Reacting to Random Things People Used Their “Emergency” Fund For

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Smart Money Happy Hour with Rachel Cruze and George Kamel 40 min 4 speakers 7 chapters transcribed
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What are the strangest uses of an emergency fund?

George Kamel 0:05
Today, we're talking about emergency funds, and more importantly, and more entertaining, the weird things people have spent their emergency fund on.
Rachel Cruze 0:12
I used the emergency fund because I had to bail my brother out of jail.
George Kamel 0:16
Ooh. Raccoon removal. Oh! It cost $99 per raccoon.
Rachel Cruze 0:27
Hey, guys, I'm Rachel Cruz.
George Kamel 0:28
I'm George Camel.
Rachel Cruze 0:30
And this is... Smart Money Happy Hour. Well, this is the show where two friends who happen to be money experts talk about what you're talking about. Everything from pop culture, current events, and money.
George Kamel 0:44
We're sipping on a Cubanada. Ooh. And we're going to give you the rating and reveal the cost per glass at the end of the episode, so stick around for that.
Rachel Cruze 0:52
That sounds so fun. Okay, so this episode kind of started because one of my friends got in a car wreck. Not a bad one. Everyone's okay. But it was on this highway in Nashville in 96, if you're a Nashville person in Franklin. And at a stoplight and she gets hit. Well, the guy keeps going. So she's like, no, no, no, no. You just hit me. You just hit me. And so she ends up at a stoplight and he's like a car ahead of her. So she gets out of her car at the stoplight, like taps on the window. She's like, It's not loud. I thought that was going to have a sound effect.
George Kamel 1:28
Just a gentle tap.
Rachel Cruze 1:29
Just a, you know, she texts. And it's like this kid. Oh, boy. And he, like, looks at her. And she's like, roll down your window. Roll down your window. And he rolls down. And she's like, what are you doing? You hit me. And he's like, I don't know what to do. I don't know what to do. And she was like, you need to pull over. And we have to do insurance and call the police. Like, we have to do a police report. Like, you can't just drive off. But this poor kid, like, had no clue what he was doing. And so anyways, it was this whole thing about like when you're in an emergency, you don't always know what to do, right? And as an adult, it's like that's a very adult-like thing. And if that's your first wreck and this poor kid like panicked, I guess, she was like, I felt like a mom. Like I felt like the old woman in this scenario.
George Kamel 2:09
She's having to walk him through this and hold his hand.

How can an emergency fund bring peace of mind?

Rachel Cruze 2:11
Yes, I know. So anyways, we were just talking about emergencies and then like the things that she had to pay for, right? You gotta claim insurance and all of it. She didn't like to pay for much, but he had to. He didn't have a lot of money. So we're just talking about emergency funds and all of it. And I was like, man, it is so great when you have an emergency fund. Like there is a level of... Just calmness and peace. I just have cash in the bank because 40% of Americans can't cover a $400 emergency in cash. So there is something to be said about having money in the bank. And again, it's peaceful. But sometimes when we have money sitting in the bank, George, we end up spending it. And sometimes some weird emergencies come up.
George Kamel 2:47
And some of them may not be emergencies by my definition. So I'm excited to get into that.
Rachel Cruze 2:53
A little strict about that one.
George Kamel 2:54
Well, here's some stats because, you know, I love a good stat to set it up.
Rachel Cruze 2:57
Did you see my stat earlier? Did you see I just threw in that 40%?
George Kamel 2:59
I noticed that. I was like, I hope she didn't steal one of my stats. I've been waiting to do these for a long time.
Rachel Cruze 3:03
I've been so excited about this.
George Kamel 3:04
No, you didn't. You didn't encroach on my stats.
Rachel Cruze 3:06
I'm so glad.
George Kamel 3:07
Here's one. More than 25% of Americans have less than $1,000 saved.
Rachel Cruze 3:11
Okay.
George Kamel 3:12
So there you go. The average car repair is between $500 and $600. Average urgent care visit is between $100 and $300. I don't think I've ever gotten out of urgent care for $100. That feels cheap. Urgent care feels like they always charge you way more than you want.
Rachel Cruze 3:27
Yeah, don't you do insurance, though, for that?
George Kamel 3:29
Yeah, but I feel like urgent care is always more expensive. Like insurance doesn't cover enough of it. Yeah, it's so urgent, right.
Rachel Cruze 3:34
So urgent. Yeah, so some of those, again, these are pretty common emergencies that pop up or things in life. So that's why we recommend starting out with a $1,000 emergency fund because those can usually get... kind of these ankle-biter things, right? As you're getting out of debt, having that $1,000 is so important.

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