Bucket #3 - Your Emergency Fund Bucket

ABOUT THIS EPISODE

On today's episode, Financial expert and Amazon best-selling author John Browning talks about Your Emergency Fund Bucket. This is an essential part of your prntfolio and will help you navigate life more easily. Learn more when you Connect with John by texting "LIFE" to 21000 or GuardianRockWealth.com.

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert and number one Amazon bestselling author John Browning Jones, the founder of Guardian Rock Wealth and serves clients across the United States. John's the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copy mailed right to your door. I'm Michael The lawn, your host for the next few minutes as we chat with financial expert and business owner John Browning. John Browning, how he's your week going, sir? Are Weeks going just fine so far. It's early in the week, though, so we'll see how it goes further. But yeah, I'm excited about the week. We got a lot of stuff going on here. I'm glad. That's how it should be, helping a lot...

...of people, I'm sure, build a life, not just a portfolio, because that's what you do. We've been we're in the middle of us of a miniseries, really a guardian rock original and it's about the for buckets of money we've talked in the last couple of US episodes. We start started with the growth bucket, then we went last time to the your income bucket and today we're going to talk about bucket number three, which is your emergency fund bucket. So let's talk, John, about what is is an emergency fund and how does it get fund fun I for I know you're going to be shocked for emergencies, right. Yeah, those unexpected things that come up that tend to derail a lot of financial plans and you don't want that to send you on a major dtour in your plan for building your best life. Okay, so part of planning for that is to just like you would in your...

...in your car. I don't know, maybe maybe some of you don't do that. Maybe some of you don't carry a few tools, few basic tools, in your car. Maybe you don't check your spare tire all the time, but I do that. Maybe you have a number that you call in the case of an emergency. But guess what, you're probably gonna have to pay for that. Right. And I know we talked about a few episodes ago. I came out as was a two weeks ago. Yeah, email on the store and I noticed that tired is not look right. And bottom line, I was hoping for a really simple, small repair, maybe twenty bucks. Ended up being closer to three hundred bucks because I had to replace two tires. As it work. And those are those are those emergencies. Or maybe you get it, you know, maybe there's an accident, you have to pay a deductible or yeah, or maybe have a hospital bility. You didn't expect something like that. Those are those emergencies and you don't want...

...to be taking out of your growth bucket, right, because we talked about that. That might be that might be on a down turn, right, because that's volatile. I don't want to have to sell when things are on the down turn. And unfortunately that's what a lot of people do because they get not even just because they have an emergency, because they get emotional about that and iolutely. But you don't want to have to sell. I call that forced selling, and that's what can happen if you have an emergency and you don't have that emergency bucket and where it's not full enough. Right. Yeah, I mean that's that's detrimental because it makes you go backwards really, in a sense right, it does, it doesn't. Makes you go backwards, and that's what I call it. Can Be a free that fairly major detour on the road map to your best life. There you go, and that's going to be filled with businesses and securities that are fairly stable, because...

...you don't want to one day have that emergency and that be a really bad time in the market or something like that. And determining how big that bucket is and how much is there is very personal to the individual. But you spend a little time thinking about what things cost and and what could go wrong, and it's a little depressing. That part of the planning says, by the way, but it's necessary, but it isn't. And but let me jump into because, and you mission is on a couple episodes ago. When you have that Emergency Fund set in place, whether it's a thousand dollar Tenzero, that depends on the person. But if you had John in your emergency fund, five thousand dollars, let's say, and you walk out the store and saw your Tutars, tires on your car and you realize, okay, here's a five hundred expanse it doesn't hit as hard when you've got three or Fourzero in any emergency fund because you know the money is there. It makes...

...those speed bumps more endurable. Right. It's kind of like the emercy fund is putting shocked absorbers into your portfolio. In a sense it does. That make sense actually that it's really good analogy to use sometimes when I'm speaking with individuals about their wrist tolerance and and where they want to go in creating their best life and how they want to get there. As I said, you want to get there in a jeep wrangler and go straight up the side of the mountain, or would you rather get there in a Lincoln got middle and just kind of float along the interstate and go around the curves, maybe take a little bit longer? That's okay. Would you which one are you of this adds some nice shock absorbers. That's a great way to put yeah, okay, and we all need it. A lot of people don't plan for it. I think that's why I love that you plan for it. Is it is part of the portfolio that you help people create so they'll have a great life, because the not going to have to worry about now. You're...

...not putting tons and tons of money in your Erncy funk because it's not. It's not your growth bucket, it's not your income bucket, it's this reserve bucket. But it there is. There are some fluctuation there, but it's not the wild fluctuations like the roller coaster we talked that. This is more like Kitty land worlds exactly. And and the thing is about it, as this grows, is this emergency fund grows because you want to have it invested in something that's gonna hopefully, you know, keep pace with, or or maybe even beat in Flash. All right, and so you might end up skimming a little bit of that off the top and putting that into either your income or your growth bucket. Okay, now, that can happen and that's a good thing. But you you don't want to let your emergency fun bucket grow to be bigger than you need it to be. Okay, all right, so that makes sense. I say, I hadn't thought about that, is that if you're murder, if you if you determine your emergency bucket needs to have five thousand dollars in random number and it grows for some reason to...

...seven thousand, then you take off that top two thousand and you put it back somewhere else. Right, that's interesting. Okay, I hadn't thought about that. That's good. I never thought about the emergency fund growing, but it you can but about sure. Yeah, okay, interesting. Or, if you know, we ever got into a situation greenflation would actually go down, and that has happened actually in fairly recent history. We've had deflation. So that does happen sometimes. I'm not talking about your tire at the store, John deflating. I'm not that. We're talking about finances. Oh, yes, okay, so, yeah, it does. It does happen. I and I'm optimistic. I think it's going to happen again. You know, I talked to in the last episode. I went to buy a two by four. It you should be two bucks. Now it's eight. I'm trusting it's going to come down a little bit in the in the coming years. So maybe it'll be five. Maybe you're come back to five. Oh, anyway, we get used to certain levels of things. But all right. So we talked emerges from we've talked growth fun bucket, we've talked income bucket. Today we talked emergency fund bucket and really some insightful things that it...

...can. It can grow a little bit, you can, you can take some money out, but you need to have a number and that's what you help people do. So next episode we'll talk about the bucket number for and that's cash. So that's going to be really fun to talk about between now and then. Let me encourage people to reach out to you. John Guardian Rock wealthcom asked John About his Amazon Number One Amazon best selling book, build a life, not a portfolio. If you have your phone handy, pick it up and just text life, the word life to twenty Onezero, and you'll get contact information from John, a cute little video, information about his book and a way to reach out to him and just have a conversation. That's how he always starts everything. But John Browning's a financial planning guru, he's an expert, he's a all around good guy who wants to help you build a life, not just a portfolio, and do it in a way that it makes sense by having for our buckets of money. So, John,...

...thanks for another great episode. I'm looking forward to understanding more about the next bucket on the next episode. All right, we'll see you then. Money really is a big part of our lives and John Browning can help you and your family learn how to keep money in the proper perspective. It's important, but it's only a tool that can help you build the life that you want. If you like, John Emil, you a free copy of his book build a life, not a portfolio. Go to John's website, Guardian Rock wealthcom, and click the contact to US link and send your request. John Will Mell a copy of his book right to your door absolutely free. Thanks for listening to building your life podcast with John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automagically when it's released. Have a terrific day. Nothing in this podcast should be construed...

...as personal investment advice and past performance is no guarantee of future results. Investing is not appropriate for everyone. There is a risk of loss associated with investing in the markets. No representation or implication is being made that using any methodology or system will generate profits or insure freedom from losses. Please remember that investing carries risk. Guardian Rock Wealth LLC and it's affiliates are fiduciary investment advisors. Please consult with US or another experienced qualified investment advisor before making any investment decisions and or trying to implement any of the strategies and tactics we may discuss in any of our publications or podcasts.

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