Lifestyle and Careers

Credit Cards Are NOT For Emergencies

How many of you have ever said, “It’s ok I have a credit card for emergencies”?

Don’t worry, we have too. But why and when did this become ‘ok’? Typically when you think of a financial emergency, it’s usually something pretty big, right? Something that you know you cannot front the money for should it happen? A great idea, but a poor execution. A credit card should never be considered for an emergency. Why? Think about your daily expenses, what expenses can you remove and put that money towards an emergency fund? Seems like I’ve said this before, but I’ll say it again, C͟A͟S͟H͟ I͟S͟ K͟I͟N͟G͟.͟

Imagine a World Where a Credit Score Is Irrelevant

Picture this…you live in a world where you keep more of your money, you stop wasting & loosing hundreds (maybe thousands?) of dollars paying interest (which just goes into someone else’s pocket for literally doing nothing), and you are completely able to handle a financial emergency with cash..What if a credit score was irrelevant? Hard to tell you ‘no’ if you HAVE CASH.

Emergency Funds and High Yielding Savings Accounts

Better yet, what if by saving this cash in a high interest savings account that earns between 1.5-2.0% for JUST SITTING IN YOUR ACCOUNT? What if this emergency happened & you had literally ZERO stress about how to pay for it? We know, what a concept…but it’s completely possible. We know, because we are literally living it A͎T͎ T͎H͎I͎S͎ M͎O͎M͎E͎N͎T͎. Before the pandemic, we consistently worked hard to fund between 3-6 months of an emergency fund that covers all of our monthly expenses and necessities. 2 years ago…before we became more financially literate, it was hard to cover 1 month of expenses.

The Greatest Offense is a Better Defense

Took us awhile to understand the value of cash. More importantly, took us awhile to understand the power YOU have when you are prepared for a financial emergency. The greatest offense is a better defense. Defending your sanity, your financial health, & your future is easier with an emergency fund. Build your defense.

Regarding credit cards, Unless you are someone so organized that after using a credit card you immediately pay it off, give me one good argument for having a credit card……
….Don’t worry, I’ll wait…

Oh..and no…there are better ways to build a ‘credit score’…

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