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- Money Monday's Vol.1 - Overcoming Financial Emergencies
Money Monday's Vol.1 - Overcoming Financial Emergencies
Financial Story Of The Week
[Divorce, Depression, and Overcoming Debt]
Zakk, a young professional in Austin, faced a financial crossroads. After a difficult divorce and job loss in 2020, he found himself with mounting credit card debt from unexpected expenses. This experience reshaped his approach to personal finance. Zakk decided to build a significant emergency fund, aiming for 4-6 months of living expenses in cash. While some argued this money could be invested for higher returns, Zakk prioritized the peace of mind and flexibility it provided. He explained,
"Having cash for emergencies helps me sleep at night. When my car broke down recently, I could pay for repairs without stress or adding debt."
This strategy reflects a growing trend among millennials who've experienced economic instability. Many are choosing to keep larger cash reserves, even with lower interest rates, to buffer against unexpected events. While this approach may limit potential investment gains, it offers security and options in an uncertain world.
The lesson? Financial strategies should align with personal goals and risk tolerance. For some, the psychological benefits of an emergency fund outweigh potential investment returns. Balancing security with growth is key to a resilient financial plan.
But what about you?
💰Money Insights💰
Emergency Funds: Personal Security vs. Investment Returns
The question still remains…
Should you keep a large cash reserve? Or keep the majority of your cash invested for the potential of higher returns over time? THIS WAS THE HOT DEBATE OF SESSION.
The fact we do know…
We are not here to tell you which way is the best way.
But we want to provide guidance to those who wish to start an emergency fund, or those thinking about how much their fund should be.
George Kamel “Emergency Funds 101: You’re Screwed If You Don’t Have One”
Real Estate as a Path to Financial Freedom🏡
Are you invested in real estate?
If not, do you want to be?
Real estate is a common theme as our group continues to grow.
Multiple members have shared strategies for using real estate investments to build wealth and reduce living expenses.
So far ideas have included…
➡️house hacking (renting out part of a primary residence)
➡️building a rental property portfolio
➡️aiming to pay off mortgages early.
Real estate is renown for generating passive income, increasing overall net worth, and potentially allowing for more career flexibility over the long run.
But is not a sure win, and can be scary to get started in.
Which is why we want to hear more of your wins/losses in the real estate market.
So if you have an epic story, win or lose, and you are the type of person that wishes to help others with your lessons…
Respond directly to this and let’s get your story out there!
The Financial Impact of Major Life Decisions
”It’s one thing to work towards earning yourself financial freedom, it’s entirely another to do so with a growing family.”
One thing that is easy to forget in groups is that everyone has a different situation.
Some are single and ready to mingle.
Others are married with multiple kids.
When it comes to the world of finance, while these two parties may operate with the same principles, their constraints are much different.
The truth is, decisions like marriage, divorce, and having children significantly impact finances.
And if we aren’t prepared for the hard decisions ahead, when we COULD BE…
That makes us fools.
Which is why this group matters because we can share this information with each other and help one another prepare for potential turbulence, while also setting one another up for financial success along the way.
Using our previous Money Monday’s discussion as an example, it left us with questions and though points such as…
→ The person you decide to marry is the second most important financial decision you make, the first is who you end up having kids with.
→ How much does a family cost vs. when single?
→ What does divorce cost? Fiscally and emotionally?
🔊Overheard on Money Monday
"I want to be able to, if she comes home one day and says, 'I hate my job…,' I want to have an F-off fund where it's just like, 'All right, quit, and find something else.'" - CJ
Context: CJ was discussing his goal of building enough financial security to allow his wife the freedom to leave her job if needed, emphasizing the importance of financial planning in supporting life partners.
"Money is emotional, it's not logical. If it was logical, everyone here would be a millionaire." - Dan
Context: Dan was explaining why many people struggle with personal finance, despite knowing what they should do. He emphasized that emotions often drive financial decisions more than logic.
Your Financial Reflection
Talk is cheap. ACTION MAKES MONEY.
How might building a larger emergency fund change your financial decisions and overall stress levels? What would you be willing to trade off to have this increased security?
What actions can you take in the near future to set yourself up for longterm financial success?
Go take one step today on that path!
Resource Roundup
A personal finance tracking tool mentioned by several participants for monitoring spending and setting financial alerts. | |
A financial education program by Dave Ramsey, referenced by participants when discussing debt management and budgeting strategies. | |
A social accountability group where members commit to daily challenges and report their progress, mentioned as a tool for building consistent habits. |