HOW TO BUILD A CD LADDER | Emergency Savings Fund

Ever heard of a CD ladder? I hadn't until recently. Then I dove deep into this unique strategy to better optimize my savings and extra money, and I'm digging it! I had to share it with you guys. I brainstormed a couple of ways you could use this to boost your savings, this video shares how to build a cd ladder for your emergency savings fund.

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Hey I am Tess Wicks, I’m a financial educator and coach and the founder of Wander Wealthy, a channel and community helping women in their 20s and 30s get inspired and get results for their personal growth, money and travel goals. On this channel I provide educational and lifestyle content around personal development, personal finances, and exploring the freedom of travel.

Disclaimer: The information in my videos and on my channel is general in nature and is not intended to be used as personalized financial advice. Prior to implementation, you should consider your personal circumstances and seeking one-on-one help from a professional.

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FTC: Video sponsored by Ally.

[vjiggy]

🤔 i think this makes the most sense, for utilizing funds from ones emergency 🚨 funds. 💰

[geoffgordon]

Start with three 3-month CDs. Invest in a CD once a month for 3 consecutive months. You have a CD mature each month.

[kentanderson]

Thanks for the video. Like you, have never considered CDs until now due to low interest rates. Your explanation was great... actually perfect. Pretty simple once you get it, thanks. Isn't YouTube awesome?!?!

[albertcastro]

My head hurt 🤕 watching this at work. But watching it again. LOL !

[LastSider]

If you need to cash out your money either early or during your grace period, for some banks, you have to call your bank from weekdays and during working hours. I dont do cd ladders anymore. ATM, I have a Tbill ladder with my brokerage account, since there the money cash it out automatically and I dont have to deal with a government website.

[keepdancingmaria]

I have an emergency fund, and I think that's important to get first, so that we aren't faced with selling investments, paying a fee to close a CD early, or going into debt, in order to handle an emergency.

That said, I'm currently trying to build a second EF, one that will be designated an Income Replacement EF. And I'm using a CD ladder to build it. I'm pulling from the EF and also pulling from my monthly income to do it.

Goal is to have a monthly income CD maturing every month for 5 years. So, every month. I open a CD, no matter how small, it gets done every month.

It's a long term project for sure. But If I don't ever start, I won't ever get there!

[AmericanPatriotANomad]

Thank You and I'm rewatching this video yet again. I'm proud of myself I just started a CD Account. It's not much but I'm proud of myself!! I will be opening another yet will still deposit small amounts monthly. I'm praying I can get to 12 CD accounts. We all can and will do this. Take Care!

[Godsdaughter]

is there a certain amount to put in to cds does it pay to put hundred or only thousands

[TOPTRAVELVLOG]

Very beautiful video. Nice creation. Great work friends.

[parsellart]

Great idea. I will look into this. Thanks

[davidsmith]

Hi Tess! Great content! I love your channel! I just started my 3, 6, 9 and 12 month ladders and anxiously and impatiently waiting to next month when I can start the new batch! Ha! Do you think it is possible I can get your Excel spreadsheet that you use in the video? That would be super helpful! Thank you!

[gymnastReena]

wow. brilliant. i might try this or at least some variation

[TheJasechChannel]

Good video. I've been in banking for 20 years. You explained it well

[lvlc]

I like cds... but couldnt use them with my emergency funds... why i dndnt though of this! Ofcouse bec you had to tell us! Awesome!

[ucre]

Great info, but why is this only for Millennials? Do other generations not need to know this?

[Lovelynrose]

I’m using this method to build the 12 month emergency, The CDs I chose allow you to add money to them while keeping money locked in. So the structure will be in place and I just add money to it until it’s up to the amount I need

[PatrickClark]

I currently do a small CD ladder, but not with my emergency fund. My emergency fund is for much more than just an income disruption(crashed car insurance doesn't cover, Unexpected home repairs, and expenses that may be beyond a months expenses) I do have a long-term goal to do just what you propose in this video. The cool part about Ally, is their CDs are beyond their standard savings account rate with certain CDs, but not all. The other cool part, is every time you roll it over, and redeposit, they give you a 0.10% interest boost over the normal rate.

[Delid]

Would have been nice to hear you talk a bit about the process of getting taxed on the capital gains if you take the interest you made out to put into your regular savings while re-investing the original principal. Let folks know that all that intrest is not all yours to keep.

[albertdeboy]

CERTIFICATE OF DEPOSITS ARE FDIC INSURED, AND YOU DON'T LOOSE A PENNY OF YOUR INITIAL DEPOSITS.

[iamdavis]

I just put my emergency fund into the ally online savings for 2.2%. Done. No fuss, no tricky laddering, no tying up the money.