How Much Should You Save to Survive a Recession?

How much money should you save to recession-proof your finances?

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[victorandres]

"Let's say your name is Mario and you're a plumber" 😂🤣

[james-p]

Excellent advice. For my own situation, I keep 9 months of living expenses in a separate money market checking account that never gets used. It's just there if I need it. I could put the money in with my investments, but exactly what you said: A recession will likely cause the investments value to drop, which is the worst time to sell some off for living expenses.

I think 3 months is the bare minimum anybody should keep aside. 6 months is ideal for most people, IMHO. Another factor to consider is age. Older people (like over 50 or so) should probably keep a year's expenses aside b/c it's harder for them to find new employment.

[Aidan_Au]

Sebby, you probably can do an updated version of this for pandemic or other uncertain times

[therichmillennial]

I think that this upcoming market correction will be a result of a huge amount of defaults on loans!
Sebby, what makes you chose Austin?

Checkout my IG: @the.rich.millennnial

[devchatterjee]

Do more personal finance vids! Good stuff!

[SolidLiquidFox]

If we are left without a shirt...can we replace it with black v neck shirt?

[dominick]

Damn you pay $50 for phone? You should look into redpocket or mint mobile. I pay $17 a month

[knpstrr]

It should be mentioned there is still "some" risk with FDIC insured money. What I mean by that is, if a bank goes under it can be many many months until FDIC insures pays out. You will be made whole, but it won't be the day after the bank croaks, which may be when you need the money.

[bigboywasim]

It is always good to have any emergency fund at least six months, keep some cash at home for emergencies and a small amount of physical gold and silver for high inflation, hyperinflation or massive deflation protection. Stay out of debt as much as possible.

[szearc]

Hey Sebby, can you do a video on those 2-5% bank account options requiring more work? What do you see as the best bank accounts for cash savings?

[stefanbatic]

Can you please explain how to use the amex platinum uber credit with uber eats with the change that uber implemented?

[falco]

Do you get taxed for the "Bonus" money that you get from banks from opening up a new checking account and getting the bonus?

[ericwilliams]

I just wanted to give you a huge thank you Sebby. Was watching some of your vids last summer, even though I knew lots about credit, your chart with the 5 factors really taught me stuff. After huge problems & losing everything in 2009-10, I got my first few accounts in 2015, but I stalled, work got slow(I’m a chauffeur). Was lazy and down to my last $50 some days. Then I had a busy July, paid off my balances, maybe 4K out of then boom! A few pre-approvals, plus a Platinum Amex, and I had over $40k in limits, after having the same $7, 300 for 2 years.

[ericwilliams]

It’s amazing what can be accomplished once you know the rules of the game, and how to play it. I will maybe fly First class to Asia this year, yes it will still cost me $1, 000+ of my own cash, but it will be a great experience. The only thing I’ve done wrong is my Amex is a charge card, and I went nuts trying to flip tickets thru StubHub. Well when the bill is due now but show is next September, doesn’t matter if you profit, you’re debt load is higher today. Still, credit hit a high of 733, now 685 but that’s OK with 6 new accounts in 5 months. Thanks again sir

[alteredillusions]

I am a Traveler and have also considered Thailand during the recession.

[davishlamburnt]

Thanks a bunch for this kind of content Sebby.

[szearc]

In addition to the minimum cash needed to survive in case there is a job loss, from an investment perspective its worth keeping some liquid cash on the sidelines in case an opportunity arises to invest in a property or in stocks if there is a market crash.

When there is a volatile market and especially when there are more risk factors emerging, selling off some of your stocks into strength for profits and raising cash is kindof a prudent idea imho... I am currently holding about 30% of savings in cash.

[kayjoe]

How long until you things hits the slumps ? Interest is going up and the dollar is falling. Trump is bringing us down the drain.

[shawnparker]

Say you are Logan and you are an X-Men if with your Adamantium Claws maintenance you still need a phone ..

[fahimhaque]

Can you finally talk about your collection of Whisky that you always have in the background in a video?