How Much Money You Should Have in Your Emergency Fund!



if you knew the homeownership or you been around the block of time at you we need to talk about how much money you have in your emergency fund and what we can do to protect you my name is Andrew Finney and my passion is helping you make sense of real estate if you need help finding a top agent near you or if you simply want to drop me a line to say hello my contact info is below if you're new here please go ahead and subscribe this channel now and like this video thank you alright my friend let's talk about the importance of having an emergency fund for your home and I know that if you just closed on your home and you're near the home ownership you might be thinking Andrew I spent so much money between my down payment bar at closing costs moving costs getting into my home and now you're talking about an emergency fund yeah yeah I am and here's why shortly after I bought my first home here in Las Vegas Nevada in 2012 in 2013 I hadn't even been in the house a year and my roof went out and I mean I was playing like Jed Clampett up in the Attic trying to keep water from getting into my house it was that bad so what I found myself doing is having to contact different contractors that come out work with their schedule and get my approved hopefully fixed well what happened is they actually have a do what was called a full roof replacement and it sent me back a cool ten thousand dollars at the time in 2013 it was something I hadn't planned on it wasn't something I had forecast and when the time came I had to go quickly over to my credit union to see if I could get some type of a loan to pay for their roofing cost to replace the roof on my home I don't want that to happen to you so let's talk about four ways to consider how much money you should have in your emergency fund the first thing that when you take a look at is the age of your home if we're taking a look at the age of the home a good rule of thumb it's about two hundred to five hundred dollars per year for the age of your house so if your home is 50 years old you should have anywhere between ten thousand and twenty five thousand dollars saved up in your emergency fund now that's a pretty big spread so it really depends on you and your comfort level at night we want to make sure that you have peace of mind whenever you laid your head down to rest in your new home can make sure that you have the money on hand so you might be thinking Andrew you know ten thousand dollars is law and you're talking about maybe as much as twenty-five thousand the ultimate amount really depends on what's comfortable to you remember a moment ago whenever I shared with you what happened to me my roof cost me ten thousand dollars so what happens something else went out that's why I'm saying maybe a little bit more than that is a good idea if you're wondering if this is an amount of money you need to be saving every single year it's not it's the amount of money that you want to save into a fund dedicated to your emergency fund just for your home so once you build it up you can use it and maintain it any way that you see fit the second thing is to consider any do-it-yourself projects that you can tackle when we're talking about that something has really come to mind you could change a light bulb in your house you can probably also change a little dollar thing in your toy you know that thing that you flush with lots of water and gets out all the number one or number two yeah that thing those are kind of do-it-yourself projects that are pretty easy to do and it's quick to learn just like you're learning about this right now on youtube youtube has a lot of other creators that specialize in do-it-yourself type videos or how to fix that or how they fix this watch those videos and learn how to do as many do-it-yourself projects as you can that you're realistically comfortable with keeping in mind there comes a time when you need to consider hiring a handyman or hiring a licensed contractor for a specific job in your home be sure that you're honest with yourself about what kind of projects you're easily able to tackle and that you're comfortable with doing and when the time comes to hire a handyman or a contractor the third thing that consider is how's the weather out there now you might be wondering what does the weather have to do with an emergency fund turns out quite a bit here's why consider your HVAC system your HVAC system is your heating and cooling system right if you're in certain parts of the country where it's like super super cold then it's probably gonna be an issue with the furnace that will go out when you least wanted to grow up in the dead cold a winter so you want to make sure that you're maintaining that and you have the money set aside for that depending on the weather obviously the colder it is the harder furnace has to work and that's when they become most prone to breaking on the flip side of that in the hotter states like Las Vegas Nevada we have air conditioning and our air conditioning has to work extremely extremely hard in the hundred fifteen degree weather they keep our homes nice and tampering so here's another true story in 2016 whenever I bought my second house here in Las Vegas Nevada what happened a month after closing the a/c went out and I mean I had to replace two honkin units a month after I closed it didn't come up in a inspection it was working just fine I was like oh this is great I love the AC it's nice and cool it's hot outside but it's cool inside right well it wasn't so cool about the time that my AC went out so that was another $10,000 which goes back to when we're saying $200 the $500 per year of the age of the homes so if you have ten thousand dollars saved up it can wipe out your fun all at one time or if you save up to the $25,000 now then hey guess what you should be covered obviously these suggestions for the amount of money you should have stayed up for gonna be in direct proportion to the kind of home that you have in the price range of the home that you purchased the more expensive the home obviously you probably want to take it up a bit now the less expensive the home maybe it's okay the ticket down a bit maybe your AC doesn't cost five thousand or ten thousand dollars per unit maybe the a/c on the size of home that you have is gonna cost three thousand dollars a replace you can plug and play these numbers as you see fit is just an extremely wise idea to be prudent and save ten the twenty five thousand dollars for any kind of home maintenance items that could go out and if you have it ready to go in your emergency fund it's gonna be there for you as opposed to leaving you wondering and scratching your head or you can get the money speaking of that let's go into the fourth thing which is breaking down the cost when we're talking about breaking down the cost what I want you to do is to make a list of the various components in your house now I did make a video with the 12 components of a home that go out all the time that's probably gonna be a very good video for you to check out after this one so here's the thing when we walk around our home we can easily identify different things we're going to need to do we have an HVAC system we have a refrigerator we have a stove but garbage disposal we have a water heater we have different aspects of a home roof and even the floor we need a plan for these things so the best thing that we can do is break down how much it costs to replace each one of those items and then you can also use that method to save the appropriate amount of money in your emergency fund now this is something that you don't have to do like right overnight you don't need to have $25,000 I mean if you do have $25,000 for an emergency fund rock on make it happen but if you don't have that money just know this is something you should be building up towards a goal for you to have that money on hand maintain your home so that we can assure that you're okay and your home is okay moving forth planning for any unexpected events rowdy that could happen all right my friends so now that you have some different ideas about how to say about the money and how much money to save up and even a way of knowing how much you should be having in the emergency fund let's take a closer look at the 12 point checklist for the first week in your home and the six mistakes to avoid hiring a handyman looking forward to our next conversation we'll see in a few [Applause]

3 Comments

  • RealLife Money - Weekly Financial Videos

    April 15, 2019

    Wow that’s good advice. Home repair is not cheap. I see how fast $10k could go ?

    Reply
  • Unbreakable Mahal

    April 15, 2019

    Thank you this help we will be looking for our first home this year… What do you recommend on the year of house to start with so we wouldn’t run to a lot of proton the beginning?

    Reply
  • MiMi Butterfly

    April 15, 2019

    Love All Your Videos ✨??

    Reply

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