Emergency Fund Calculator: https://www.pnc.com/en/calculators/investments-and-retirement/safety-net-calculator.html
00:00 Savings Balances
00:57 Credit Card Debt
02:46 Delinquencies
05:06 Emergency Fund Stats
05:55 HYSA
08:35 Fixing Low Savings
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Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.
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I think because the fact I used to be homeless and broke. My mother was a child of the Great Depression. I'm over cautious in having too much cash. As a result of having an inheritance of 325k the combination of a taxable brokerage account inherited traditional IRA and cash from sold estate assets in 2020. My net worth is about 415k. About 12% of my net worth is inside my Roth IRA and Roth 401k. Roughly 87K is in a US Government money market fund or high-yielding online savings accounts. The least I don't have to touch my profolio in emergency or wanting to go on vacations.
Prediction that many households financial picture will worsen soon as student loan payments begin.
I'm now earning $104/month in my HYSA. Prior to moving my Savings into a HYSA, the same amount on money was only earning my 11 cents/month at my brick and mortar bank, Erin!
Currently have our emergency fund in I bonds. Cashing them out 1/1/24 and moving them to our HYSA. Been trying to get my dad to move a sizable amount of cash to a HYSA and he's all about trying to find a good CD which pay like 1/2% more. Not worth it IMO. The time he's spent looking for a good one would be outweighed by interest in a standard HYSA.
I had a HYSA, but I’ve been building a CD ladder instead. Unfortunately CDs > 18 months have much lower rates. My current strategy is to keep a pretty big chunk of $$ in a money market fund (SWVXX) and purchase CDs at rates above 5% periodically.
Your right Erin
Sweat the small (financial) stuff it will pay off in the long run
Why do people come to these finance channels and share their personal finance situation?? Some of you have very detailed YouTube accounts and taking that info with the info you should share, makes it so much easier to start dropping subtle scams. Protect your privacy ladies and gentlemen. I can tell Americans have never been taught media literacy.
I understand the soft landing mindset, but by definition a recession is two negative quarters in row. We have had that already. You can’t change the rules in the middle of the game. Just because the fed and the administration claim we haven’t had a recession doesn’t make it true. The fed was slow to react in the first place which has caused the inflation numbers that they are fighting now. Thanks for another common sense video.
Maybe not much different with govt? debt just going up and up
Credit cards are a part of my emergency fund plan because they are instant access to money. I would still pay off an emergency credit card balance within the first month or two from my less liquid accounts.
I wonder how many people keep their emergency fund in a money market fund like vmfxx instead of in savings account? If people have moved their funds to money market mutual funds to get higher yields that might explain some of the drop in savings account balances.
Hi Erin,
I am preparing to have new windows installed in my home for $8600. I have been saving for this with a Capital One 360 sinking fund at 4.3% interest. I will have approximately $5000 saved in there by the day of the installation(about a month from now). However, I intend to sign up for a Wells Fargo credit card which has no interest on purchases for 15months, no annual fee, and a $200 sign up bonus. So while I may put a few thousand down, I am going to spread the remaining balance into 14-15 monthly payments during this grace period. This will enable to me to continue collecting the interest with the High Yield Savings Account.
I currently have no credit card debt, house/3 cars are paid off.
Take care:)
Jeff
Another great one. Thanks!
I looked into high yield accounts here in Canada at the bank.They offer great rates for like 90 days,then it tanks to low junk rates.Banks here seemingly don't have to scramble to take on deposits,they have enough in hand apparently,so they pay very low rates and almost don't care.