Quote:
Originally Posted by kermitology
Actually, I think this is a good analogy. Let's say you've historically lived paycheque to paycheque. You've decided to borrow to build your sunroom so you can enjoy your home a bit more. A year later you suddenly lose your job, you live off of the severance for a month or so, but you're not having any luck finding a new job, you've got a few interviews coming up, but no offers, and no paycheque.
What do you do? You have -$2000 in your bank account and you have to pay your utilities and mortgage. Do you sell off everything you own to continue to pay those bills or do you borrow from your HELOC to buy you some time?
And let me be specific, you DO NOT have any savings. Your financial planning for the last 44 years has been to not build up those savings.
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I'm going to quote myself here because I'd really love to hear from Slava on this.