Why bother having an emergency fund at all?

[The_Unchosen_One]

I say it's worth having an emergency fund.. my case for example...

My job was essentially 3 full time jobs in one... working damn near 15-18 hour days most the time

Boss was treating me like complete garbage and I told him that it wasn't going to work after a series of completely unprofessional emails from him and he basically said go away.. promised me a severance and then turned around and said "you know what... I don't have to give you anything" and then did just that. So now that I'm looking for a job it's nice to have that nest egg to where I don't have to scramble for money to pay my bills.

 

[dem bath salts]

People OD with emergency funds like they need survive the zombie apocalypse.

I keep 5k liquid for a decent lawyer if shyt gets sticky.

 

[Serious]

My emergency stash is acorns

 

[Dolla$]

My emergency stash is acorns

Fellow acorn breh

 

[BushidoBrown]

My emergency stash is acorns

Fellow acorn breh

 

[CASHAPP]

People OD with emergency funds like they need survive the zombie apocalypse.

I keep 5k liquid for a decent lawyer if shyt gets sticky.

That’s true people do go overboard

A true emergency fund is learning beneficial life skills like hunting and farming just in case something goes down

I mean think about it for a second breh, what if overnight there was no gas and all the supermarkets were closed. What’s only having an emergency fund gonna do?

 

[MMS]

Make a thread breh

https://www.crunchbase.com

:vwhite:

 

[Jimmy Two-Times™]

How is this thread even an argument. Stupid.

 

[winb83]

How is this thread even an argument. Stupid.

No it's not stupid. You might disagree with it but the logic makes perfect sense.

 

[Jimmy Two-Times™]

No it's not stupid. You might disagree with it but the logic makes perfect sense.

It doesn't lol

 

[winb83]

It doesn't lol

If you don't understand it that's fine. Everything isn't for everyone. Some people need thousands of dollars sitting around eroded by inflation to make them feel secure and some others feel like that money would be better served making them money invested. If an emergency happens they can simply use a credit card and liquidate assets to cover that. Many others live well under their means and would just divert money they're normally saving to cover those expenses.

 

[Jimmy Two-Times™]

If you don't understand it that's fine. Everything isn't for everyone. Some people need thousands of dollars sitting around eroded by inflation to make them feel secure and some others feel like that money would be better served making them money invested. If an emergency happens they can simply use a credit card and liquidate assets to cover that. Many others live well under their means and would just divert money they're normally saving to cover those expenses.

a credit card is not your money you will have to pay that back and with interest... that is an expense you cannot afford otherwise you wouldn't be using a credit card in the first place.

how can you practice financial freedom if you're still borrowing which you don't have to cover debt you already cannot pay back. you are essentially covering debt with more debt whilst saving up to pay off the second debt looooool

when you save money whether in an asset or not it is yours and you can withdraw it at any moment and you will never have to pay that back because these funds already belong to you.

Just because you can pay off a short term debt with long term debt doesn't mean you're solving the inherent root problem which is that you are in debt already.

this is why you save X amount of money to cover expenses you potentially cannot cover if something were to not go as planned for a period of time.

your logic of finance in this regard is flawed

 

[winb83]

a credit card is not your money you will have to pay that back and with interest... that is an expense you cannot afford otherwise you wouldn't be using a credit card in the first place.

how can you practice financial freedom if you're still borrowing which you don't have to cover debt you already cannot pay back. you are essentially covering debt with more debt whilst saving up to pay off the second debt looooool

when you save money whether in an asset or not it is yours and you can withdraw it at any moment and you will never have to pay that back because these funds already belong to you.

Just because you can pay off a short term debt with long term debt doesn't mean you're solving the inherent root problem which is that you are in debt already.

this is why you save X amount of money to cover expenses you potentially cannot cover if something were to not go as planned for a period of time.

your logic of finance in this regard is flawed

I buy everything on a credit card. I only pay cash to my barber because he doesn't accept credit. I get anywhere from 2-6% cash back on everything I purchase and I don't pay any interest or finance charges because I pay the bill when it's due.

I also don't buy anything I can't provide the money for inside of 30 days to pay in full. I'm pretty much completely against debt but I don't view charging something on a credit card and once it post paying it off as debt.

I'm talking about taking your savings and investing it and keeping a buffer of a paycheck or two in a checking account so you can pay bills on time. When you build your investment accounts past 50K to 100K are you really gonna need 6 months expenses sitting in a savings account? I'm not talking about retirement accounts like a 401K or Roth either I'm talking normal investment accounts.

 

[Jimmy Two-Times™]

I buy everything on a credit card. I only pay cash to my barber because he doesn't accept credit. I get anywhere from 2-6% cash back on everything I purchase and I don't pay any interest or finance charges because I pay the bill when it's due.

I also don't buy anything I can't provide the money for inside of 30 days to pay in full. I'm pretty much completely against debt but I don't view charging something on a credit card and once it post paying it off as debt.

I'm talking about taking your savings and investing it and keeping a buffer of a paycheck or two in a checking account so you can pay bills on time. When you build your investment accounts past 50K to 100K are you really gonna need 6 months expenses sitting in a savings account? I'm not talking about retirement accounts like a 401K or Roth either I'm talking normal investment accounts.

It's your life. I offered clear advice so do as you will.

 

[winb83]

It's your life. I offered clear advice so do as you will.

If you're a financially responsible person living well under your means you don't need a large pile of cash sitting around not working for you to make you feel better. That's a concept that's old and outdated.

I live off half of what I make. When an emergency happens I typically don't even touch my savings I just pause savings for the month and divert those funds to pay for the expenses and that's usually after I've charged them on a cash back credit card.

If I lost my job I have more than enough in investments to live a year off them. $20K sitting in a bank account for decades has an opportunity cost to it. in 30 years $20K sitting in investments that earn back 8% annually will compound to over $200K. That's if you simply let it sit and add nothing to it for 30 years. $200K @ 4% dividend returns is $8K a year so in my early 60s I could tap into those dividends and be getting $8000 a year in Dividend payments which adds to $600+ a month more than enough to pay taxes, insurance, and utilities on a paid off home.

Hell in 10 years that $20K doubles at n average return on 7% annually. You're telling me all that is dumb though. Ok.