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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Settlement Date:  1/4/2013  5:47 PM
Author:  aj485 Number:  306632 of 312987

Can't he just hide the savings in an online brokerage, wherein he holds shares of readily marketable stocks?

If s/he were willing to do so, yes. In the past, the attitude has been "Everything in the brokerage account MUST BE INVESTED" and "Once purchased, investments CANNOT BE SOLD to generate cash for emergencies/expenses"

I mean the kid lives with his parents and has about a hundred thousand dollars saved up.

Yes, but s/he is unwilling to spend anything on expenses other than money directly from their paycheck. Which is fine, until you get severely injured in a car accident, and would be physically better off taking a leave of absence and, because you have no short term disability coverage, you would not get a paycheck for a few weeks. But because you're not willing to spend anything from the 'savings/investment' pile, you go back to work before you should. If there had been a few thousand in a designated 'emergency fund' that could be used when an actual 'bad thing' (like a car accident) happened, then maybe the OP would not have risked their health to return to work.

And this drama occurs EVERY TIME there is any expense (car repairs, doctor's bills, new tires, etc.) that's not readily covered by the paycheck, followed by savings secured borrowing to pay the expense off, adding to the expenses that the already limited paycheck must cover.

Yes, it's crazy for someone who has $100k in savings and investments to force themselves to live paycheck to paycheck, and borrow money for expenses that should be foreseen (like car repairs, doctor's bills, new tires, etc.), just so they don't touch any of their savings/investments. But that's what this poster has chosen to do. And since they have then chosen this forum to rant about their mostly self-inflicted financial troubles, we get to rant back.

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