Originally Posted by Mounds
I don't know if you're serious, but I'd like to advise otherwise.
When people talk about saving months worth of living expenses, it's with the idea that they might lose their job someday. That way, they won't end up in financial ruin if that day were to come.
If your income got pinched and your back-up plan is a 19% APR credit card, that's not a good position to be in. People go into bankruptcy like that.
1. I am aware of the arguments.
2. I am dead serious.
In countries where a low interest rate on a credit card is 50% a year, keeping a cash balance is a reasonable course of action. In civilized countries where a high interest rate on a credit card is 20% a year, it is not a reasonable course of action. If you stay jobless for so long that the interest becomes a real problem, your problem is not the lack of a backup fund, your problem is a lack of marketable skills.