I heard a question come across the radio a few months ago, and it went something like this, “If you had to come up with $1,000 within the next 24 hours, could you do it?” In my mind, this should be as simple as going to the ATM, punching in your PIN number and getting your cash. It should really take only 10-15 minutes, right? Well, according to the stat, more than 70% of the population would find it extremely difficult to find that $1,000.
Where Is Their Money?
So, does this 70% just have all of their money tied up in investments? Maybe all of their money is in the equity of their home? Or, I guess it’s possible that some people live from one paycheck to another and never see a comma in their bank ledger. You’d think they they could at least get a payday loan with no fees or instant cash loans direct from lender, but maybe these options are against the rules of acquiring the $1,000.
The Right Way to Do It
If you are a living, breathing human being, you should most definitely have an emergency fund set up in the event that something goes wrong. Perhaps your water heater goes out, your tranmission breaks on your car, or perhaps a freak accident happens to you at work. You could very quickly accumulate a bill of $1,000 in a matter of minutes.
So what do you do if you don’t have the money to pay for it? You reach for your credit card of course! Then you end up paying interest on that borrowed money, and you run the risk of having another emergency while you’re trying to pay down the balance. And then comes the downward spiral of debt. One debt piles on top of another and you’re soon unable to make even the minimum payments! Believe me, it happens, and it’s no picnic.
If you had that cash tucked away for emergencies, all you’d have to do is write a check and take care of that unexpected expense. Then, you’d spend the next couple of months reimbursing that money for the next emergency. No interest would be owed and no downward spiral would happen. Simple simple.
Do you have access to $1,000 within 24 hours? I sure hope so.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.