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

[BezO]

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.

If it's interest free, cool. Anything less than what savings would earn is cool.

0% though? What's your credit score, 2,000? And why would a cc give away money @ 0% under any circumstances? I thought I was doin' good with the interest rate on my cc. I could only pull off 0% indirectly, by transfer, and I'd still get hit with a transfer fee.

 

[OfTheCross]

If it's interest free, cool. Anything less than what savings would earn is cool.

0% though? What's your credit score, 2,000? And why would a cc give away money @ 0% under any circumstances? I thought I was doin' good with the interest rate on my cc. I could only pull off 0% indirectly, by transfer, and I'd still get hit with a transfer fee.

They send me the promo checks every month that allow me to get cash out of the card at 0% for 18 months. This is a card I've got with BofA. There is a transfer fee, though. but it's not much.

I've actually used that money, lent it out and charge 10% interest on it.

But even with certain expenses I rather charge it to the game even if I gotta pay interest on it. I recently had to do some crap for my dog and I charged it to another card I got that has 5% interest. If I pay it off in a year it'll only cost me $100 in interest.

 

[beenz]

Wrong thread

 

[intruder]

So when I hear about cats who only have $10K in the bank making 6 figures I have to

I dont believe this sh!t happens for real. SOme of these fools be running their mouth about sh!t they really dont have. MOst these clown arent making all the money they claim

 

[BezO]

They send me the promo checks every month that allow me to get cash out of the card at 0% for 18 months. This is a card I've got with BofA. There is a transfer fee, though. but it's not much.

I've actually used that money, lent it out and charge 10% interest on it.

But even with certain expenses I rather charge it to the game even if I gotta pay interest on it. I recently had to do some crap for my dog and I charged it to another card I got that has 5% interest. If I pay it off in a year it'll only cost me $100 in interest.

Ahhh, OK. I do get those offers. From BOA too. I always trash'em. Nice play on lendin' that out @ a higher rate though!

If I remember correctly, the transfer fee is usually the lesser of $50 or 3%.

I feel you. But %5/$100 is still more than what you'd make in interest. I treat even the smallest amounts as if they're big just to create the habit.

Funny. I just had to spend money on my dog. Not enough to tap savings though.

 

[TLR Is Mental Poison]

I dont believe this sh!t happens for real. SOme of these fools be running their mouth about sh!t they really dont have. MOst these clown arent making all the money they claim

When I got out of college I was making mid 60s plus overtime

I don't think I ever had more than like 5K in my account that first year, and I had no student loans

If u dont watch money and u are reckless with spending u can def run through it no problem. I wish I would have saved that bwuead

 

[sayyestothis]

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.

^^^apparently these people don't understand leverage.

Every successful person had debt. Good debt is not bad to have ie credit for cheap ie using LEVERAGE.

People that have a bad view on debt are the people that either

1. Don't understand it or
2. Can't get approved or obtain good debt ie people with credit cards with 10+% or car loans with 5+%.

 

[TLR Is Mental Poison]

^^^apparently these people don't understand leverage.

Every successful person had debt. Good debt is not bad to have ie credit for cheap ie using LEVERAGE.

People that have a bad view on debt are the people that either

1. Don't understand it or
2. Can't get approved or obtain good debt ie people with credit cards with 10+% or car loans with 5+%.

Like I said most people don't have credit cards with single digit APRs, even with "good" credit. I suppose you can play the ladder to get in that realm.... it's not difficult.... but it takes time people might not have if disaster strikes.

And leverage or not, good credit or not, liquidity is never a bad thing, nor do you even need tons of cash to build good credit. So the premise of the thread still stands. Yall are just APR flexing under the auspice of good advice.

 

[sayyestothis]

Like I said most people don't have credit cards with single digit APRs, even with "good" credit. I suppose you can play the ladder to get in that realm.... it's not difficult.... but it takes time people might not have if disaster strikes.

And leverage or not, good credit or not, liquidity is never a bad thing, nor do you even need tons of cash to build good credit. So the premise of the thread still stands. Yall are just APR flexing under the auspice of good advice.

Not tryna flex breh. Just wanted to speak the truth because the majority of people think the word debt is a bad word no matter what and it's not. That's all.

 

[OfTheCross]

Like I said most people don't have credit cards with single digit APRs, even with "good" credit. I suppose you can play the ladder to get in that realm.... it's not difficult.... but it takes time people might not have if disaster strikes.

And leverage or not, good credit or not, liquidity is never a bad thing, nor do you even need tons of cash to build good credit. So the premise of the thread still stands. Yall are just APR flexing under the auspice of good advice.

The OP was just asking how one can have a good job and no savings / cash to handle their business til they get paid.

What I was bringing up is that you may not necessarily need cash on hand. You can survive with a credit and income. We kindof veered off into a conversation about "worst case scenarios" but the OP is about able bodied, employed individuals.

If you have life insurance, you don't need to save for your family
If you have car insurance, you don't need to save for an accident.
If you have homeowners/renters insurance, you don't need to save for a robbery or natural disaster.

Liquidity is never a bad thing, but it's not as necessary as we think. If we're speaking about the able bodied and employed individuals in the OP

 

[intruder]

How's everyone's savings looking with Q4 coming to an end soon?

With the purchase of the house in August and soon to purchase a car in the next few days i must say all these expenses have made me slow down a bit. I'm a bit above $8K right now in savings. Not counting the investment account

 

[mson]

How's everyone's savings looking with Q4 coming to an end soon?

With the purchase of the house in August and soon to purchase a car in the next few days i must say all these expenses have made me slow down a bit. I'm a bit above $8K right now in savings. Not counting the investment account

How much was the house?

 

[DrX]

ppl live beyond their means...when i get money my first thought is "how can i flip this" not "ima cop the new J's"

 

[intruder]

ppl live beyond their means...when i get money my first thought is "how can i flip this" not "ima cop the new J's"

Only pair of "J's" ive ever owned were a gift. And they might have been fakes too

My rule on shoes: Never go into triple digits even after taxes

 

[TLR Is Mental Poison]

Last few months have been good.... been saving about 1000-2000 a month. Now that we are in the clear from buying the house in April we can get to investing. Meeting with a planner next month. Hoping that will get our cash and investments over 6 figures by 2017. We are in a good position now though. If we keep the spending low we should be able to save like 3K a month. I'm hoping to start a higher paying job next year too.