Money Myth 3: Using Credit Card for Emergencies
Do you have an “emergency credit card”? Well, how about instead, build an “emergency savings account”?!
It’s become very normal for us to rely on credit cards for emergencies.
But this doesn’t actually make any sense. You’re just delaying the responsibility of paying for the expense….and indebting yourself to someone else. The expense will also cost you more money because you’ll likely have to pay interest. Minimum payments could you take 15 years to pay off a balance!
So instead, learn to save!!!! Then, when you have an emergency expense, you won’t have to worry about how you’re going to pay for it.
It’s a matter of when, not if, they’ll happen. Begin with a goal of setting aside $100 then increase it as you are able to have a minimum of $1,000 in an account.
To get started saving for your emergency account, download the Money Map at crown.org/money