Originally Posted by lycan
It is the rational course of action. I'm not saying "Blow all your income on crap and then when you lose your job just use credit cards", I'm saying always treat 100% of your money as investment funds, investing primarily in your main business (which if you have a job, means your job... which includes taking good care of your employee, which is you). Hoarding cash is wasteful.
For the sake of continuity, I stole this quote from this thread
. Off-topic to that thread and on topic to this one.
I wish you would have said this from the start. What a lot of people are doing is spending all of their money and relying on credit when things get tough. Not a good idea.
What I've also heard of is people not having an emergency fund but having substantial investment funds. Credit cards have a grace period, in which you could withdraw what you need from your investments to cover the emergency. In that sense, it works.