Ep 191: Rethinking Emergency Funds for modern times

12/09/24 • 37 min

rich & REGULAR with Kiersten and Julien Saunders

We’re still revisiting fundamentals and this week we’re asking: Is your emergency fund actually an emergency fund, or just a well-intentioned savings account collecting dust (and maybe a tiny bit of interest)?

In this episode, we unpack the truth about financial emergencies and reveal the flawed logic behind the old ‘3-months of expenses’ rule. Let’s be honest, climate change, unexpected job losses, and ridiculously high repair costs have made the classic “cash only” emergency fund advice obsolete. We talk about building a real safety net, one that's flexible, accessible, and addresses everything from the cost of repairs to those unexpected crises that inevitably spring up in life

Building an emergency fund isn’t about striving for perfection; it’s about protecting what matters most. We’ll provide practical tips, address common anxieties, and leave you with a renewed sense of preparedness – all without losing your mind (or your savings).

We discuss:

The Illusion of the "Checked Box": Why the standard 3-6 month emergency fund is inadequate for the unpredictable realities of 21st-century life
The importance of liquidity and accessibility: It's not enough to have the money, you need to be able to access it quickly and easily. We'll dissect the hidden fees and frustrating bureaucratic hurdles that can turn your carefully-saved emergency fund into a useless paperweight
More than just cash: We discuss the overlooked role of insurance, lines of credit, and community resources in weathering life’s storms. This isn't just about finances; it's about creating a comprehensive plan that addresses all dimensions of an emergency
The Multi-Layered Approach: Why cash is still surprisingly relevant, even in a cashless society.Real-life examples that illustrate why diversifying your financial institutions is no longer a "luxury" but a necessity
The Rebuilding Phase: A practical plan for rebuilding your emergency fund in the wake of a crisis. Because let’s face it, emergency situations aren't one-and-done

Links:

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We discuss:

The Illusion of the "Checked Box": Why the standard 3-6 month emergency fund is inadequate for the unpredictable realities of 21st-century life
The importance of liquidity and accessibility: It's not enough to have the money, you need to be able to access it quickly and easily. We'll dissect the hidden fees and frustrating bureaucratic hurdles that can turn your carefully-saved emergency fund into a useless paperweight
More than just cash: We discuss the overlooked role of insurance, lines of credit, and community resources in weathering life’s storms. This isn't just about finances; it's about creating a comprehensive plan that addresses all dimensions of an emergency
The Multi-Layered Approach: Why cash is still surprisingly relevant, even in a cashless society.Real-life examples that illustrate why diversifying your financial institutions is no longer a "luxury" but a necessity
The Rebuilding Phase: A practical plan for rebuilding your emergency fund in the wake of a crisis. Because let’s face it, emergency situations aren't one-and-done

Links:

Previous Episode

Ep 190: Is 'buy and hold' still relevant?

We took a mini-break (and you KNOW we needed it) but we're back, and today we're tackling the sacred cow of financial planning: BUY AND HOLD.

Let's face it, investing isn't a spectator sport and the pandemic proved that even the most "set-it-and-forget-it" advice can get messy. Plus research shows investors are holding stocks for less time than ever before. So this week, we’re asking if the classic "buy and hold" strategy is still the cornerstone of financial wisdom, or has the rise of day trading, sports betting, and cryptocurrencies rendered it obsolete?

Don't expect simple answers, because investor psychology isn’t that simple, but we promise some surprisingly insightful takeaways

We explore:

Why “buy and hold” is the American way and what that means in the era of instant notifications and market fluctuations
How the emotional and psychological realities of modern life challenge even the most well-laid financial plans
The rise of “bro-conomy” investing, and why the appeal of day trading and sports betting is harder to resist
How to use robo-advisors to tame your inner FOMO without losing your shirt (or your retirement funds)
The importance of financial literacy and diversification, beyond the simplistic "buy and hold" mantra
A peek behind the curtain into our own HSA investment strategy and a warning about the illusion of easy wins

Links:

The Three Pillars of the Bro-Economy via The Atlantic
Episode 171: Why you need a brokerage account

Next Episode

Ep 192: How we eat good without going broke

The latest inflation report shows that grocery prices are back up, making something as basic as eating feel like a financial tightrope walk. So this week, we're rethinking how we define "good" food and making a case that the best meals can be both cheap and delicious by sharing 3 of our favorite cheap meals.

Hopefully you walk away from this episode feeling slightly less guilty about that impulse takeout order (as long as you learn from it), inspired to rethink what's possible with your budget and your kitchen, and empowered to create satisfying meals that don’t break the bank.

We discuss:

The joy (and necessity) of finding delicious, affordable food that doesn't taste like you’re pinching pennies (or just eating sadness)
Practical tips for making flavorful, budget-friendly meals that are both nourishing and satisfying
A closer look into our favorite meals, complete with pricing breakdowns and the secret ingredients to take them from "meh" to "magnificent"
The importance of cross-utilization and how it can help you maximize your grocery budget.

Links:

- Food prices rose 28% in 5 years - Money on the Table S3:E3 “How much is enough?” feat. crispy skin salmon- How to save money by trimming a beef tenderloin