[Music] This question is from Co. Oh. It says, I am on step four and it's feeling like this may take many months, if not a year, just to save that 3 months Reserve. Is this normal for most people? And am I missing something? Well, is it normal to that it's difficult to save up an emergency fund? Yes, it's hard because like you have to live in this world of discipline where you're willing to sacrifice a little bit of today so you can have more security tomorrow. That's what the emergency fund is all about, security. And so when I think through the practical mathematics of, All right, it looks like it's going to take me a while to build up three months of expenses, that could mean a few different things. And what it most likely means is there's not a ton of margin in your system. What that means is your with where your income is and where your expenses are are likely pretty tight, meaning there's not a whole lot left over to be able to build up.

that emergency fund. And if that's the case, then it is worthwhile for you to put in the time to build up that emergency fund. If you have expenses that are high enough that if your income were to go away, you'd be in a bad spot, a tight spot. So while it's difficult, I'm going to argue that it's incredibly necessary. So what are some things that you could do to maybe help that? Well, there's really only two. How can I get my expenses down so that 3 to 6 months of expenses is actually leaner than the way that I'm living right now? Or how do I get my income up? How do I increase my income so that all that increased income can go to building up that emergency fund so that I can get through step five as quickly as possible? I think those are really the only two options. Yeah, but there there's still some work. Um, let's put some, let's put some some meat on that, that turkey leg. Um, here's the thing. A lot of people

surprised when I ask them what are your what's your monthly burn rate, because that's the first question we really need to to know. What are you expending? What are the must things that, no matter what happens, you're going to have to write a check for it? Or, or, or I know I sound like an old man when I say write a check. You're going to have to pay the bill no matter what happens. I'm always surprised how many people can't tell me what their monthly living expenses are. So, and that that's not just a conviction or it's to people who just struggling. This is to people who are successful. Well, so make sure you've actually done some time spent some time figuring out what your budget, what your expenses are. Um, in that moment of need. And then don't skip out on how many months you need to cover, because there's a broad range. You can't just say I need six months of emergency reserves. Actually do the exercise. And that's one of the things we tried to

spend some time in millionaire mission on is what does 3 to 6 months actually mean because there there's different versions for different people we all all unique we all have different fingerprints you know we all are looking and our personal finance needs are very personal so don't skip those two steps but I think yes if you get through doing that research on what are your true expenses and then you figure out hey I'm closer to four months or five months I've done that exercise and you're finding out that it's still going to take time that's okay because what we're trying to protect you from is the the the scary things that could happen if you had an emergency and also I think bow is hitting on a point though if it takes you a full year to build up 3 to six months then that means really go figure out what do my expenses look like cuz that means maybe your expenses compared to your income might be tippity top right next to each other and there's

not a lot of margin in between so go back and look at those expenses, or figure out if there's something you can do to juice up, or hit the accelerator on that income side of things.

Is It Normal That It Will Take Me a Year to Save My Emergency Fund?

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