

I keep 4 to 5 months of expenses makes me feel safe, I survived two layoffs and a two bad jobs...So to me I wont go under 3 months

[cowboycody]

It's a $1000 emergency fund because it is relatively easy to save up $1000 fairly quickly with some disipline.