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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: It's time. Date:  1/24/2019  1:11 PM
Author:  aj485 Number:  312405 of 312954

An emergency fund actually sounded like a good idea to me a while back, but the more my eyes open up the less I see the sense in it right now, unless someone wants to pay me > 17% on that money. It seems like a Dave Ramsey psychological win thing that isn't really financially the best. I would think that most savvy people would say that it isn't the best idea just like getting a large tax refund isn't the best idea.

The emergency fund is certainly not the most efficient way from a cost perspective. Putting the $1000 onto a credit card will save you $175 each full year you have a card charging you 17.49% (If you manage to get the 17% cards paid off quickly, then it drops to saving you $140 a year.)

That said, there is value in learning how to 'let money sit' and there is the 'sleep at night' factor. Those may or may not be worth $140 a year to you at this point in time - only you and your family can decide that.

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