26 October 2022 |
S3 Ep8: Suze Orman and Devin Miller – Creating Emergency Safety Nets Through SecureSave
By Nicole Casperson
What happens when one of the most famous financial experts in the US teams up with a highly successful founder? They change the world.
Suze Orman, host of the Women & Money podcast and bestselling author, joins one of her co-founders Devin Miller, an entrepreneur and former COO of Guidant Financial, to talk SecureSave. This is the work benefit that provides emergency savings solutions to help employees prepare for life’s unexpected moments.
Nicole, Suze and Devin talk about what it feels like living paycheck to paycheck, why secure employees are more productive, and Suze’s mission to financially educate millions.
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You can keep up-to-date with everything Humans of Fintech at https://workweek.com/brand/wtfintech/
And if you’ve enjoyed Humans of Fintech why not try: Chicks of FinTwit, Tech Unlocked, Breaking Banks or Fintech Insider
02:24 When Health And Wealth Isn’t a Given
12:47 The Suze Orman Factor
15:35 What Made 401K Plans Work? Automation
20:06 Going All In
25:25 Digging Deeper Into Finance
33:49 The Other Side to Celebrity Endorsement
38:38 Suze’s Learnings
44:50 Devin’s One Piece of Advice
47:14 Becoming The Change
Why You Must Have an Emergency Savings Fund
Every adult knows that life can throw unexpected challenges our way at any moment. These challenges range from minor inconveniences (like car trouble) to major catastrophes (like the loss of a job).
Unfortunately, most of us are ill-prepared for such curveballs when they strike. That’s because the majority of Americans have little to no emergency savings. A recent survey found that the average American would be unable to cover an unplanned bill costing $500 without selling personal assets or borrowing money.
Why Having an Emergency Fund Is So Important
There are many reasons why having an emergency fund is important. First, it can ease the financial burden of unexpected events. Second, it can improve your credit score. And third, it can help you stay on track with your long-term financial goals. Here are some examples of how an emergency fund can help you in a financial pinch:
– You lose your job – If you lose your job, you may be eligible for unemployment benefits. However, the duration and amount of these benefits vary from state to state. Furthermore, they are not meant to be a long-term source of income: maximum benefits last a few months at most.
– You have a medical emergency – Medical emergencies are common. You never know when you or a loved one might suffer from a serious illness or injury. Having a health insurance policy can help you get the care you need. However, health insurance alone does not cover all costs associated with medical care.
– You incur major home-maintenance costs – Homeowners often encounter unexpected expenses when maintaining their property. These may include roof repair, plumbing issues, and electrical malfunctions.
– You have a financial emergency – Financial emergencies occur when you need quick cash to meet a payment or cover an expense when you’re short on funds. – You have a sudden car repair
– Cars are expensive, and they break down all the time. If you’re lucky, you’ll need a minor repair that doesn’t cost much. However, you might also encounter an expensive engine problem that requires an expensive repair.
The Importance of an Emergency Savings Fund
Emergencies are unpredictable, and no one knows when they might happen. You probably can’t predict when a sudden need for cash will arise. But you can plan ahead for such emergencies by setting aside savings.
An emergency savings fund is an essential part of every person’s financial security plan. Without an emergency fund, you’re likely to turn to credit during times of financial distress. This can do significant damage to your finances. Credit cards are extremely expensive forms of financing. Credit card interest rates average around 16%, and late fees can damage your credit score.
Furthermore, credit cards are not the answer to financial emergencies. Unlike an emergency fund, credit cards do not provide you with immediate cash. You can’t pay your rent or a medical bill with a credit card. With an emergency fund, you’re prepared to meet life’s financial challenges without turning to credit.
Why are so Many Americans Without an Emergency Fund?
Why do so many Americans lack an emergency fund? The simplest explanation is that they don’t prioritize savings. However, the truth is a bit more complex. One reason for the rise in the number of Americans without emergency savings is the rise in the cost of living.
The cost of living has increased significantly in recent years, especially in major cities like New York and San Francisco. This has made it more difficult for millions of Americans to save money. Another reason for the rise in the number of Americans without emergency savings is the 2008 financial crisis. This event inspired millions of people to become more cautious with their finances.
Unfortunately, many of these people became so wary of potential financial crises that they completely withdrew from the financial system. What they didn’t realize is that the best way to avoid a financial crisis is to save money.
How to Build an Emergency Fund
Building an emergency fund is easier said than done. If you’ve never had an emergency fund, getting one can be a challenge. So how do you go about building an emergency fund?
There are two ways to do it: You can either save a certain amount of money each month, or you can save a certain amount of money each paycheck. If you do it the latter way, you’ll probably find it easier to reach your goal. If you do it the former way, you’ll certainly reach your goal eventually.
However, it might take you a long time to get there. The best way to build an emergency fund is to set a realistic goal. You should aim to save 1 month’s worth of expenses. To do that, you’ll likely need to save 10-15% of your gross monthly income. You can start small and increase your savings as you progress.