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Here is a thought
You need an 'Emergency Fund'...
...no matter your wealth
// THREAD //
You need an 'Emergency Fund'...
...no matter your wealth
// THREAD //
1. Life is full of surprises
You don't know what is around the corner
You can't predict the unpredictable
Roof leak
Car accident
Washing machine blows up
..or worse
Death
Divorce
Sickness
Redundancy
Sometimes, life smacks you in the face
Be prepared
You don't know what is around the corner
You can't predict the unpredictable
Roof leak
Car accident
Washing machine blows up
..or worse
Death
Divorce
Sickness
Redundancy
Sometimes, life smacks you in the face
Be prepared
2. Cash Is King
Cash is king when shit hits the fan
Hold at least 3-6 months expenses in cash.
Then, in an emergency:
You can buy anything
You can buy it quickly
But...
Cash is king when shit hits the fan
Hold at least 3-6 months expenses in cash.
Then, in an emergency:
You can buy anything
You can buy it quickly
But...
3. Cash Is Terrible
Cash saving rates are dire
Inflation destroys your cash buying power
And that destruction compounds
So, many want to put their money to better use
...Let's debunk some of the 'better uses'...
Cash saving rates are dire
Inflation destroys your cash buying power
And that destruction compounds
So, many want to put their money to better use
...Let's debunk some of the 'better uses'...
4. Use Credit Cards
Some say use credit cards for emergencies
Most are only 30 day interest free
You can't pay your mortgage on CC
Replenishing your emergency fund takes longer
A second or third emergency hits, you are at risk of spiraling into huge CC debt
Some say use credit cards for emergencies
Most are only 30 day interest free
You can't pay your mortgage on CC
Replenishing your emergency fund takes longer
A second or third emergency hits, you are at risk of spiraling into huge CC debt
5. Invest It All
Why not sell your investments in emergencies?
Liquidity - 3 days for your trade to settle, days for funds to hit your bank. Won't help your emergency, RIGHT NOW.
Market Downs - Emergencies often hit when markets are down. You realize losses.
Why not sell your investments in emergencies?
Liquidity - 3 days for your trade to settle, days for funds to hit your bank. Won't help your emergency, RIGHT NOW.
Market Downs - Emergencies often hit when markets are down. You realize losses.
6. Cashflow Instead
Have cash flowing assets. Like Real Estate, or a Business
Works unless your assets are coupled to your emergency.
Take the pandemic
It's been legal to accrue rent arrears. Landlords have no comeback
Many businesses forced to close
Have cash flowing assets. Like Real Estate, or a Business
Works unless your assets are coupled to your emergency.
Take the pandemic
It's been legal to accrue rent arrears. Landlords have no comeback
Many businesses forced to close
7. Cash IS King
..for when shit hits the fan
Here are 10 sane ideas for how to manage your Emergency Funds
Subscribe for more
http://moneymage.net/subscribe/ https://www.moneymage.net/where-should-i-keep-emergency-fund/
..for when shit hits the fan
Here are 10 sane ideas for how to manage your Emergency Funds
Subscribe for more
http://moneymage.net/subscribe/ https://www.moneymage.net/where-should-i-keep-emergency-fund/
