Dave Ramsey Responds To $1,000 Emergency Fund Not Being Enough In 2023

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[linuxsurfer]

$1000 is not enough, but it's more than $0, which is where many people are. It's a great starting point.

[natertott]

I really think the $1000 is more about a mindset shift. Its amazing how many people don't have $1000 saved. I didnt when I learned about Dave's system. But when I got that first $1000 saved, it changed my entire financial world.

[oscarmedina]

I saved up $1k in about 2 months, and the very next month my dog was diagnosed with a small tomour that is going to cost $1500 for the surgery. That $1k gave me more hope and peace of mind knowing I just needed $500 more compared to the bigger bill. It's not the best saving, but it's a nice piece of mind to have $1k just there.

[bev]

What the saddest part is, is that since 2003 Americans still don't even save a thousand dollars!!

[ronaldnichols]

Being able to save the $1, 000 is a psychological win. The first win a person can accomplish. That gives a push to follow through with step 2.

[Pastoresfalcon]

My wife and I paid $50k in debt in 18 months, and the $1k emergency found helped us to keep the budget when I had to go to the dentist because of a tooth ache. Thank God for this program ❤

[anonanon]

I decided to make my emergency fund about 2000 to cover one mortgage payment. Just in case any problem ever happened with my paycheck that month. That made me feel safer

[TheRealCcE]

Does Dave have to tell you everything? Increase it if you want.

[TheFirstRealChewy]

FYI, if you keep having to spend the $1K every year due to an emergency, then its not an emergency. It's an annual expense that you need to budget for.

Also, stop buying Christmas gifts for people when you don't have $1K to your name. Trust me, they will be happier not having to give you $1K after you made them feel guilty by reminding them of all the gifts you gave them.

[tomcripps]

Most of the people who are in the debt program never saved $1000 and that's part of the problem. So 1000 is a good even ceremonial number. It gives you some confidence.

[maxrice]

If you plug $1000 into an inflation calculator from 2003 to today, it would be $1600 so you could save that if you are seriously a numbers guy but I think the $1000 is a great morale booster for people when they save it up.

[claytonmarkin]

Baby step one is also supposed to be a quick win. The whole debt snowball system is based around small wins compounding into big wins. The $1000 emergency fund is a win that people can get in the first couple months of this process, which helps motivate you to continue on.

[KourttneyL]

I also think that when people start doing this, they see how fast they can save up 1k, and helps see the bigger picture of being able to pay off debt faster than they thought!

[armydude]

When my wife and I started FPU, my wife looked at me and said she will NOT be comfortable with only 1K in the bank as emergency fund. We talked about it and came up with 5K as the number. This gave my wife peace of mind and gave me a starting point for implementing the FPU plan. The big thing people forget is the PEACE part of FPU. You can change the baby steps and increase the amounts if needed for established peace ( let's say in your marriage) during the process. If both of you are not on board, you will never read the destination you set out for.

[cynthiastrain]

I started with Dave four ago...I am debt free..and owe a small amount on my home...what ever you do stick to his plan it works, 🤗

[AdamB]

My wife and I did Dave-ish, in one small way. We followed his baby steps, except for we had a $3, 000 baby emergency fund. The reason we did that was we had more than that in cash when we got married, but had $70k in debt. We just felt more comfortable keeping $3k instead of $1k.

I'm not saying we are right. Dave knows more about finances than we do. But it made us more comfortable, and we paid all the debt off in 11 months. In some ways I feel guilty that we deviated, but we also kept our head down and pushed forward. So I don't feel *that* guilty. :)

Thanks, Dave.

[xtreambackman]

i heard dave say it before the $1000 is not only a tiny safeguard but, it is to help you start learning to save which i think is the main point of the first thousand dollars. worked for me !

[malikking]

Only Dave has to ability to make me emotional about finances. He's a life saver

[robedmund]

The pandemic taught most people that $1000 is not enough. What's stopping people from increasing the amount? Sacrifice if you have to.

[Ak-ram]

I have 100k saved and still feel like I need more and strive to save everywhere I can and work as much. Don’t ever let go and get comfortable. Stash that cash and forget about it.