Are You Saving Enough for Emergencies?

  • Post category:Budgeting

There is one piece of advice that almost every single financial planner, guru and expert agree on, and that is to set aside money for an emergency. And while that basic advice is useful, it leaves a lot of room for interpretation. After all, how much emergency savings is enough?

Determining an Emergency Savings Threshold
Emergencies can come from many different situations, but one of the easiest to plan for is unemployment. Generally, it’s advised that you figure out your monthly bills based on an emergency situation (during which you’d cut spending on luxuries such as cable) and multiply that total by six so that you have six months’ worth of expenses saved.

Being Flexible
While we use a temporary job loss and the resulting six months of income loss as a basis for your emergency savings goal, that’s not the only crisis that could befall you. Your emergency could be a leaky roof, a burst pipe, a clogged water main, a car accident, and so on. That’s why emergency preparation isn’t just about having accessible cash; it’s also about having the right insurance policies, including:

  • short-term disability
  • long-term disability
  • home or renters’ insurance
  • health insurance
  • auto insurance

Many of these policies will have waiting periods and/or deductibles that must be paid out of your own pocket. For example, a long-term disability policy may have a three-month waiting period (also called an elimination period) during which you have to support yourself before receiving benefits. Luckily, your six months of emergency savings can be used to cover that. A home insurance policy or auto policy may include a $1,500 deductible, which you may want to add to your emergency savings goal (remember that auto deductibles are often per incident rather than per year).

What to Do with Emergency Savings
As you can imagine, an emergency savings account can eventually hold quite a bit of cash. It needs to stay relatively liquid so that you can tap into it when needed but you may want to try and earn some interest on it. This can be done by keeping the funds in an interest-bearing account.

At Kramer Wealth Managers, we can help you determine the right amount of emergency savings to set aside and we can help you decide where to put the funds. Contact us today to get started on your personal WealthPath.

Adrianna Rocha

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX
info@kramerwealth.com

Since joining Kramer Wealth Managers in 2021, Adrianna Rocha has been a client service dynamo, ensuring every client interaction is seamless and delightful. She’s the go-to guru for all things client experience, handling everything from videophone chats to scheduling meetings and processing forms with a smile. Her goal? To make sure every client feels valued and well-cared-for.

Adrianna graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017 and brings nearly a decade of customer service experience to our team. She thrives on personal connections, celebrating both her achievements and those of our clients. When she’s not busy at work, you might find her indulging in her passions—dogs, houseplants, essential oils, and the tantalizing flavors of Mexican cuisine. Proud fur-mama to her adorable Aussie mix, Ziva. Adrianna brings a touch of warmth and enthusiasm to everything she does.

Q: What’s your favorite part of working with clients?

A:  I enjoy client service because it allows me to help people and make a positive impact. Using my listening skills to understand client needs and solve problems is satisfying. I love turning negative experiences positive and the daily variety of challenges.

Adrianna is not registered with Osaic Wealth.

Adrianna Rocha

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX
info@kramerwealth.com

Adrianna Rocha joined Kramer Wealth Managers in 2021.

Adrianna is responsible for client experiences and service. As part of the customer service team, she strives to help and provide top-notch service to our clients. As part of her role, she communicates with clients through videophone, schedules client meetings, prepares and processes forms, and gathers information for our advisors.

Adrianna Rocha graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017. Before she joined our team, she worked in the customer service industry for nearly a decade. She excels in human-to-human relations and takes pride in not only her own accomplishments, but her clients’ as well. Adrianna enjoys chatting about her slight obsession with dogs, houseplants, essential oils, and food: especially Mexican food! She is also a proud fur-mama to her beautiful Aussie-mixed pup, Ziva.

Adrianna is not registered with Osaic Wealth.

Jack Morley

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
240-379-6909 FAX
info@kramerwealth.com

Jack Morley has been a vital part of the Kramer Wealth Managers team since 2010, starting with various projects and officially joining full-time in 2013. As our go-to Account Service Specialist, Jack is the friendly face and reliable voice who ensures a smooth client experience. He’s the linchpin in client communications, handling account maintenance and bridging connections between clients and our advisory team.

A 1998 graduate of Gallaudet University with a BA in Psychology, Jack brings a wealth of customer service experience from retail and human services. His handyman skills are a bonus, making him the resident problem-solver and DIY enthusiast. Outside the office, Jack enjoys long walks with his dog Bailey.

Married for 25 years to his wonderful wife, Monica, Jack is also the devoted dad to two dynamic daughters who keep him on his toes. When he’s not walking Bailey—he’s likely tinkering on a new project or spending quality time with his family.

Q: What’s your favorite part of working with clients?

A:  I enjoy assisting clients in maintaining their accounts and ensuring there is a smooth transition in between changes being made within their accounts.

Jack is not registered with Osaic Wealth.