Quote:
Originally Posted by dredge
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ok, Smart guy.
How much can you "afford" if you lose your job and health insurance and get hospitalized for 3 weeks?
Good thing you got that $250k buried in the back yard
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This is what is called...
risk. As Kassel mentioned, in order to mitigate this risk, you save 4 or 6 months of expenses in a highly liquid account to be able to access in the event of an emergency. Many people call this their 'emergency fund'. That's probably the most basic and universal starting point for personal finance. Maybe budgeting is more basic...
Unfortunately basic personal finance isn't included in most elementary/high school curriculum. That probably could have helped a considerable number of people not get into the mess that you sadly found your way into. I'm really not trying to be a jackass, there are a ton of people that have just never been educated in basic personal finance.