Quote:
Originally Posted by dobbles
i find thats a pretty unrealistic scenario for most people. i myself have very little debt. something like $100 bucks on a discover card and about $5k in student loans still. but i still understand where credit cards can still be useful for responsible people. often times credit cards can be a good way to deal with an emergency. if for instance your furnace breaks in the middle of winter, its not realistic to wait a few months until you can save the money to purchase a new one outright.
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I don't think Ernie's being unrealistic at all. He was saying don't carry CC balances. Whatever you earn, spend less. It's not hard. This is achievable for almost everyone. People get themselves into financial difficulty, generally, because of poor choices, not because circumstances have conspired against them. I know this isn't what you're saying, but I think Ernie's correct. I've been in my business for many years now and I've seen it all.
Regarding your example of the furnace breaking down ----> emergency fund.
I firmly believe that almost everyone has the opportunity to protect themselves and their family, build a moat around their finances and build the future of their dreams, accumulating more money than they probably thought they could. The reason most people fall far short of their financial goals is poor decisions.