Pennsylvania Firearm Owners Association
Page 3 of 3 FirstFirst 123
Results 21 to 29 of 29

Thread: Emergency Fund

  1. #21
    Join Date
    Jan 2013
    Location
    Richboro, Pennsylvania
    (Bucks County)
    Posts
    2,038
    Rep Power
    21474846

    Default Re: Emergency Fund

    Quote Originally Posted by Jhaydeno View Post
    _^^^. This. My wife hates debt. Pay off your CC’s as best you can, save that credit for when you need it. Get ahead o your home (or buy on) so you can borrow against it if needed. Drive your car a few extra years, buy them used... There are all kinds of strategies and we’ve all heard them before. The trick is find one that works for you and stick to it.

    For some this may be a wake up call, to others it may be old hat. Either way, I hope we all make it through these downturns.
    The only thing I can add is NEVER have any credit card debt. Don't fall into that trap, they will screw you for 20+% of your money. If you don't have the cash to pay something off in full at the end of the month don't be buying it. You will never get ahead in life if you have credit card debt. Imagine if you could put that 20+ percent of the money you piss away into savings. Would you take a 20% pay cut (after taxes)?


    Of course I don't mean this if you are recently unemployed, your car breaks down, or your kids are starving. Bad things happen. But I know too many people with steady jobs that need that new 55 inch TV.

  2. #22
    Join Date
    Apr 2012
    Location
    Pittsburgh, Pennsylvania
    (Allegheny County)
    Posts
    550
    Rep Power
    5988740

    Default Re: Emergency Fund

    Quote Originally Posted by Delkal View Post
    The only thing I can add is NEVER have any credit card debt. Don't fall into that trap, they will screw you for 20+% of your money. If you don't have the cash to pay something off in full at the end of the month don't be buying it. You will never get ahead in life if you have credit card debt. Imagine if you could put that 20+ percent of the money you piss away into savings. Would you take a 20% pay cut (after taxes)?


    Of course I don't mean this if you are recently unemployed, your car breaks down, or your kids are starving. Bad things happen. But I know too many people with steady jobs that need that new 55 inch TV.

    I’ll add to the CC debt thing.... DO NOT use a CC for consumables!!! EVER.

    Too many people use their CC for consumables. Fuel, groceries, entertainment, etc, then have nothing to show for the massive debt that they will be paying off for the rest of their lives, making minimum payments on the interest, and never knocking down the principal. They will never get out of the debt cycle, and never have anything to show for it.

    If you are going to use a credit card, only use it for things of real value or emergencies, and have a plan to pay it off in a reasonable time frame. Additionally, get rid of any cards that are high interest rates. 20% is rediculous. 15% is marginally better. 10% or below is where you want to be if you’re using a cc. That way, if you can’t pay it off in full before the next billing cycle, you’re paying the principal, and not just the interest. I paid for my new driveway (as well as many other things) on cc, where I just didn’t have enough cash on hand to pay for it. But I also put $500-$1000 a month to the bill, and paid it off relatively quickly. You just have to have a plan and be disciplined about it.

  3. #23
    Join Date
    Nov 2010
    Location
    Piney twp, Pennsylvania
    (Clarion County)
    Posts
    1,375
    Rep Power
    21474847

    Default Re: Emergency Fund

    I use a credit card 90+% of the time. But as others have wisely advised I have not had any debt on one in the last few decades. The rewards card we use payed for Christmas for 3 grandsons last year, and a bit more.
    Remember the first person you pay when you get money is yourself. 10-15% right off the top to some kind of savings. It'll add up.
    Unless your in the camp of all the rich Poofers here, then it doesn't matter.
    It ain't what they call you, it's what you answer to.

  4. #24
    Join Date
    Apr 2008
    Location
    Pocono`s, Pennsylvania
    (Monroe County)
    Posts
    3,540
    Rep Power
    21395339

  5. #25
    Join Date
    Jul 2013
    Location
    Mohnton, Pennsylvania
    (Berks County)
    Posts
    6,449
    Rep Power
    21474849

    Default Re: Emergency Fund

    Quote Originally Posted by free View Post
    I know that is the classic advice. I can’t disagree with it either. But it simply isn’t practical for many people.

    EVEN IF you have the funds to do it, holding that much cash instead of having it work for you is expensive.

    An alternative approach is to have enough cash for one month and to keep open enough credit to cover 5 months, especially in the form of 0% offers. I can get a 0% offer for at least 18 months right now, from at least 5 different companies...and all my credit lines are large enough to cover the 5 months of expenses.
    Can you? Right now? Things are dynamic right now. That’s the thing about preparing. You only have past experience to go on. Credit can be unavailable. Payment systems can be locked down. Gold and silver outlawed. Cash barred. Money reset. Hoards confiscated. People rounded up. I have seen every old saw turned on it’s head. You just do your best. That’s all you can do. Everything can be taken away in an instant. Tomorrow is not promised. Seize the day.
    The Gun is the Badge of a Free Man

  6. #26
    Join Date
    Oct 2007
    Location
    lower burrell, Pennsylvania
    Posts
    253
    Rep Power
    1364970

    Default Re: Emergency Fund

    I agree with what a few have said - this should teach a lesson to many, but it probably won’t. While it may be difficult for some to save an emergency fund, I think for most it is too inconvenient. Think of the people you know and look at how they live. They always have the new iPhone, smart watch, daily lattes, new cars, etc.. They live beyond their means instead of living beneath them.

    Living the way most of our grandparents lived would make this country a much better place. People need to understand the difference between ‘wants and needs’. For most, saving for tomorrow is a foreign concept. At the same time, given the bailout mentality of this country, maybe they are smarter than I am.

  7. #27
    Join Date
    Aug 2012
    Location
    Pennsylvania
    (Montgomery County)
    Posts
    247
    Rep Power
    1375311

    Default Re: Emergency Fund

    Quote Originally Posted by free View Post
    I know that is the classic advice. I can’t disagree with it either. But it simply isn’t practical for many people.

    EVEN IF you have the funds to do it, holding that much cash instead of having it work for you is expensive.

    An alternative approach is to have enough cash for one month and to keep open enough credit to cover 5 months, especially in the form of 0% offers. I can get a 0% offer for at least 18 months right now, from at least 5 different companies...and all my credit lines are large enough to cover the 5 months of expenses.
    This is not an investment,it's an emergency fund. Consider any "lost" investment (possible/imaginary) gains as the cost of this self-insurance.

    Credit can be pulled from you in an emergency at any time, it's not yours to use at will. If you use credit during a financial emergency you just pushed your family deeper into the hole. Instead of coming out on the other side ready to get back to your life, you'll come out with a mountain of debt.

    Credit is no substitute for an emergency fund.

  8. #28
    Join Date
    Apr 2008
    Location
    Pocono`s, Pennsylvania
    (Monroe County)
    Posts
    3,540
    Rep Power
    21395339

    Default Re: Emergency Fund

    I have to say that while we were raising our kids there were many if not most times we were one or two paychecks from losing it all. About 30 years ago we got really serious and started living minimally. My downfall is trucks and harleys but I've always paid for them except for a few times when using credit got a bigger rebate then paid the loan off after first payment.
    Right now if I just maintained my present lifestyle I could go maybe 3 years or a little longer if I had zero income and no SS. Like I said though for the most part I live modestly.

  9. #29
    Join Date
    Dec 2008
    Location
    Seneca, South Carolina
    Posts
    1,432
    Rep Power
    2335544

    Default Re: Emergency Fund

    Quote Originally Posted by PA_PB&J View Post
    This is not an investment,it's an emergency fund. Consider any "lost" investment (possible/imaginary) gains as the cost of this self-insurance.

    Credit can be pulled from you in an emergency at any time, it's not yours to use at will. If you use credit during a financial emergency you just pushed your family deeper into the hole. Instead of coming out on the other side ready to get back to your life, you'll come out with a mountain of debt.

    Credit is no substitute for an emergency fund.
    THIS. Already there has been a massive bank run going on and many banks are starting to close or reduce lines of credit to stem the outflow of cash. The first lines of credit typically suspended are HELOCs because they are easy for banks to close (it is easy to claim reduced underlying asset value in a crisis like this). Credit cards right behind - if you recall 2009 when credit card issuers severely reduced credit lines for nearly all customers except those with exceptional credit ratings.

    Using credit for emergencies only leaves you in a terrible financial situation. Even after the emergency passes, you're left with debt that you may not be able to repay, or that will cost you a fortune in interest over a prolonged repayment period.

    The best thing to do is live well within your means, have small expenses, and save 1-2 years of expenses in nonvolatile, insured liquid assets.

Page 3 of 3 FirstFirst 123

Similar Threads

  1. Replies: 4
    Last Post: January 11th, 2018, 07:13 PM
  2. ATF Slush Fund
    By Black Sheep in forum National
    Replies: 9
    Last Post: February 24th, 2017, 07:13 PM
  3. Replies: 3
    Last Post: February 17th, 2015, 07:38 PM
  4. OC'd to the PTO fund raiser...
    By headcase in forum General
    Replies: 45
    Last Post: June 1st, 2008, 09:48 PM
  5. Pen for the gnbrotz fund
    By Frenchy in forum General
    Replies: 132
    Last Post: December 23rd, 2007, 08:58 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •