| Tight financial situation |
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cloneBaby
Member
Cash: $ 4.05
Posts: 18
Joined: 29 Aug 2006
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| Tight financial situation |
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I am making some investment right now, and it'll probably cost a bit more than I initially planned, which I kind of anticipated. I can make the payment, and I will still have a bit of cash left after the payment. However, I will definitely be low in cash, and I don't feel good about it. Should I think about borrowing money in case of emergency? As of right now, I have no debt, and I do not want to borrow any money, but I don't want to be in a situation which I can't really have any money to spend even if that money is borrowed. What should I do? Should I look for a way to borrow some money or it's totally unnecessary.
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Sat Nov 18, 2006 4:29 am |
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rockhound
Preferred Member
Cash: $ 26.45
Posts: 132
Joined: 03 Feb 2006
Location: West Virginia
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| Hanging Out |
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Well, you have left yourself hanging out there by depleting your emergency fund. However, I don't think I would take out a loan just to have extra cash on hand for these two main reasons: 1) you'll be paying interest on money that you might not even need, which would offset what you were making on the investments; 2) "cash on hand" has a way of disappearing on things (the new couch you just had to have, potato chips, the ceramic squirrel clock that looks so cute, etc.). Why not wait and see if you actually have an emergency that you really need cash for? If you did have a real emergency, you could always use a credit card, and then focus on paying that off as quickly as possible. In the meantime, you can restrict your spending and try to build up an "emergency emergency" fund, and keep adding to it until you get back into your comfort zone. I'm not sure how big of an emergency you're anticipating, but start by saving up enough to deal with needing the car fixed (say $500), and then increase that to include if the furnace quits this winter (say $3,000). You may sweat for a little while, but after you get the equivalent of a few months' salary saved up, things will start looking better again. If the kind of emergency you mean is needing quadruple bypass surgery, then that's a whole different ballgame.
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Sat Nov 18, 2006 9:19 pm |
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cloneBaby
Member
Cash: $ 4.05
Posts: 18
Joined: 29 Aug 2006
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| Re: Hanging Out |
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quote:
Originally posted by rockhound
I'm not sure how big of an emergency you're anticipating, but start by saving up enough to deal with needing the car fixed (say $500), and then increase that to include if the furnace quits this winter (say $3,000). You may sweat for a little while, but after you get the equivalent of a few months' salary saved up, things will start looking better again. If the kind of emergency you mean is needing quadruple bypass surgery, then that's a whole different ballgame.
If I'm calculating the number right, I should be able to get by for a couple of months even if things get really bad, but, it's just that, to me, this is an investment of a substantial size, so ... I guess I'm feeling a bit anxious.
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Sun Nov 19, 2006 12:25 am |
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more freedom
Full Member
Cash: $ 16.20
Posts: 80
Joined: 12 Jul 2006
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I got started with very little money years ago, and personally I don't see why you should save some money for the emergency fund
Good luck
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Thu Jan 04, 2007 11:15 pm |
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