Wednesday, February 1, 2017

Emergency Fund

I may have to tap into my Robinhood Portfolio soon, and that makes me sad. I have some upcoming expenses that may require me to withdraw money from Robinhood. Having money in the stock market probably isn't a true emergency fund. Emergency funds are supposed to be "liquid", meaning you can use that money immediately. For it to be considered liquid, it'd probably have to be in a savings, checking, or money market account. 

For me, I know these expenses are upcoming, so I can essentially borrow from the "Bank of Mitch" and help with my upcoming expenses. It sucks to have to pull money out from stocks, which is going to hurt growing my dividends, but oh well. I'd rather borrow from myself, then borrow money from a real bank and have to pay that money back with interest. 

Emergency funds are important, and I encourage all of you to have one. 

Signed,

Mitch

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Thanks for your thoughts!