
Here’s How Much Suze Orman Believes You Should Have in Your Emergency Fund

Most finance experts advise that anyone looking to get their finances in order needs to set up an emergency fund sufficient to sustain themselves over the course of 3-6 months. However, Suze Orman, a financial expert by trade and a former CNBC television host, believes the contrary.
Orman categorically challenged the experts stance during the 2017 eMerge Americas conference. She stated that 3-6 months worth of expenses was simply insufficient to make one feel financially secure. Orman is of the opinion that a couple of unexpected scenarios can occur that inhibit one’s progress. She opined that situations like being unemployed for a full year and unforeseen medical emergencies could have a toll on such meager savings.

In essence, Orman believes that a million potential scenarios could occur that could have a draining effect on one’s finances. To remedy this, one would need to have at least 8-12 months of living expenses tucked away someplace
To further support her point, Orman pointed to the Great Recession which occurred about 11 years ago. She mentioned that in 2007, many individuals found themselves jobless, those in the tech scene saw their startups take a nosedive, there were insufficient monies to invest, no one really cared about IPOs because of the dwindling markets and there was pretty much nothing else left to do. She referenced that particular moment in time to illustrate the point that for one to get back on their feet after their chief source of income was cut, months could easily go by without much happening.
Situations

Orman further went on to elaborate that it was not strictly an economic issue. Incidents like illness, car accidents and worldwide calamities could easily rock one’s progression. She added that all this plausible because of the harsh situations witnessed all around the world
For anyone to cope, Orman believes that one needs to be financially secure to cope with crisis situations. Having an emergency fund at the ready is the best way she sees individuals being able to cope with deterrents along the way.
Orman is of the opinion that one needs to have wads of money stashed in their bank account in order to feel financially secure. She said that individuals need not fool themselves into a false sense of security with notions of credit card recharges. Instead, one should have at least eight months to one year of finances.
However, she mentioned that one shouldn’t be depressed if they find themselves unable to save up. Statistics released by a recent Bankrate survey show that only a fraction of Americans, about 39 percent, have sufficient funds in the bank to cover a $1,000 emergency.
Ideas

Orman advises that individuals looking to get their emergency fund started should consider tweaking their budgets and try to find areas they can dedicate more funds to saving and investing
Ideally, one should start putting money away as soon as they can in order to take advantage of compound interest and any other interest that may accrue overtime. When this is done, whatever little money that is currently invested can end up as a lot of money invested in future dates.
Experts in the finance industry recommend individuals who are short on cash to try their hand out in the gig economy. Spending more time in a week driving an Uber, babysitting gigs on Sittercity or establishing a virtual store on Shopify to sell and resell items are some of the effective tactics one can put to good use to earn extra dough. Having a part-time activity can help oneself sustain themselves. This is because it is easier to make more money than spending less.
Those looking to make some cuts in their expenses need to properly review their budgets. Most people tend to overspend on frivolous things. Food is also another common culprit, whether it’s numerous trips to the store to buy groceries, restaurant excursions or take out orders. Websites like Einsurance are fantastic because they offer amazing deals on health, home, life and car insurance rates intended to cater for those who are not in the upper echelon of society.
More inAdvice
-
`
5 Strategies to Save on Car Insurance as Tariffs Drive Prices Up
As trade tensions escalate, car insurance premiums are heading in the same direction. The new 25% tariffs on vehicles and auto...
April 27, 2025 -
`
Ford Extends Employee Pricing to All Shoppers Amid Tariff Concerns
As economic tensions mount due to sweeping tariff increases, Ford Motor Company has decided to bring some relief to consumers. For...
April 19, 2025 -
`
Latvia, Austria, and Greece Lead the EU in Dangerous Driving Habits
Thinking about a road trip across Europe often brings images of scenic routes and well-maintained highways. While generally true, a closer...
April 12, 2025 -
`
Trump’s Tariffs Are Increasing Car Part Prices – Is Auto Insurance Next?
The tariffs imposed by the Trump administration on goods imported from Canada and Mexico are causing ripple effects across multiple industries....
April 5, 2025 -
`
A Mom’s Unexpected Life Lesson from Her 3-Year-Old’s Slide Moment
Children often surprise adults with their wisdom. A 3-year-old recently proved this when he shared a simple yet profound message before...
April 5, 2025 -
`
Upcoming Car Tax Changes in April You Should Be Aware Of
Drivers across the UK will soon face higher vehicle tax costs as new regulations take effect in April. These changes will...
March 30, 2025 -
`
The Most Frustrating Car Insurance Stories You Won’t Believe
Car insurance is supposed to be a safety net, but for many, it turns into a nightmare. Drivers across the country...
March 30, 2025 -
`
Joan Collins’ Two Key Tips Sharon Stone Follows After 40
Sharon Stone continues to embrace aging with confidence, refusing to let societal expectations define her. As she approaches her 67th birthday,...
March 22, 2025 -
`
Ford and GM Stocks Drop – Is the Auto Rally Losing Strength?
The U.S. auto industry faces increased uncertainty as stock prices for major car manufacturers, including Ford and General Motors, continue declining....
March 22, 2025
You must be logged in to post a comment Login