This week we focus on one of the steps in our 7-Step Money Foundations Course – we are talking about your fully-funded emergency fund.

We cover these steps in both our FREE online course as well as our new workbook, Shut Up and Budget.  

On today’s show, we are just going to hit some of the high points.

YOUR SAFETY NET

One of the most important steps in laying a proper money foundation is to have safety nets. 

YOUR FULLY FUNDED EMERGENCY FUND IS YOUR SAFETY NET. 

So what is a fully-funded emergency fund?  

A fully-funded emergency fund is, at a minimum, 3-6 months worth of living expenses. 

Notice we said EXPENSES.  Not income. It is how much it takes for you to support your 4 walls in one month.  What you need to live on. 

3-6 months is just a ballpark and, my recommendation, if you are self-employed or expecting a lay-off or your income in sporadic – is to have 12-24 months saved. 

This fund is for TRUE emergencies:

  • Job loss
  • Illness
  • Natural disaster

 

It is not for your family cruise to Cabo San Lucas or your daughter’s wedding….

WHICH ONLINE BANK ACCOUNTS ARE THE BEST

So where do you park this money?  

The accounts should be accessible – not too accessible.

Lots of banks out there right now are advertising “high-yield” savings accounts. 

The interest given is typically over 2.%  

Curt and I decided to see if we could find the one with the highest interest rate and the best overall features….

OUR TOP PICKS 

Curt’s Pick: 

Discover Online Savings Account

Rate offered: 2.05%

Balance Required: $25,000.00 for $200.00 bonus 

                           $15,000.00 for $150.00 bonus

(Bonus credited in Sept 2019 and you must have the balance in the account when it credits) 

No monthly fee

For Comparision: 

Interest earned on $25,000.00 at one year $517.34 + $200 = $717.34

 

Wendy’s Pick

 

Wealth Front Online Banking

Interest Rate: 2.57% Int 

No fees 

$1.00 minimum to open

 

For Comparison: 

Interest earned on $25,000.00 after one year = $650.12

 

YOU CAN FIND OUT MORE HERE: 

BANKRATE

NERD WALLET

 

RESOURCES 

7-Step Money Challenge 

Book – Shut-up and Budget 

Etsy Store – downloads and printables.  Workbooks, worksheets, budgets, debt and savings trackers….based on our 7-steps and a great companion to the book. 

NEXT WEEK – WE HAVE A SPECIAL SHOW!!! 

 

Join our Round table discussion with Chelsea Brennen of Smart Money Mamas and Carla Titus from Wealthworthwithin…..it’s awesome conversation about balancing it all as we journey to Financial Independence.

 

 

WE NEED YOUR HELP!

THE PEOPLE CHOICE IS STILL OPEN FOR NOMINATIONS!

To nominate our show for the Plutus Awards Peoples Choice, click here and enter “Houseoffi.com” in the Best New Podcast of the Year category.

 

IF YOU NEED HELP WITH YOUR BUDGET….

SIGN UP FOR OUR 7-STEP MONEY CHALLENGE 

 

IT’S TOTALLY FREE – WE’RE NOT UPSELLING YOU ON ANYTHING ELSE. THIS IS SIMPLY US, HELPING YOU GET ON THE RIGHT FOOTING WITH YOUR MONEY.

It is a NO NONSENSE designed to take you step-by-step through your finances and build a solid money foundation so that you can reach your money goals.

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