Borrow from yourself first, that’s what I say. It sounds funny, but think about it. What if you needed $1,000 or $2,000 in cash right now, where would you get it? Would you pull it from your emergency fund? Take out a payday loan or credit card advance (please say you wouldn’t)?
I ask this because people do the oddest things when it comes to getting their hands on money. They’d borrow, steal, and even cheat sometimes before pulling from their own cash reserves. I once knew a guy who’d take out an 8% loan every time he “needed” something instead of dipping into his $5k+ savings account. Why? I’m all for doing what makes you comfortable, but financially I just don’t think it makes any sense.
We have savings accounts, rainy day accounts, and emergency funds set up for a reason – to have cash available at a time of need.
If you don’t pull from it then, then when? We all validate “emergencies” in different ways, but it really IS OKAY to pull from your stash when needed :) I know that sounds crazy, but that’s seriously what they’re there for.
In fact, I had a brilliant idea of listing out all the possible ways you could get your hands on money – in order of need & financial smartness – but after an hour and a half (and going) I realized it’s better set for another day. And that day being Monday ;) So go out and enjoy your weekend for now, and we’ll get back to this tantalizing list of options upon your return. I’m hoping you like it as much as I do!
PS: Some of my favorite tools:
|Personal Capital (FREE) -- If you’re looking for a robust financial tracker, Personal Capital is the way to go! They’re like Mint, but on steroids and have much better tools for investment and net worth tracking. // Full review|
|Digit (FREE) -- A super easy (and automated) way to save. Every day Digit analyzes your income and expenses and will push money aside for you any time it sees extra sitting there. I've saved over $4,000 myself using them so far! // Full review|
|Acorns -- Having trouble finding money to invest? Check out Acorns – they round up all your transactions to the nearest $1.00 and drops the difference into an investment portfolio for you. Easy way to start investing! // Full review|