How do people with a job literally have ZERO money in their bank?

[OfTheCross]

I know there are poor people, but I'm specifically referring to cats who are able bodied and have decent jobs. If you got a decent gig, how in the hell do you allow yourself to be in a position where you can tell someone "I'm broke"?

Now for me, if I say "I'm broke", that means that I don't have any discretionary income that I want to spend. That doesn't mean that I have ZERO dollars. I ALWAYS have money saved for emergencies or whatever else. but I have heard plenty of otha nikkas/women claim that they have no money til they get paid for instance. how do you allow yourself to live so hand to mouth? how can you be comfortable NOT having jack shyt in case some shyt goes down?? totally irresponsible.

for instance, if I had 50K saved up, and I spent all my "allowance" that I allow myself every two weeks, then to me, I'm broke. what about ya'll?

I agree with what you're saying. But most people don't have 50k in savings.

And, honestly, in modern times, I don't know how critical that is.

Having a good steady income and good credit = Savings.

If you've can easily get a LOC for 50K why worry about having cash on hand ?

 

[plushcarpet]

financial independence is the only way you will ever be free

if you're not financially independent, you're not free, period
you might have shiny toys but you're still someone's bytch at the end of the day

 

[TLR Is Mental Poison]

I agree with what you're saying. But most people don't have 50k in savings.

And, honestly, in modern times, I don't know how critical that is.

Having a good steady income and good credit = Savings.

If you've can easily get a LOC for 50K why worry about having cash on hand ?

Its very critical

Short term, you can always lose your job. Then what? With health insurance and other essentials 50K can go pretty quickly. I heard something like every $10K you want in salary = how many months it will take to find another job. So when I hear about cats who only have $10K in the bank making 6 figures I have to

Long term u cant work forever and once that comes u cant stretch out decades on 6 months of emergency funds or SS. U cant take it all with u but u are gonna need a lot before u go.

Relying on credit for emergencies is a fool's game as well.

 

[BezO]

I agree with what you're saying. But most people don't have 50k in savings.

And, honestly, in modern times, I don't know how critical that is.

Having a good steady income and good credit = Savings.

If you've can easily get a LOC for 50K why worry about having cash on hand ?

Personally, I wouldn't keep $50K in savings. Anything over emergency money and savings for big ticket items is overkill at my crib. We invest excess savings.

But liquid cash IS critical in my opinion. Steady income ang good credit can become unemployment & bad credit in no time. How will you pay back that $50K with no income?

 

[OfTheCross]

But liquid cash IS critical in my opinion. Steady income ang good credit can become unemployment & bad credit in no time. How will you pay back that $50K with no income?

How will you pay back anything when you have no income ?

For an emergency, of unemployment or illness, what you need to do is survive until you can get back on your feet.

An important point that we're missing is how critical it is for you to stay out of debt beforehand.

So when you are working and everything is fine, make sure and live within your means.

 

[HookersandIceCream]

I agree with what you're saying. But most people don't have 50k in savings.

And, honestly, in modern times, I don't know how critical that is.

Having a good steady income and good credit = Savings.

If you've can easily get a LOC for 50K why worry about having cash on hand ?

Ain't no one gonna give you a loan when you ain't got a job

Medical is not going to cover you past the month you get fired

And most of the time emergency funds are for emergencys. Which means ASAP
Lol at putting shyt on credit cards

 

[mson]

Worst is you loan them some money and they say they are broke. But steady buying new shyt.

 

[OfTheCross]

Ain't no one gonna give you a loan when you ain't got a job

Medical is not going to cover you past the month you get fired

And most of the time emergency funds are for emergencys. Which means ASAP
Lol at putting shyt on credit cards

No one wants to max out credit cards, of course.

But you've got to use those tools to your advantage.


1. while you're still employed, get the largest Credit limit possible on either a LOC or a Credit card.

2. Don't use it unless you have to. Once you have it, they're not typically going to take it away from you.


There. Now you have 50 - 100K at 5 - 10% interest that you can pay back over time if needed.

Additionally, there are credit card offers that can totally save you. For example, I have a card with BoA with a 20k limit that I never use except for emergencies. You can take CASH out at 0% for 18 months if you need to.

What that means to me is, that when the shyt hits the fan, I'd quicker use all of those options before actually touching my money.

 

[BezO]

How will you pay back anything when you have no income ?

For an emergency, of unemployment or illness, what you need to do is survive until you can get back on your feet.

An important point that we're missing is how critical it is for you to stay out of debt beforehand.

So when you are working and everything is fine, make sure and live within your means.

You will pay expenses with savings/investments when you have no income. In part, that's what they're for.

Stayin' out of debt is critical all the time. What I'm sayin' is that havin' adequate savings is a major part of doin' so. Bein' prepared for emergencies is key. Relyin' on debt durin' those times only compounds the hardhip. Once you do secure income again, in addition to recurrin' expenses you would now have loan payments.

 

[the cac mamba]

Its dumb as hell

Im being conservative with the 10k

One time they delayed his monthly bonus and he was saying they needed to wire him the money that day so he could pay his bills

what a dikkhead

 

[TLR Is Mental Poison]

What that means to me is, that when the shyt hits the fan, I'd quicker use all of those options before actually touching my money.

Having access to credit doesn't change the fact that you need savings to survive

shyt even with your 0% cash card..................................... there's still a minimum payment, no? What are you going to pay the credit card back with cash advances from the card itself?

When push comes to shove cash is always king. If you have access to credit use it but access to credit doesn't diminish the value of cash and saving in general. And if you are living within your means you should be accumulating cash regardless. There's no downside to saving

 

[OfTheCross]

You will pay expenses with savings/investments when you have no income. In part, that's what they're for.

Stayin' out of debt is critical all the time. What I'm sayin' is that havin' adequate savings is a major part of doin' so. Bein' prepared for emergencies is key. Relyin' on debt durin' those times only compounds the hardhip. Once you do secure income again, in addition to recurrin' expenses you would now have loan payments.

You can pay the expenses with borrowed money as well. What I like about doing it that way is that you get to keep your savings in tact while you're at it.

That's why I said it's a key to not be in debt beforehand. Once you're back on your feet a loan payment shouldn't kill you if you weren't already overextended before hand.

And let's not forget that bankruptcy laws can be advantageous as well in these situations. Everyone's personal situation is different, but a large amount of cash on hand isn't the only way to survive 6 - 12 months.

 

[OfTheCross]

Having access to credit doesn't change the fact that you need savings to survive

shyt even with your 0% cash card..................................... there's still a minimum payment, no? What are you going to pay the credit card back with cash advances from the card itself?

When push comes to shove cash is always king. If you have access to credit use it but access to credit doesn't diminish the value of cash and saving in general. And if you are living within your means you should be accumulating cash regardless. There's no downside to saving

Absolutely no downsided to saving and I encourage everyone to do so. But I rather use the banks cash first, then tap into mine.


Say I'm unemployed and have $50k credit limit and $50k in savings

If I max out my cards my minimum payment would be $300 which I can pay from my savings.

Let's say it takes me 8 months to get a new job.


$300 x 8 = $2400

So I've still got $47600 left in my savings after being unemployed for 8 months.

Once you're working again you can pay the card off with your earnings. Your credit won't be ruined, so if you can't pay it off in the 18 months, do a balance transfer to another card to get 18 more months of intrest free payments.

I 100% agree that cash is king. That's why I don't want to touch my cash unless I really have to.

 

[BezO]

You can pay the expenses with borrowed money as well. What I like about doing it that way is that you get to keep your savings in tact while you're at it.

That's why I said it's a key to not be in debt beforehand. Once you're back on your feet a loan payment shouldn't kill you if you weren't already overextended before hand.

And let's not forget that bankruptcy laws can be advantageous as well in these situations. Everyone's personal situation is different, but a large amount of cash on hand isn't the only way to survive 6 - 12 months.

Most interest expense is much higher than savings interest, so I wouldn't play that game. This is the 1st I'm hearin' of a 0% cash advance, but that wouldn't be the worst idea.

But if you weren't savin'/investin', where is the money goin'? Expenses + play money + ???
How doesn't interest expense on top of existin' expenses hurt you?

Definitely not the only way, but I'd want to come out clean on the other end. Payin' back a year's worth of livin' expense loans sounds expensive, even with no interest. That money could be goin' towards savin' & investin' again. I'd prefer to be buildin' my empire rather than someone else's. The only debt I take on nowadays is to make money with it.

 

[TLR Is Mental Poison]

Absolutely no downsided to saving and I encourage everyone to do so. But I rather use the banks cash first, then tap into mine.


Say I'm unemployed and have $50k credit limit and $50k in savings

If I max out my cards my minimum payment would be $300 which I can pay from my savings.

Let's say it takes me 8 months to get a new job.


$300 x 8 = $2400

So I've still got $47600 left in my savings after being unemployed for 8 months.

Once you're working again you can pay the card off with your earnings. Your credit won't be ruined, so if you can't pay it off in the 18 months, do a balance transfer to another card to get 18 more months of intrest free payments.

I 100% agree that cash is king. That's why I don't want to touch my cash unless I really have to.

This is way different than what you were saying before and what the theme of the thread was but w/e. If this is what you meant then yea I agree; doesnt change the fact that people making good money should be stacking when the getting is good. Also even with good credit most people are still getting culo blasted on interest rates. Most people's APRs are in the high teens.... ~18% on 50K is 9K a year just in interest... or 750 a month. Most people can't pay rent or mortgage on CCs. So 50K is still getting run through like red lights in a high carjacking incidence area