Let me dissect the 4 excuses (read bullshit) given for not having an emergency fund in reverse order:
- Some other bull Shit:Since this is anyways bullshit I need not examine this.
- I can always call fall back on my parents in case of emergency: Your parents have raised you cleaned your nose and god knows what else and gave you pocket money and I am pretty sure paid for your education. Now when you are an adult and have a job you want to go back to your parents because you were stupid enough to blow all your money. I think a little bird has more decency than you who also flies out of the nest once it grows it wings. If you still want to go for this option why don’t you change your middle name to “ Parasite”. If you plan to call your wife's parents in case of emergency than you are not parasite as I do not want to offend Parasites by comparing you to Parasites.
- Credit Card: Sure you have a Uranium credit card with 3 Lakh ( replace 3 lakh with your combined credit card limit on all cards) limit but remember it is Uranium ( the Credit Card company misspelled it as Platinum). The toxic effects of using your Uranium credit card when you don’t have money to pay back on payment date are going to be disastrous and last for a long time. Also remember the very purpose of having an emergency is fund is so that you do not have to use high interest rate loans ( that is what credit cards are) in case of emergency.
- Stable Job: My friend even the President of USA does not have a stable job what about you and me. Most of us are dependent on a hundred things for stability of our jobs. A takeover in US , a better product in Japan, a cheaper clone in China, a stupid policy in New Delhi anything can take away our job. So never rely on your job to pay for emergencies. And also remember one of the biggest emergency you can have is “Not Having a Job”
Next blog we will examine what can go wrong if you do not have an emergency fund.
Thanks for reading.