Re:Why Don't People Manage Debt Better?
by nimblegorilla on Friday February 19, 2016 @06:02PM
(#11137425)
People able to save 15k of cash usually have decent credit ratings and can get 0% financing for most things.
Re:Why Don't People Manage Debt Better?
by 2muchcoffeeman on Friday February 19, 2016 @04:39PM
(#11136839)
> This is more money than the typical American 40 year old has saved up their entire life (including retirement accounts)
Seriously? I feel like an old man. I had that much money saved in less than a year from starting my first part time coding job.
In fact the whole not saving money thing seems a bit strange to me. My monthly cost have remained relatively stable for almost a decade while my salary keeps going up.
A typial 6-month Emergency fund is somewhere on the order of $15k, depending on where you live. This is more money than the typical American 40 year old has saved up their entire life (including retirement accounts)
http://www.fool.com/investing/general/2015/05/17/americans-a...
If you manage to have $15k, and you are making a big purchase, do use it before you start using a credit card. Now of course, if you have $15k "Emergency use only" PLUS $5k "discretionary", then yeah, spend the money from your discretionary account first.