1 00:00:03,440 --> 00:00:06,720 Speaker 1: Welcome to Before Breakfast, a production of I Heart Radio. 2 00:00:09,520 --> 00:00:14,400 Speaker 1: Good Morning. This is Laura. Welcome to the Before Breakfast podcast. 3 00:00:15,160 --> 00:00:19,120 Speaker 1: Today's tip is to boost your emergency fund by one month. 4 00:00:20,120 --> 00:00:23,159 Speaker 1: Well this sounds like a financial tip, it's actually a 5 00:00:23,200 --> 00:00:27,840 Speaker 1: move to buy time time without being anxious about money. 6 00:00:28,880 --> 00:00:32,240 Speaker 1: An extra month is doable no matter where you're starting, 7 00:00:33,040 --> 00:00:36,920 Speaker 1: so that makes it a good goal. I'm writing this 8 00:00:37,040 --> 00:00:40,680 Speaker 1: and what are to put it mildly highly uncertain economic 9 00:00:40,800 --> 00:00:44,960 Speaker 1: times so far two thousand twenty has reminded us that 10 00:00:45,000 --> 00:00:48,080 Speaker 1: people can make all the right choices and still have 11 00:00:48,200 --> 00:00:52,320 Speaker 1: businesses shuttered for months. It's easy to feel helpless in 12 00:00:52,360 --> 00:00:55,680 Speaker 1: the face of this injustice. But one thing we can 13 00:00:55,800 --> 00:00:59,480 Speaker 1: do is channel this anger into making sure not to 14 00:00:59,520 --> 00:01:03,160 Speaker 1: feel bliss in the future. The best way to do 15 00:01:03,240 --> 00:01:06,200 Speaker 1: that is to build up enough cash that day to 16 00:01:06,280 --> 00:01:09,920 Speaker 1: day crises are just not a big deal. Now. I 17 00:01:09,959 --> 00:01:13,160 Speaker 1: know that a lot of financial podcasts and blogs focus 18 00:01:13,200 --> 00:01:17,080 Speaker 1: on the idea of achieving financial independence. This is the 19 00:01:17,120 --> 00:01:20,240 Speaker 1: point where the income from your investments can cover your 20 00:01:20,240 --> 00:01:24,440 Speaker 1: living expenses. Translation, you would not have to work for 21 00:01:24,480 --> 00:01:27,800 Speaker 1: a living. This is certainly a great long term goal. 22 00:01:27,920 --> 00:01:31,400 Speaker 1: It's really the idea behind retirement, but long before you 23 00:01:31,440 --> 00:01:35,920 Speaker 1: achieve that having enough cash in relatively liquid assets to 24 00:01:36,000 --> 00:01:39,160 Speaker 1: cover a year or so of living expenses can change 25 00:01:39,160 --> 00:01:43,120 Speaker 1: your entire mindset. You wouldn't have to find anything for 26 00:01:43,240 --> 00:01:46,880 Speaker 1: quite a while. In a year, you could probably figure 27 00:01:46,880 --> 00:01:52,040 Speaker 1: out something, especially if you have multiple sources of income. So, 28 00:01:52,480 --> 00:01:55,040 Speaker 1: knowing you had the time without having to dip into 29 00:01:55,080 --> 00:01:58,400 Speaker 1: retirement savings or sell a house or anything like that, 30 00:01:59,080 --> 00:02:01,920 Speaker 1: you could start approach all of life with a new 31 00:02:02,000 --> 00:02:06,880 Speaker 1: sense of freedom and calm. Everyone is at different places 32 00:02:06,920 --> 00:02:10,600 Speaker 1: on their financial journeys, but today's tip is for anyone. 33 00:02:11,040 --> 00:02:15,400 Speaker 1: Whatever the size of your emergency fund, now, how could 34 00:02:15,400 --> 00:02:20,680 Speaker 1: you increase it to cover one more month in a crisis? 35 00:02:20,960 --> 00:02:24,760 Speaker 1: Even an extra month might be helpful. Over the past 36 00:02:25,000 --> 00:02:28,359 Speaker 1: several months, we've seen that some state unemployment systems are 37 00:02:28,480 --> 00:02:32,200 Speaker 1: unable to handle large volumes of claims. Even if you're 38 00:02:32,280 --> 00:02:36,760 Speaker 1: entitled to payments, you might not get them quickly. Policymakers 39 00:02:36,880 --> 00:02:41,200 Speaker 1: might allocate extra funds, but some people stimulus checks took 40 00:02:41,240 --> 00:02:46,559 Speaker 1: a long time to come. An extra month buys breathing room, 41 00:02:46,600 --> 00:02:49,160 Speaker 1: and even if you already have, say, six months of 42 00:02:49,240 --> 00:02:52,760 Speaker 1: expenses in an emergency fund, which is great and you 43 00:02:52,800 --> 00:02:56,680 Speaker 1: have other assets invested, which is also great. A little 44 00:02:56,800 --> 00:03:01,920 Speaker 1: extra might still feel a little better. Tough economic times 45 00:03:02,240 --> 00:03:06,520 Speaker 1: often lead to market swoons. You need the fortitude not 46 00:03:06,639 --> 00:03:10,440 Speaker 1: to sell in a down market, and having enough liquid 47 00:03:10,480 --> 00:03:13,520 Speaker 1: assets that you wouldn't have to can keep you from 48 00:03:13,600 --> 00:03:18,919 Speaker 1: constantly checking on your stocks. Worry consumes all kinds of time, 49 00:03:19,720 --> 00:03:23,639 Speaker 1: and I like to help people save time. So if 50 00:03:23,639 --> 00:03:26,520 Speaker 1: you haven't done this already, figure out what kind of 51 00:03:26,560 --> 00:03:31,160 Speaker 1: cash your household goes through in a given month, then 52 00:03:31,639 --> 00:03:35,559 Speaker 1: figure out how you might find this number in additional resources. 53 00:03:36,240 --> 00:03:39,640 Speaker 1: Not over one month, of course, but over time. The 54 00:03:39,720 --> 00:03:43,120 Speaker 1: first place to look money you're not spending on gas, 55 00:03:43,360 --> 00:03:46,920 Speaker 1: if you're working from home more and taking fewer trips. 56 00:03:47,200 --> 00:03:51,160 Speaker 1: Refunds from vacations not taken can also pad the pile, 57 00:03:51,880 --> 00:03:55,680 Speaker 1: as can cash from meals not eaten out. I think 58 00:03:55,760 --> 00:03:58,880 Speaker 1: every household could try to have some sort of side hustle. 59 00:03:59,760 --> 00:04:02,280 Speaker 1: At very least you can look into one of the 60 00:04:02,480 --> 00:04:07,000 Speaker 1: discounts cellphone providers to save a little bit here and there. Yes, 61 00:04:07,200 --> 00:04:10,240 Speaker 1: there may be some folks out there whose emergency funds 62 00:04:10,320 --> 00:04:14,320 Speaker 1: are too large, they have too much in cash and 63 00:04:14,400 --> 00:04:18,880 Speaker 1: not enough invested. But I suspect that most people are 64 00:04:19,000 --> 00:04:22,320 Speaker 1: not in that position. Well, it's a good goal to 65 00:04:22,360 --> 00:04:25,120 Speaker 1: have an emergency fund that can cover an entire year. 66 00:04:25,720 --> 00:04:29,000 Speaker 1: I know that can seem daunting, but an extra month 67 00:04:29,880 --> 00:04:34,719 Speaker 1: that's doable. Aim for that, and then over time you 68 00:04:34,760 --> 00:04:39,440 Speaker 1: can look for ways to buy yourself more time. In 69 00:04:39,480 --> 00:04:44,000 Speaker 1: the meantime. This is Laura. Thanks for listening, and here's 70 00:04:44,040 --> 00:04:53,479 Speaker 1: to making the most of our time. Hey, everybody, I'd 71 00:04:53,520 --> 00:04:55,920 Speaker 1: love to hear from you. You can send me your tips, 72 00:04:56,000 --> 00:04:59,680 Speaker 1: your questions, or anything else. Just connect with me on Twitter, 73 00:05:00,080 --> 00:05:04,800 Speaker 1: Facebook and Instagram at Before Breakfast Pod that's b E 74 00:05:05,440 --> 00:05:09,600 Speaker 1: the number four, then Breakfast p o D. You can 75 00:05:09,600 --> 00:05:13,160 Speaker 1: also shoot me an email at Before Breakfast podcast at 76 00:05:13,160 --> 00:05:16,159 Speaker 1: i heeart media dot com that Before Breakfast is spelled 77 00:05:16,200 --> 00:05:18,840 Speaker 1: out with all the letters. Thanks so much, I look 78 00:05:18,839 --> 00:05:27,200 Speaker 1: forward to staying in touch. Before Breakfast is a production 79 00:05:27,240 --> 00:05:30,679 Speaker 1: of I Heart Radio. For more podcasts from I heart Radio, 80 00:05:31,160 --> 00:05:34,679 Speaker 1: visit the I heart Radio app, Apple Podcasts, or wherever 81 00:05:34,760 --> 00:05:36,080 Speaker 1: you listen to your favorite shows.