Fuzzy Math - Personal Finances In The Frum World

[farmbochur]

as long as the people spend money on fancy cars, they can afford tuition

It's all a facade propped up by the proliferation of auto leasing

[S209]

It's all a facade propped up by the proliferation of auto leasing

Yes, but you can afford the equivalent payments to your school instead.

[JuryDuty]

Bump. Can we do this again, with a possibly dramatically different economic landscape than 2 years ago?

We could just make a copy of the survey and a new results sheet - or can include any additional columns like Notes

[Essen est zich]

I just had to use my emergency fund for a good reason, bh I had one.


Just a reminder for those who don't have one that it can happen any day an unexpected cost comes up.

[Moshe Green]

I just had to use my emergency fund for a good reason, bh I had one.

Just a reminder for those who don't have one that it can happen any day an unexpected cost comes up.

Would there have been any difference in your case if you would have just taken a loan and paid it back over 2-3 years?

[AsherO]

Would there have been any difference in your case if you would have just taken a loan and paid it back over 2-3 years?

Potential interest.
Needing to find/arrange a loan during an emergency.
The burden over those 2-3 years of owing money and having to budget extra to repay it vs. the comfort of having the funds on hand when needed.

[Yehuda57]

just taken a loan

"Just"

[Essen est zich]

Would there have been any difference in your case if you would have just taken a loan and paid it back over 2-3 years?

Of course...

I don't think I need to explain what the purpose is of a emergency fund...

The burden over those 2-3 years of owing money and having to budget extra to repay it vs. the comfort of having the funds on hand when needed.

Technically one can invest those funds with the current %4-5 interest, however for me, its the comfort of knowing I have the cash at hand.

[AsherO]

I don't think I need to explain what the purpose is of a emergency fund...
Technically one can invest those funds with the current %4-5 interest, however for me, its the comfort of knowing I have the cash at hand.

The 4-5% interest earned is icing on the cake

[aygart]

Would there have been any difference in your case if you would have just taken a loan and paid it back over 2-3 years?

I would guess that this where a very high percentage of frum CC debt started.

[Moshe Green]

Of course...

I don't think I need to explain what the purpose is of a emergency fund...
Technically one can invest those funds with the current %4-5 interest, however for me, its the comfort of knowing I have the cash at hand.

So technically, not needing the comfort of the cash on hand, an emergency fund can also be dumping a coupla hundred dollars into the s&p500 every month or two and it will grow even more than 4/5%.
Then, if CH"V money is needed, a loan can be taken.
Just sayin.

[AsherO]

So technically, not needing the comfort of the cash on hand, an emergency fund can also be dumping a coupla hundred dollars into the s&p500 every month or two and it will grow even more than 4/5%.
Then, if CH"V money is needed, a loan can be taken.
Just sayin.

An S&P fund is liquid, so you wouldn’t need a loan. OTOH if you expect to potentially need the funds soon, the S&P can shrink the emergency fund in a dip in the short term.

[Essen est zich]

These are all good points to consider for the "use" of a emergency fund.

My point mainly was to give a gentle reminder and reiterate the need to have one.

[Kobe Bryant]

These are all good points to consider for the "use" of a emergency fund.

My point mainly was to give a gentle reminder and reiterate the need to have one.

So hard to believe, there is still a need to reiterate the need for one of the most basic tools to build financial security. Not having an EF

is where a high percentage of frum CC debt started.

[Kobe Bryant]

It is “Standard of living” not “Cost of living” that is destroying the financial future of young families.

[Ver hut gazugt]

It is “Standard of living” not “Cost of living” that is destroying the financial future of young families.

did not listen but looking at my bills I don’t find that statement to be true.

[Moshe Green]

did not listen but looking at my bills I don’t find that statement to be true.

I think he's talking about the average Jew. Not those who are financially responsible (the miyut).

[Euclid]

did not listen but looking at my bills I don’t find that statement to be true.

That's exactly his point, yesterday's luxury becomes today's necessity without realizing it. Worth the listen; the video title is clickbait, it's not words he said.

[EliJelly]

"Image not found or was removed"

[imayid2]

"Image not found or was removed"

Still working for me