Emergency Funds 101: You’re Screwed If You Don’t Have One

This episode, learn everything you need to know about emergency funds—aka the financial cushion between you and life.

Links: 

 This episode is brought to you by BetterHelp. Give online therapy a try at

George Kamel is a personal finance expert and co-host of The Ramsey Show. Following Ramsey’s proven money plan, George went from negative net worth to a millionaire in under 10 years. His goal is to help people spend less, save more, and avoid money traps so they can live a life with more margin, options and freedom.

This channel will simplify complex money topics, bust money myths with actual facts, and debunk the stupid financial advice you're seeing in your social media feed. All with a healthy dose of pop culture, humor, and snark.

[PaulKatrina.]

At the very least, I now grasp the concept of leverage. Creating wealth and financial freedom isn't as tough as many people believe. Building wealth and remaining financially stable indefinitely is a lot easier with the appropriate information. Participating in financial programs and products is the only true approach to make a high income and remain affluent indefinitely.

[whatsleft]

My mum didn't feel well on a Tuesday two years ago. That Sunday I had the phone call to come 220 miles home as she had hours to live. I phoned my friend to lend me the cash to train home as I wasn't getting paid for a week. Luckily they were able to and I got there in time to give her a hug and tell her I loved her. It's an extreme example but life can turn in an instant, please try and build that fund.

[williamsemily]

So grateful for an emergency fund! In the last 4 months I had $5, 200 in car repairs, $1, 000 water heater replacement, and $4, 000 furnace repairs and replacement. I was able to pay all in cash and still have money saved if something else happened. Definitely was emotional going through all that money, but I’m grateful I had it all for these unexpected life events! 😅❤

[geminiblue]

You absolutely are screwed, especially in this job environment. I gave all of myself to a job for two years. Without any warning, they let me go. Everyone else panicked "what will you do?" I said that I was going to take my time, redo my resume, and wait for a job I really want. I am so very grateful and thankful that I had my fund set aside. I was able to survive these past 4 months without panicking. I am starting my new job next week, and I am happy and grateful. Please, please, please do not count on your job. It could be taken from you with no notice like me.

[markamark]

I’ve saved 25k for an emergency fund. It has helped tremendously. No debt other than a 4% mortgage @ $1400 per month

[Tehui]

Dave Ramsey described an emergency fund as 'defence'. And he described investments as 'offence'. I love that analogy.

[aaden]

I’m a single firefighter with no dependents, 20 years old and almost done paying off my car then moving to the mortgage!

[dreamwe]

My last emergency was a car repair & I initially panicked because in the past I never would have had the money saved. This year I made it a purpose to fund a 3month emergency fund & I was so thankful. I had to laugh at myself because of the panic that a minute later turned to relief when I told myself Hold On we have the money for JUST this!!! Wheww I’m on to funding for 6 months now being a single mom

[BrianaBudgets]

I’ll have my 5 months fully funded by this weekend! My last emergency was some work I needed done on my car and I was able to take care of it all in cash. For the first time in my life!

[andersnielsen]

Have 12 month locked.. Never taken a single dollar from it, since 1995..

[jonathanfelczak]

My wife and I were driving away 3 hours for our 1 year wedding anniversary weekend. When our car broke down 2 hours from home! And thanks to our emergency fund we were able to get a hotel room in that city(with a debit car!). But we were unable to get a rental car to drive home because we didn’t have a credit card, so we were able to take the train home. We had to ship our broke down car to our house and got it looked at, the transmission had gone out. But thankfully we had $6K in our car sinking fund and $12K in our emergency fund to buy a used car in cash. And it only cost us 1 month of investing and putting extra on the mortgage. Thanks to George and the rest of the team at Ramsey, this video is really important and after going through that, everyone needs an emergency fund.

[AthaLO]

My last emergency was obtaining full custody of my daughter. Worth every penny spent.

[NeedyForSpeedy]

My water heater blew a few days before a party I was hosting. $1900 from my emergency fund and life went on!

[jessicabender]

My job cut the prn 30k worth of needing me, serious illness leading to another 9 k loss. I totaled my car, my microwave blew, my van battery died, and my gas range wiring caught on fire and is useless. Our house sunk and now needs piers. The dog had surgery. Oh and a storm made us replace the roof completely! All in less than 3 months. I worried about things, but i slept comfortably knowing i can pay for each item with margin left in the emergency fund by tens of thousands.

[samanthaberch]

Our dryer went out 3 days ago and that was a great use of the funds for the repairman

[AbidingHopeMentalHealthCoach]

My last emergency was a flat tire. I had a dummy, which I installed (or rather, since I was driving Uber, they paid a tow truck guy to come and install it for me—since my jack broke I couldn’t do it myself). I drove to the only place I could find open on a Sunday, which was a used tire store. I had over $1, 000 in my car repair fund (yes, I have a separate fund for that, from which I pay for all car-related repairs or maintenance, including oil changes and new wipers), and I only paid $120 for two slightly used tires (since the other front tire repair as pretty bad too)l, but the back ones were fine). I could have paid for new tires, but Les Schwab wasn’t open, and now I’ve got a relationship with the used tire place. So yeah, it was an inconvenience, but it wasn’t a big deal. I was on the road not long after, driving more Uber riders around.

[snapdragon]

Last year was an emergency year for me. Washing machine packed up, husbands car packed up a week before a camping vacation, part of my roof fell in, a window broke and needed replacing, my daughter had a car accident (she was ok but her car was written off) and my father became seriously Ill. I had an emergency fund and made it through with only a small amount going on credit. I am now trying to rebuild my fund fast.

[kortneycrosby]

Last month my husband and I spent around 5k in true emergencies, after not having any emergencies for two years prior. An infected tooth that required emergency dental work, plumbing that needed to be replaced, a flat tire on the way home from work, a check engine light that needed to be addressed, unexpected funeral expenses... it was a rough month, but we were able to weather the storm financially because we had a healthy emergency fund set aside. Here's to hoping that trend does not continue over into December!

[LoveOnTheEdge]

We got garage doors from Alibaba because the doors were so expensive locally (Not in US). The doors lasted less than 3 months before breaking. We had to get new doors since the garage wasn't accessible from the outside. It cost us a little over $8k. We had the money but I just hated to spend it.

[pipetime]

My wife went to garage this afternoon and came right back in, the hot water tank was leaking. I will have a guy here tomorrow afternoon to replace it. I'm estimating 12 to 15 hundred, an inconvenience now that would have been an emergency 3 years ago.